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Which statements about Gross Domestic Product (GDP) are /are correct?
1. GDP is the total value of all final goods and services that are sold in a given year.
2. In GDP estimates, the value of intermediary goods is not included at all.
3. GDP is a quantitative concept.
4. GDP measures growth but not progress.
Select the correct answer from the options given below:
1. GDP is the total value of all final goods and services that are sold in a given year.
2. In GDP estimates, the value of intermediary goods is not included at all.
3. GDP is a quantitative concept.
4. GDP measures growth but not progress.
Select the correct answer from the options given below:
- a)1 and 4 only
- b)1, 2 and 3 only
- c)2, 3 and 4 only
- d)1, 2, 3 and 4
Correct answer is option 'C'. Can you explain this answer?
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Verified Answer
Which statements about Gross Domestic Product (GDP) are /are correct?1...
GDP is the total value of all goods and services produced in a country in a given year irrespective of them being sold or not.
Intermediate goods are not included in the calculation of a country's GDP. The reason for not including them in the GDP is because it will lead to counting the value of the goods twice, and the norm is to count the price of final goods only once.
GDP is a measure of growth and not progress: GDP indicates growth that is quantitative. Qualitative aspects such as development, progress and well being are not taken in to account.
Intermediate goods are not included in the calculation of a country's GDP. The reason for not including them in the GDP is because it will lead to counting the value of the goods twice, and the norm is to count the price of final goods only once.
GDP is a measure of growth and not progress: GDP indicates growth that is quantitative. Qualitative aspects such as development, progress and well being are not taken in to account.
Most Upvoted Answer
Which statements about Gross Domestic Product (GDP) are /are correct?1...
The correct answer is option 'C' - 2, 3 and 4 only.
Gross Domestic Product (GDP) is a commonly used measure of the economic performance of a country. Let's analyze each statement to understand why option 'C' is the correct answer.
1. GDP is the total value of all final goods and services that are sold in a given year.
This statement is correct. GDP measures the total value of all final goods and services produced within a country's borders in a specific time period, usually a year. It includes both goods (such as cars, clothing, and electronics) and services (such as healthcare, education, and transportation) that are sold to households, businesses, and the government.
2. In GDP estimates, the value of intermediary goods is not included at all.
This statement is incorrect. GDP only includes the value of final goods and services, not intermediary goods. Intermediary goods are those that are used in the production process but are not sold directly to consumers. For example, if a car manufacturer purchases tires from a tire company, the value of those tires will not be included in GDP, as they are considered intermediary goods. Only the final value of the car sold to a consumer will be included in GDP.
3. GDP is a quantitative concept.
This statement is correct. GDP is a quantitative measure that provides a numerical value representing the size of an economy. It is usually expressed in monetary terms (such as dollars or euros) and allows for comparisons over time or between different countries.
4. GDP measures growth but not progress.
This statement is correct. GDP is often used as a proxy for economic progress or well-being, but it has limitations. GDP measures the value of economic activity but does not take into account factors such as income distribution, environmental sustainability, or overall quality of life. Therefore, while GDP can indicate economic growth, it does not capture all aspects of progress or welfare in a society.
In conclusion, statements 2, 3, and 4 are correct, making option 'C' the correct answer.
Gross Domestic Product (GDP) is a commonly used measure of the economic performance of a country. Let's analyze each statement to understand why option 'C' is the correct answer.
1. GDP is the total value of all final goods and services that are sold in a given year.
This statement is correct. GDP measures the total value of all final goods and services produced within a country's borders in a specific time period, usually a year. It includes both goods (such as cars, clothing, and electronics) and services (such as healthcare, education, and transportation) that are sold to households, businesses, and the government.
2. In GDP estimates, the value of intermediary goods is not included at all.
This statement is incorrect. GDP only includes the value of final goods and services, not intermediary goods. Intermediary goods are those that are used in the production process but are not sold directly to consumers. For example, if a car manufacturer purchases tires from a tire company, the value of those tires will not be included in GDP, as they are considered intermediary goods. Only the final value of the car sold to a consumer will be included in GDP.
