BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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goods produced in an economy in a year
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goods and services in an economy in a year
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final goods produced in economy in a year
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final goods and services produced in an economy in a year
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Detailed explanation-1: -Gross domestic product (GDP) is the standard measure of the value added created through the production of goods and services in a country during a certain period. As such, it also measures the income earned from that production, or the total amount spent on final goods and services (less imports).
Detailed explanation-2: -The GDP is the total of all value added created in an economy. The value added means the value of goods and services that have been produced minus the value of the goods and services needed to produce them, the so called intermediate consumption.
Detailed explanation-3: -Real GDP in economics can be defined as the monetary value of all the final produced services and products measured at constant prices in the given fiscal year. Thus, it can be inferred that real GDP is measured on constant prices.
Detailed explanation-4: -GDP is a measurement of the market value of all final goods and services produced in the economy. The reason why these goods are not part of the calculation is that they would be counted twice.