What is non productive transaction?

Answer 1

Oh, honey, a non-productive transaction is basically a fancy term for a transaction that doesn't result in any real economic benefit or value. It's like buying a gold-plated toaster when you already have a perfectly good one at home - pointless and a waste of money. So, if you catch yourself engaging in non-productive transactions, maybe it's time to rethink your spending habits, darling.

Answer 2

A non-productive transaction refers to a financial transaction that does not directly contribute to the production of goods or services in an economy. These transactions typically involve the buying, selling, or trading of existing assets such as stocks, bonds, or real estate, without creating any new value. Non-productive transactions can sometimes lead to market inefficiencies and distortions, as they may prioritize short-term gains over long-term economic growth. It is important for policymakers to monitor and regulate non-productive transactions to ensure the overall health and stability of the economy.

Answer 3

There are two kinds of transactions which are excluded from GDP including non-production transfers and second hand sales. There are further three kinds of non-production transaction that are excluded from GDP and they include public transfer payment, private transfer payment and security transactions. All these transactions do not come under GDP calculations. Moreover, second hand sales may include selling the old equipment by an individual.