UPSC Exam > UPSC Questions > Which of the following is/are correct with r...
Start Learning for Free
Which of the following is/are correct with regard to Gross domestic product (GDP) of a country?
It is the sum total of the value of goods and services created within the geographical boundary of a country in a particular year.
Non-monetary exchanges such as barter exchange are not included in the GDP estimation.
A rise in GDP indicates that all the residents of the country are better off today than in the past.
Select the correct answer using the code given below.
- a)1 only
- b)2 and 3 only
- c)1 and 2 only
- d)1 and 3 only
Correct answer is option 'C'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
Which of the following is/are correct with regard to Gross domestic p...
- Gross Domestic Product is the sum total of value of goods and services created within the geographical boundary of a country in a particular year. It gets distributed among the people as incomes (except for retained earnings). Hence, statement 1 is correct.
- If the GDP of the country is rising, the welfare may not rise as a consequence. This is because the rise in GDP may be concentrated in the hands of very few individuals or firms. For the rest, the income may in fact have fallen. In such a case the welfare of the entire country cannot be said to have increased. For example, suppose in year 2000, an imaginary country had 100 individuals each earning Rs 10. Therefore the GDP of the country was Rs 1,000 (by income method). In 2001, let us suppose the same country had 90 individuals earning Rs 9 each, and the rest 10 individual earning Rs 20 each. Suppose there had been no change in the prices of goods and services between these two periods. The GDP of the country in the year 2001 was 90 × (Rs 9) + 10 × (Rs 20) = Rs 810 + Rs 200 = Rs 1,010. Observe that compared to 2000, the GDP of the country in 2001 was higher by Rs10. But this has happened when 90 per cent of people of the country have seen a drop in their real income by 10 per cent (from Rs 10 to Rs 9), whereas only 10 per cent have benefited by a rise in their income by 100 per cent (from Rs 10 to Rs 20). 90 per cent of the people are worse off though the GDP of the country has gone up. Hence, statement 3 is not correct.
- Many activities in an economy are not evaluated in monetary terms. For example, the domestic services women perform at home are not paid for. The exchanges which take place in the informal sector without the help of money are called barter exchanges. In barter exchanges goods (or services) are directly exchanged against each other. But since money is not being used here, these exchanges are not registered as part of economic activity. In developing countries, where many remote regions are underdeveloped, these kinds of exchanges do take place, but they are generally not counted in the GDPs of these countries. This is a case of underestimation of GDP. Hence, statement 2 is correct.
Free Test
FREE
| Start Free Test |
Community Answer
Which of the following is/are correct with regard to Gross domestic p...
Explanation:
1. It is the sum total of the value of goods and services created within the geographical boundary of a country in a particular year:
- Gross Domestic Product (GDP) measures the total economic output within a country's borders over a specific period, usually a year.
- It includes the value of all goods and services produced in the country, including those produced by foreign-owned companies within the country's borders.
2. Non-monetary exchanges such as barter exchange are not included in the GDP estimation:
- GDP only considers monetary transactions, where goods and services are exchanged for money.
- Barter exchanges, where goods are exchanged directly for other goods without involving money, are not included in GDP calculations.
3. A rise in GDP indicates that all the residents of the country are better off today than in the past:
- While GDP growth is generally seen as a positive indicator of economic health, it does not necessarily mean that all residents of the country are better off.
- GDP growth could be driven by factors such as increased government spending or investment, which may not directly benefit all residents.
- Inequality within a country can also mean that GDP growth does not necessarily translate to improved living standards for all residents.
Therefore, the correct statement is option 'C', as it correctly identifies the components and limitations of GDP as a measure of economic activity.
1. It is the sum total of the value of goods and services created within the geographical boundary of a country in a particular year:
- Gross Domestic Product (GDP) measures the total economic output within a country's borders over a specific period, usually a year.
- It includes the value of all goods and services produced in the country, including those produced by foreign-owned companies within the country's borders.
2. Non-monetary exchanges such as barter exchange are not included in the GDP estimation:
- GDP only considers monetary transactions, where goods and services are exchanged for money.
- Barter exchanges, where goods are exchanged directly for other goods without involving money, are not included in GDP calculations.
3. A rise in GDP indicates that all the residents of the country are better off today than in the past:
- While GDP growth is generally seen as a positive indicator of economic health, it does not necessarily mean that all residents of the country are better off.
- GDP growth could be driven by factors such as increased government spending or investment, which may not directly benefit all residents.
- Inequality within a country can also mean that GDP growth does not necessarily translate to improved living standards for all residents.
Therefore, the correct statement is option 'C', as it correctly identifies the components and limitations of GDP as a measure of economic activity.
Attention UPSC Students!
To make sure you are not studying endlessly, EduRev has designed UPSC study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in UPSC.
|
Explore Courses for UPSC exam
|
|
Similar UPSC Doubts
Top Courses for UPSCView all
Which of the following is/are correct with regard to Gross domestic product (GDP) of a country? It is the sum total of the value of goods and services created within the geographical boundary of a country in a particular year. Non-monetary exchanges such as barter exchange are not included in the GDP estimation. A rise in GDP indicates that all the residents of the country are better off today than in the past. Select the correct answer using the code given below.a)1 onlyb)2 and 3 onlyc)1 and 2 onlyd)1 and 3 onlyCorrect answer is option 'C'. Can you explain this answer?
