Gross Domestic Product (GDP) of a country is generally derived from which of the following sectors of the domestic economy, and which listed sector is not usually treated as a separate producing sector for GDP calculation?

Introduction / Context:
Gross Domestic Product (GDP) is a measure of the total value of final goods and services produced within a country's borders in a given period. For understanding the structure of an economy, GDP is usually broken down into broad sectors. This question asks you to identify which option does not represent a standard domestic producing sector from which GDP is directly derived.

Given Data / Assumptions:

• GDP is calculated from production within the domestic territory of a country.
• Standard sectoral breakdown uses agriculture, industry and services.
• International transactions are handled separately in national accounts.
• We are asked which listed sector is not a primary domestic production sector for GDP.

Concept / Approach:
In national income accounting, GDP by origin is typically divided into three broad sectors: the primary sector (agriculture and allied activities), the secondary or industrial sector (manufacturing, mining, construction, utilities) and the tertiary or service sector (trade, transport, finance, administration and other services). While international trade (exports and imports) affects the expenditure side of GDP through net exports, there is no separate “international sector” considered as a domestic producing sector in the same way as agriculture, industry and services. International transactions relate to flows between residents and non residents, not to a distinct production sector located outside domestic territory.

Step-by-Step Solution:
Step 1: Recall the three main domestic sectors used when we break down GDP by production: agriculture, industry and services. Step 2: Recognise that GDP measures output produced within the domestic territory of the country. Step 3: Understand that international transactions like exports and imports appear in the GDP identity as net exports, but are not a separate domestic producing sector. Step 4: Identify “international sector” as the option that does not fit the usual list of GDP origin sectors.

Verification / Alternative check:
Consider the commonly used GDP composition charts in textbooks and reports, which show contributions from agriculture, industry and services. There is typically no bar or slice labelled “international sector” because exports are produced by domestic sectors and imports are foreign produced goods and services. International trade affects how output is used and who buys it, but does not form a separate domestic production sector, confirming that “international sector” is not counted in the same way.

Why Other Options Are Wrong:
Agricultural sector: This is part of the primary sector and clearly contributes to GDP through production of crops, livestock and related activities.
Industrial sector: This includes manufacturing, mining, construction and utilities, all of which produce goods and services counted in GDP.
Service sector: This includes a wide range of services such as trade, transport, communication, finance, education, health and public administration, all of which contribute directly to GDP.

Common Pitfalls:
One common confusion is between the expenditure approach and the production approach to GDP. Because net exports (exports minus imports) appear in the expenditure identity, some students think of an “international sector” as a separate producing sector. Remember that net exports adjust for the fact that some domestic output is sold abroad and some domestic expenditure falls on foreign output, but they do not represent a separate sector of domestic production. Keeping this distinction in mind helps avoid errors in such questions.

Final Answer:
GDP is derived from the agricultural, industrial and service sectors, and not from a separate international sector as a domestic producing sector.