Which of the following is usually excluded when measuring a country's Gross Domestic Product (GDP)?

Correct — C. GDP counts only final goods and services. Intermediate goods are used up in making something else, so their value is already inside the final product's price.

Say wheat sells for ₹50, the flour made from it for ₹80, and the bread for ₹120.
Adding all three gives ₹250 and counts the wheat three times.
GDP takes only the ₹120 of final value.

Intermediate goods are excluded → option (c).

Why the others are wrong

• (a)
  Consumer spending on final goods and services. — Consumer spending is the C in GDP = C + I + G + (X − M). Purchases of final goods and services are exactly what GDP is built from.
• (b)
  Government expenditure on public services. — Government spending on goods and services is the G. What GDP leaves out is transfer payments, such as pensions, because they buy no current output.
• (d)
  Net exports (Exports − Imports). — Net exports are the (X − M) term of GDP. Exports are domestic output sold abroad, and imports are subtracted because they were produced elsewhere.

GDP is the market value of all final goods and services produced within a country's domestic territory in a year.

Two routes avoid double counting. The final-output route counts only goods bought for final use. The value-added route sums what each stage adds: ₹50 + ₹30 + ₹40 = ₹120 in the bread example.

The same total appears on the spending side as C + I + G + (X − M).

Key facts

• GDP counts final goods and services only, to avoid double counting.
• Value added = value of output − value of intermediate inputs.
• Expenditure method: GDP = C + I + G + (X − M).
• Transfer payments, such as old-age pensions, are excluded because they are not payments for current output.

Common traps

• Thinking net exports are excluded because imports are subtracted: the (X − M) term is part of GDP.
• Judging a good by what it is rather than how it is used: flour bought by a household is final, flour bought by a bakery is intermediate.

No directly related past PYQ was found.