Which of the following is NOT a component of GDP?

Gross Domestic Product (GDP) measures the total economic output of a country and consists of several key components, which are typically consumption, investment, government spending, and net exports. Consumption represents the total spending by households on goods and services. Investment includes spending on capital goods that will be used for future production. Net exports account for the difference between a country's exports and imports, indicating how much a country sells to the rest of the world compared to what it buys from it.

Taxation, however, is not a direct component of GDP. While taxes can influence overall economic activity by affecting consumption and investment decisions, they do not directly represent an economic transaction that contributes to output. Instead, taxes are a means through which government revenue is generated, which can subsequently influence government spending—part of GDP—when the government decides how to allocate that revenue.

Therefore, the option stating taxation is not a component of GDP is correct, as it does not fit within the primary calculations associated with measuring economic output.