ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -GDP measures the monetary value of final goods and services-that is, those that are bought by the final user-produced in a country in a given period of time (say a quarter or a year). It counts all of the output generated within the borders of a country.

Detailed explanation-2: -Total output can be measured two ways: as the sum of the values of final goods and services produced and as the sum of values added at each stage of production. GDP plus net income received from other countries equals GNP. GNP is the measure of output typically used to compare incomes generated by different economies.

Detailed explanation-3: -The most comprehensive measure of overall economic performance is gross domestic product or GDP, which measures the “output” or total market value of goods and services produced in the domestic economy during a particular time period.

Detailed explanation-4: -The most common measure of the economy is called gross domestic product (or GDP). GDP measures the total market value of all final goods and services produced in an economy in a given year.

Detailed explanation-5: -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).