3. GDP is a quantitative concept.
This statement is correct. GDP is a quantitative measure that provides a numerical value representing the size of an economy. It is usually expressed in monetary terms (such as dollars or euros) and allows for comparisons over time or between different countries.
4. GDP measures growth but not progress.
This statement is correct. GDP is often used as a proxy for economic progress or well-being, but it has limitations. GDP measures the value of economic activity but does not take into account factors such as income distribution, environmental sustainability, or overall quality of life. Therefore, while GDP can indicate economic growth, it does not capture all aspects of progress or welfare in a society.
In conclusion, statements 2, 3, and 4 are correct, making option 'C' the correct answer.
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Which statements about Gross Domestic Product (GDP) are /are correct?1. GDP is the total value of all final goods and services that are sold in a given year.2. In GDP estimates, the value of intermediary goods is not included at all.3. GDP is a quantitative concept.4. GDP measures growth but not progress.Select the correct answer from the options given below:a)1 and 4 onlyb)1, 2 and 3 onlyc)2, 3 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'C'. Can you explain this answer?
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Which statements about Gross Domestic Product (GDP) are /are correct?1. GDP is the total value of all final goods and services that are sold in a given year.2. In GDP estimates, the value of intermediary goods is not included at all.3. GDP is a quantitative concept.4. GDP measures growth but not progress.Select the correct answer from the options given below:a)1 and 4 onlyb)1, 2 and 3 onlyc)2, 3 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which statements about Gross Domestic Product (GDP) are /are correct?1. GDP is the total value of all final goods and services that are sold in a given year.2. In GDP estimates, the value of intermediary goods is not included at all.3. GDP is a quantitative concept.4. GDP measures growth but not progress.Select the correct answer from the options given below:a)1 and 4 onlyb)1, 2 and 3 onlyc)2, 3 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which statements about Gross Domestic Product (GDP) are /are correct?1. GDP is the total value of all final goods and services that are sold in a given year.2. In GDP estimates, the value of intermediary goods is not included at all.3. GDP is a quantitative concept.4. GDP measures growth but not progress.Select the correct answer from the options given below:a)1 and 4 onlyb)1, 2 and 3 onlyc)2, 3 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'C'. Can you explain this answer?.
Which statements about Gross Domestic Product (GDP) are /are correct?1. GDP is the total value of all final goods and services that are sold in a given year.2. In GDP estimates, the value of intermediary goods is not included at all.3. GDP is a quantitative concept.4. GDP measures growth but not progress.Select the correct answer from the options given below:a)1 and 4 onlyb)1, 2 and 3 onlyc)2, 3 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which statements about Gross Domestic Product (GDP) are /are correct?1. GDP is the total value of all final goods and services that are sold in a given year.2. In GDP estimates, the value of intermediary goods is not included at all.3. GDP is a quantitative concept.4. GDP measures growth but not progress.Select the correct answer from the options given below:a)1 and 4 onlyb)1, 2 and 3 onlyc)2, 3 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which statements about Gross Domestic Product (GDP) are /are correct?1. GDP is the total value of all final goods and services that are sold in a given year.2. In GDP estimates, the value of intermediary goods is not included at all.3. GDP is a quantitative concept.4. GDP measures growth but not progress.Select the correct answer from the options given below:a)1 and 4 onlyb)1, 2 and 3 onlyc)2, 3 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'C'. Can you explain this answer?.
Solutions for Which statements about Gross Domestic Product (GDP) are /are correct?1. GDP is the total value of all final goods and services that are sold in a given year.2. In GDP estimates, the value of intermediary goods is not included at all.3. GDP is a quantitative concept.4. GDP measures growth but not progress.Select the correct answer from the options given below:a)1 and 4 onlyb)1, 2 and 3 onlyc)2, 3 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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