[Solved] While determining income the expenditure on which of the following items is not considered as investment?

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Q.	While determining income the expenditure on which of the following items is not considered as investment?
A.	Construction of factory
B.	Computer
C.	Increase in the stock of unsold articles
D.	Stock and share in joint stock company
Answer» C. Increase in the stock of unsold articles
Explanation: The gross national product is the sum total of all final goods and services produced by the people of one country in one year. The GNP is a flow concept. It can be calculated with either the expenditure approach or the income approach. The expenditure approach sums all that is purchased: in a sense, it is equivalent to the income approach because purchases are only possible if income is present. GDP can be calculated as the sum of all expenditures: personal consumption expenditure (C), gross private domestic investment (Ig), government purchases (G), and net exports (Xn). Increase in the stock of unsold articles do not come under any of these heads.

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