ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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GDP includes harmful economic activities and the income spent in combating such activities
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GDP does not include environmental damage considerations or informal market activities
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GDP counts volunteer work in national income statistics
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GDP does not provide insight into income distribution
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Detailed explanation-1: -The gross domestic product is the total monetary or market worth of all finished goods and services produced within the borders of a nation in a given time period. Gross Domestic Product does not include the value of final goods and services produced in the transboundary of a country. Hence statement 1 is incorrect.
Detailed explanation-2: -Not all productive activity is included in GDP. For example, unpaid work (such as that performed in the home or by volunteers) and black-market activities are not included because they are difficult to measure and value accurately.
Detailed explanation-3: -Some of the items that are not included in the measurement of National Income are as follows: Services of housewives (Care Economy) Black money. Capital gains.
Detailed explanation-4: -Only newly produced goods-including those that increase inventories-are counted in GDP. Sales of used goods and sales from inventories of goods that were produced in previous years are excluded. Only goods that are produced and sold legally, in addition, are included within our GDP.