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
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