Class 12 Exam > Class 12 Questions > What is GDPa)Value of all final goods and ser...
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What is GDP
- a)Value of all final goods and services produced within the domestic territory of the country over one year period
- b)Value of all intermediate goods and services produced within the domestic territory of the country over one year period
- c)Value of all final goods and services produced within the domestic territory of the country over ten year period
- d)Value of all final goods and services produced within the national territory of the country over one year period
Correct answer is option 'A'. Can you explain this answer?
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What is GDPa)Value of all final goods and services produced within the...
Gross Domestic Product (GDP) is the broadest quantitative measure of a nation's total economic activity. More specifically, GDP represents the monetary value of all goods and services produced within a nation's geographic borders over a specified period of time.
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What is GDPa)Value of all final goods and services produced within the...
The correct answer is option 'A': Value of all final goods and services produced within the domestic territory of the country over one year period.
Explanation:
Gross Domestic Product (GDP) is a measure of the total value of all final goods and services produced within the domestic territory of a country over a specific time period, usually one year. It is used to gauge the economic performance and growth of a nation.
Components of GDP:
GDP is composed of various components that represent different sectors of the economy. These components include:
1. Consumption: This refers to the total spending by households on goods and services during the given period. It includes both durable goods (such as cars and appliances) and non-durable goods (such as food and clothing).
2. Investment: Investment represents the spending by businesses on capital goods, such as machinery, equipment, and infrastructure, in order to increase production and improve productivity. It also includes residential investment, which refers to the construction of new homes.
3. Government Spending: This component includes all government expenditures on goods and services, such as public infrastructure, defense, education, and healthcare. It represents the contribution of the government to the overall economy.
4. Net Exports: Net exports represent the difference between a country's exports and imports. If a country's exports exceed its imports, it has a trade surplus, which contributes positively to GDP. Conversely, if a country's imports exceed its exports, it has a trade deficit, which negatively affects GDP.
Final Goods and Services:
The GDP calculation only includes the value of final goods and services. Final goods are those that are consumed by the end-user and do not undergo further processing or production. Intermediate goods, on the other hand, are used as inputs in the production process and are not directly consumed.
For example, if a bakery purchases flour to produce bread, the value of the flour is not included in GDP because it is an intermediate good. However, the value of the bread sold to consumers is included in GDP as a final good.
Domestic Territory:
GDP measures the economic activity that occurs within the domestic territory of a country, regardless of whether the production is carried out by domestic or foreign entities. It includes all economic activities that take place within the country's borders, regardless of the nationality of the producers.
Time Period:
GDP is typically measured over a one-year period, although it can also be calculated on a quarterly or monthly basis. The chosen time period allows for comparisons and analysis of economic performance over time.
In conclusion, GDP represents the value of all final goods and services produced within the domestic territory of a country over a specific time period, usually one year. It is a comprehensive measure of economic activity and is composed of consumption, investment, government spending, and net exports.
Explanation:
Gross Domestic Product (GDP) is a measure of the total value of all final goods and services produced within the domestic territory of a country over a specific time period, usually one year. It is used to gauge the economic performance and growth of a nation.
Components of GDP:
GDP is composed of various components that represent different sectors of the economy. These components include:
1. Consumption: This refers to the total spending by households on goods and services during the given period. It includes both durable goods (such as cars and appliances) and non-durable goods (such as food and clothing).
2. Investment: Investment represents the spending by businesses on capital goods, such as machinery, equipment, and infrastructure, in order to increase production and improve productivity. It also includes residential investment, which refers to the construction of new homes.
3. Government Spending: This component includes all government expenditures on goods and services, such as public infrastructure, defense, education, and healthcare. It represents the contribution of the government to the overall economy.
4. Net Exports: Net exports represent the difference between a country's exports and imports. If a country's exports exceed its imports, it has a trade surplus, which contributes positively to GDP. Conversely, if a country's imports exceed its exports, it has a trade deficit, which negatively affects GDP.
Final Goods and Services:
The GDP calculation only includes the value of final goods and services. Final goods are those that are consumed by the end-user and do not undergo further processing or production. Intermediate goods, on the other hand, are used as inputs in the production process and are not directly consumed.
For example, if a bakery purchases flour to produce bread, the value of the flour is not included in GDP because it is an intermediate good. However, the value of the bread sold to consumers is included in GDP as a final good.
Domestic Territory:
GDP measures the economic activity that occurs within the domestic territory of a country, regardless of whether the production is carried out by domestic or foreign entities. It includes all economic activities that take place within the country's borders, regardless of the nationality of the producers.
Time Period:
GDP is typically measured over a one-year period, although it can also be calculated on a quarterly or monthly basis. The chosen time period allows for comparisons and analysis of economic performance over time.
In conclusion, GDP represents the value of all final goods and services produced within the domestic territory of a country over a specific time period, usually one year. It is a comprehensive measure of economic activity and is composed of consumption, investment, government spending, and net exports.
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What is GDPa)Value of all final goods and services produced within the domestic territory of the country over one year periodb)Value of all intermediate goods and services produced within the domestic territory of the country over one year periodc)Value of all final goods and services produced within the domestic territory of the country over ten year periodd)Value of all final goods and services produced within the national territory of the country over one year periodCorrect answer is option 'A'. Can you explain this answer?
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What is GDPa)Value of all final goods and services produced within the domestic territory of the country over one year periodb)Value of all intermediate goods and services produced within the domestic territory of the country over one year periodc)Value of all final goods and services produced within the domestic territory of the country over ten year periodd)Value of all final goods and services produced within the national territory of the country over one year periodCorrect answer is option 'A'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about What is GDPa)Value of all final goods and services produced within the domestic territory of the country over one year periodb)Value of all intermediate goods and services produced within the domestic territory of the country over one year periodc)Value of all final goods and services produced within the domestic territory of the country over ten year periodd)Value of all final goods and services produced within the national territory of the country over one year periodCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is GDPa)Value of all final goods and services produced within the domestic territory of the country over one year periodb)Value of all intermediate goods and services produced within the domestic territory of the country over one year periodc)Value of all final goods and services produced within the domestic territory of the country over ten year periodd)Value of all final goods and services produced within the national territory of the country over one year periodCorrect answer is option 'A'. Can you explain this answer?.
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