Product method of GNP Measurement

Product Method of GNP Measurement

Under product method of GNP measurement cost of all goods & service produce during the year is added or summed up. Only final goods & services are included under this method.

Goods & Service not Included (Excluded)

1.    Old Goods

Only new goods and services produced during the year is included under this method.

2.    Government Transfer Payments

Transfer payment such as pension etc is not included as payment against services, because no service is being provided against this type of payment.

3.    Private Transfer payments

Private transfer payment (without being received any service) should not be included as payment for services. Such payment include charity, zakat etc.