Ace 

The core concept here is what counts as current production when estimating GDP.

Option A is correct because the vegetables are a final good produced within the domestic territory during the current year, so their market value adds to GDP. GDP measures the money value of all final goods and services produced in an economy in a year.

• Final good, current production: the vegetables were grown this year and sold for final consumption, so their full market value enters GDP. If they had been sold to a restaurant as an input, they would be an intermediate good and only the restaurant’s final output would count.
• Produced within the domestic territory: the farm operates inside India, so the output belongs in India’s GDP regardless of who buys it.

• Option B (Second-hand car): this is incorrect because the car was already counted in GDP in the year it was produced. Reselling it merely transfers ownership of an existing good — no new production takes place. (Only the dealer’s commission, a fresh service, would count.)
• Option C (Purchase of shares): this is a financial transaction. Buying shares transfers a paper claim between parties; it does not correspond to any production of goods or services, so it is excluded from GDP.

That’s a good question and a key distinction in national income accounting.

GDP measures production, not the movement of money. When you buy shares, money moves from you to the seller, but nothing new is produced — an existing financial asset simply changes hands.

The same logic applies to second-hand sales and transfer payments: they move money around without creating output. The only part of a share purchase that enters GDP is the broker’s commission, because that is a service produced this year.