ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Dresses
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Screws used in a cruise missile
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Flour for making bread
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Cloth for making dresses
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Detailed explanation-1: -The calculation of a country’s GDP encompasses all private and public consumption, government outlays, investments, additions to private inventories, paid-in construction costs, and the foreign balance of trade. (Exports are added to the value and imports are subtracted).
Detailed explanation-2: -When using the expenditures approach to calculating GDP the components are consumption, investment, government spending, exports, and imports.
Detailed explanation-3: -GDP or GNP? The difference between GDP and GNP is rather technical. GDP includes only goods and services produced by a nation’s own citizens and firms. Goods and services produced outside a nation’s boundaries by the nation’s own citizens and firms are included in GNP but are excluded from GDP.