Features of GDP
The important features of gross domestic product at market price are as follows:
- It includes all final goods and services produced within the domestic territory of a country by the resident as well as non-resident producers.
- The GDP generally includes only those goods and services coming to the market for transaction purposes.
- Imputed value of some goods and service which do not come to the market for sale like owner occupied dwellings, free accommodation to the workers etc. is included in GDP.
- The price of goods and services refers to the prevailing market price in the accounting year.
- Transfer payments, capital gains and income earned through illegal means are not included in GDP.
- It includes only new goods and services. The value of second hand goods, financial capital like shares and bonds are not included.
- It includes depreciation allowance.
