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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.

 

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.


Team Careers360 15th Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: Statement 1 is true, and Statement 2 is false.


Solution : The correct answer is (a) Statement 1 is true, and Statement 2 is false.

Statement 1 is true. Gross Domestic Product (GDP) is indeed a measure of the total output of final goods and services produced within a country's borders. It represents the value of all goods and services produced by an economy in a specific period.

Statement 2 is false. GDP includes the value of intermediate goods and services used in production. Intermediate goods are those that are used as inputs in the production process and are not sold directly to the final consumers. The value of these intermediate goods is included in GDP to avoid double-counting and accurately measure the value of final goods and services.

Therefore, Statement 1 is true, and Statement 2 is false.

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