Consider the following statements about Gross Domestic Product I. It is the market value of all final goods and services made within the borders of a nation in a year. II. It is equal to the total expenditures for all final goods and services produces wit

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Q: 85 (CDS-II/2009)
Consider the following statements about Gross Domestic Product
I. It is the market value of all final goods and services made within the borders of a nation in a year.
II. It is equal to the total expenditures for all final goods and services produces within the country in a stipulated period of time.
Which of the statements given above is/are corrcet?

question_subject: 

Economics

question_exam: 

CDS-II

stats: 

0,43,31,21,9,43,1

keywords: 

{'gross domestic product': [0, 0, 1, 3], 'total expenditures': [0, 0, 1, 0], 'final goods': [0, 0, 1, 1], 'market value': [0, 0, 1, 0], 'stipulated period': [0, 0, 1, 0]}

Gross Domestic Product (GDP) is a measure of the economic activity within a country. It is the market value of all final goods and services produced within the borders of a nation in a specific period of time, usually a year.

The first statement is correct. GDP represents the total value of all final goods and services, meaning that it includes only the end products and not the intermediate goods that contribute to their production. It is measured by adding up the values of all final goods and services produced within the country.

The second statement is also correct. GDP can be measured by summing up the total expenditures on all final goods and services produced within the country. This includes consumption expenditures by households, investment expenditures by businesses, government spending, and net exports (exports minus imports).

Therefore, both statements are correct. GDP is the market value of all final goods and services produced within the country, and it can be measured by totaling the expenditures on these goods and services.