Question : Assertion: Gross Domestic Product (GDP) measures the value of all final goods and services produced within the domestic territory of a country during a specific period.
Reason: GDP includes the value of intermediate goods and services used in the production process.
Option 1: Both Assertion and Reason are true, and the Reason is the correct explanation of the Assertion.
Option 2: Both Assertion and Reason are true, but the Reason is not the correct explanation of the Assertion.
Option 3: Assertion is true, but the Reason is false.
Option 4: Assertion is false, but the Reason is true.
Correct Answer: Both Assertion and Reason are true, but the Reason is not the correct explanation of the Assertion.
Solution : The correct answer is (b) Both Assertion and Reason are true, but the Reason is not the correct explanation of the Assertion.
The Assertion is true. GDP is indeed a measure of the total value of all final goods and services produced within the domestic territory of a country during a specific period. It represents the overall economic activity within the country.
The Reason is also true. GDP does include the value of intermediate goods and services used in the production process. However, the Reason does not provide a correct explanation for the Assertion. While GDP includes the value of intermediate goods and services, it focuses on the final goods and services produced rather than the intermediates themselves. GDP accounts for the value added at each stage of production to avoid double counting, and it only includes the final value of goods and services.
Therefore, the correct answer is b) Both Assertion and Reason are true, but the Reason is not the correct explanation of the Assertion
Question : Statement 1: Gross Domestic Product (GDP) is a measure of the total output of final goods and services produced within a country's borders.
Statement 2: GDP excludes the value of intermediate goods and services used in production.
Option 1: Statement 1 is true, and Statement 2 is false.
Option 2: Statement 1 is false, and Statement 2 is true.
Option 3: Both Statement 1 and Statement 2 are true.
Option 4: Both Statement 1 and Statement 2 are false.
Question : Which of the following are true?
Option 1: Both are true.
Option 2: Both are false.
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 1 is false and statement 2 is true.
Question : The value added of a firm is calculated as___________.
Option 1: value of production of the firm - value of intermediate goods used by the firm.
Option 2: value of production of the firm + value of capital goods used by the firm.
Option 3: value of production of the firm / value of intermediate goods used by the firm.
Option 4: value of production of the firm + value of intermediate goods used by the firm.
Question : The value added at different stages of production in an economy is as follows (in INR):
Stage 1: INR 400,000
Stage 2: INR 300,000
Stage 3: INR 200,000
If the total value of intermediate consumption is INR 250,000, what is the value of final goods produced in the economy?
Option 1: INR 650,000
Option 2: INR 750,000
Option 3: INR 850,000
Option 4: INR 950,000
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