Question:
Which of the following statements is correct?
(1) Earnings from gambling are included in the production boundary of national accounts.
(2) Consumption of durable capital goods is not a component in primary income.
(3) Growing vegetables in backyard garden for personal use is counted in the measuring of Gross Domestic Product.
(4) Provision of free education services by the government is not counted in the measuring of Gross Domestic Product.
(5) Mixed income is earned by all institutional units.
Correct Answer:
(3)
Answer Explanation:
Under the System of National Accounts (SNA), production of goods for own final consumption (like growing vegetables in a backyard) is included in the production boundary and therefore estimated and counted in GDP.
Topic: National Income Year: 2023
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