Question : Statement 1: Gross Domestic Product (GDP) measures the value of all final goods and services produced within a country's borders.
Statement 2: Gross National Product (GNP) measures the value of all final goods and services produced by a country's residents, regardless of their location.
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.
Correct Answer: Both Statement 1 and Statement 2 are true.
Solution : The correct answer is (c) Both Statement 1 and Statement 2 are true.
Statement 1 is true. Gross Domestic Product (GDP) does measure the value of all final goods and services produced within a country's borders. It captures the total economic output generated within the geographical boundaries of a country, regardless of whether the production is carried out by domestic or foreign entities.
Statement 2 is also true. Gross National Product (GNP) does measure the value of all final goods and services produced by a country's residents, regardless of their location. It takes into account the production by the country's residents, whether they are located within the country or abroad. GNP considers the earnings of residents from their productive activities, regardless of where those activities take place.
Therefore, both Statement 1 and Statement 2 are true.
Question : Statement 1: Net National Product (NNP) represents the value of final goods and services produced by a country's residents during a specific period.
Statement 2: NNP is obtained by deducting depreciation from Gross National Product (GNP).
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.
Question : Statement 1: National income is an important measure of a country's economic performance.
Statement 2: National income reflects the total value of goods and services produced within a country's borders during a specific period.
Question : Assertion: Gross National Product (GNP) includes the value of goods and services produced by domestic residents within and outside the country.
Reason: GNP measures the total output of goods and services generated by the factors of production owned by a country's residents, regardless of their location.
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.
Question : ______ is the market value of all final goods and services produced within a domestic territory of a country measured in a year.
Option 1: Gross margin
Option 2: Gross Domestic Product (GDP)
Option 3: Net National Product (NNP)
Option 4: Gross National Product (GNP)
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