ECONOMICS (CBSE/UGC NET)

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: -GDP has a lesser known relative, called gross national income (GNI). GDP measures the production of resident entities regardless of nationality within the economy, while GNI includes the income earned outside the economy by national entities and excludes the income earned by foreign nationals in the domestic economy.

Detailed explanation-3: -Gross domestic product measures the total market value of all final goods and services produced within the domestic borders of a nation. The key word here is ‘final. ‘ Final goods include anything that is purchased directly by consumers in the marketplace. For example, a computer sold at a retail store is a final good.

Detailed explanation-4: -GDP is composed of goods and services produced for sale in the market and also includes some nonmarket production, such as defense or education services provided by the government. An alternative concept, gross national product, or GNP, counts all the output of the residents of a country.