SSC
INDIAN ECONOMY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Not every good (or service) that is produced and sold needs to be counted. It makes sense only to include the ____ to get the total production?
|
|
values of goods and services in production
|
|
|
final goods and services
|
|
|
adding up the actual numbers of goods
|
|
|
goods and services in the three sectors
|
Explanation:
Detailed explanation-1: -If this is the case, the GDP will be inflated due to double counting. All intermediate items are already included in the value of final goods. It is simply logical to include the final goods.
Detailed explanation-2: -The assertion (A): Intermediate goods are used up in producing final goods and services. Reason (R): The value of final goods does not include the value of all the Intermediate goods that are used in making the final goods. The above statement is true in light of the calculation of GDP (Gross Domestic Product).
There is 1 question to complete.