Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Production Approach
B
Expenditure Approach
C
Income Approach
D
Trade Approach
Understanding the Answer
Let's break down why this is correct
Answer
To understand which methods are not used to calculate Gross Domestic Product (GDP), we first need to know the main methods that are actually used. GDP can be calculated using three main approaches: the production approach, which looks at the total value of all goods and services produced; the income approach, which adds up all incomes earned by individuals and businesses; and the expenditure approach, which considers all spending on goods and services. If a method does not fit into these categories, it is likely not used to calculate GDP. For example, using population size alone to determine economic performance would not be a valid method for calculating GDP. Thus, any method that does not involve production, income, or spending is not relevant for GDP calculation.
Detailed Explanation
The Trade Approach is not a method for calculating GDP. Other options are incorrect because Some might think this is not a method, but it is; This method is often confused with trade.
Key Concepts
GDP calculation methods
Topic
GDP Calculations and Comparisons
Difficulty
easy level question
Cognitive Level
understand
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