Question Description
Which of the following is/are correct with regard to Gross domestic product (GDP) of a country? It is the sum total of the value of goods and services created within the geographical boundary of a country in a particular year. Non-monetary exchanges such as barter exchange are not included in the GDP estimation. A rise in GDP indicates that all the residents of the country are better off today than in the past. Select the correct answer using the code given below.a)1 onlyb)2 and 3 onlyc)1 and 2 onlyd)1 and 3 onlyCorrect 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 of the following is/are correct with regard to Gross domestic product (GDP) of a country? It is the sum total of the value of goods and services created within the geographical boundary of a country in a particular year. Non-monetary exchanges such as barter exchange are not included in the GDP estimation. A rise in GDP indicates that all the residents of the country are better off today than in the past. Select the correct answer using the code given below.a)1 onlyb)2 and 3 onlyc)1 and 2 onlyd)1 and 3 onlyCorrect 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 of the following is/are correct with regard to Gross domestic product (GDP) of a country? It is the sum total of the value of goods and services created within the geographical boundary of a country in a particular year. Non-monetary exchanges such as barter exchange are not included in the GDP estimation. A rise in GDP indicates that all the residents of the country are better off today than in the past. Select the correct answer using the code given below.a)1 onlyb)2 and 3 onlyc)1 and 2 onlyd)1 and 3 onlyCorrect answer is option 'C'. Can you explain this answer?.
Which of the following is/are correct with regard to Gross domestic product (GDP) of a country? It is the sum total of the value of goods and services created within the geographical boundary of a country in a particular year. Non-monetary exchanges such as barter exchange are not included in the GDP estimation. A rise in GDP indicates that all the residents of the country are better off today than in the past. Select the correct answer using the code given below.a)1 onlyb)2 and 3 onlyc)1 and 2 onlyd)1 and 3 onlyCorrect 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 of the following is/are correct with regard to Gross domestic product (GDP) of a country? It is the sum total of the value of goods and services created within the geographical boundary of a country in a particular year. Non-monetary exchanges such as barter exchange are not included in the GDP estimation. A rise in GDP indicates that all the residents of the country are better off today than in the past. Select the correct answer using the code given below.a)1 onlyb)2 and 3 onlyc)1 and 2 onlyd)1 and 3 onlyCorrect 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 of the following is/are correct with regard to Gross domestic product (GDP) of a country? It is the sum total of the value of goods and services created within the geographical boundary of a country in a particular year. Non-monetary exchanges such as barter exchange are not included in the GDP estimation. A rise in GDP indicates that all the residents of the country are better off today than in the past. Select the correct answer using the code given below.a)1 onlyb)2 and 3 onlyc)1 and 2 onlyd)1 and 3 onlyCorrect answer is option 'C'. Can you explain this answer?.
Solutions for Which of the following is/are correct with regard to Gross domestic product (GDP) of a country? It is the sum total of the value of goods and services created within the geographical boundary of a country in a particular year. Non-monetary exchanges such as barter exchange are not included in the GDP estimation. A rise in GDP indicates that all the residents of the country are better off today than in the past. Select the correct answer using the code given below.a)1 onlyb)2 and 3 onlyc)1 and 2 onlyd)1 and 3 onlyCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Which of the following is/are correct with regard to Gross domestic product (GDP) of a country? It is the sum total of the value of goods and services created within the geographical boundary of a country in a particular year. Non-monetary exchanges such as barter exchange are not included in the GDP estimation. A rise in GDP indicates that all the residents of the country are better off today than in the past. Select the correct answer using the code given below.a)1 onlyb)2 and 3 onlyc)1 and 2 onlyd)1 and 3 onlyCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Which of the following is/are correct with regard to Gross domestic product (GDP) of a country? It is the sum total of the value of goods and services created within the geographical boundary of a country in a particular year. Non-monetary exchanges such as barter exchange are not included in the GDP estimation. A rise in GDP indicates that all the residents of the country are better off today than in the past. Select the correct answer using the code given below.a)1 onlyb)2 and 3 onlyc)1 and 2 onlyd)1 and 3 onlyCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for Which of the following is/are correct with regard to Gross domestic product (GDP) of a country? It is the sum total of the value of goods and services created within the geographical boundary of a country in a particular year. Non-monetary exchanges such as barter exchange are not included in the GDP estimation. A rise in GDP indicates that all the residents of the country are better off today than in the past. Select the correct answer using the code given below.a)1 onlyb)2 and 3 onlyc)1 and 2 onlyd)1 and 3 onlyCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of Which of the following is/are correct with regard to Gross domestic product (GDP) of a country? It is the sum total of the value of goods and services created within the geographical boundary of a country in a particular year. Non-monetary exchanges such as barter exchange are not included in the GDP estimation. A rise in GDP indicates that all the residents of the country are better off today than in the past. Select the correct answer using the code given below.a)1 onlyb)2 and 3 onlyc)1 and 2 onlyd)1 and 3 onlyCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Which of the following is/are correct with regard to Gross domestic product (GDP) of a country? It is the sum total of the value of goods and services created within the geographical boundary of a country in a particular year. Non-monetary exchanges such as barter exchange are not included in the GDP estimation. A rise in GDP indicates that all the residents of the country are better off today than in the past. Select the correct answer using the code given below.a)1 onlyb)2 and 3 onlyc)1 and 2 onlyd)1 and 3 onlyCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice UPSC tests.
|
|
Explore Courses for UPSC exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup