Which of the following components is not included in GDP calculations?

The reason net income from foreign sources is not included in GDP calculations is that GDP measures the total value of all final goods and services produced within a country's borders in a specific time period. The components of GDP consist of consumption, investment, government purchases, and net exports (exports minus imports).

Net income from foreign sources, which includes income earned by residents from investments abroad minus income earned by foreign residents from domestic investments, is part of Gross National Product (GNP), not GDP. GNP focuses on the production value generated by a nation's residents regardless of where that production takes place, while GDP is strictly focused on production within national borders.

Understanding this distinction helps clarify the components that contribute directly to GDP, illustrating why net income from foreign sources does not factor into its calculation.