Question

Consider the following statements about the Gross Domestic Product (GDP) of India.

(i) Purchase of tomatoes in the making of tomato ketchup
(ii) Value of cotton fabrics
(iii) Final value of bakery items

Identify the statements that should be added to calculate the GDP of the country.

• A. Only (i)
• B. Only (iii)
• C. Both (ii) and (iii)
• D. Both (i) and (ii)

Answer 1

The correct option is C Both (ii) and (iii)

Gross Domestic Product (GDP) is a monetary measure of the market value of all the final goods and services produced in a specific time period. Here, purchase of tomato in the making of tomato ketchup is an example of intermediate goods. Whereas, the value of cotton fabrics and the final value of bakery items are values of the final goods and hence, will be added to calculate the GDP of the country.