wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Two statements are given in the question below as Assertion (A) and Reason (R).

Read the statements, and choose the appropriate option.

Assertion (A): Not every goods and service produced in the economy must be counted to calculate the Gross Domestic Product.
Reason (R): The value of intermediate goods and services will be reflected in the value of the final goods and services.

[0.8 marks]

A
Both A and R are true, and R is the correct explanation of A.
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
Both A and R are true, but R is not the correct explanation of A.
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
A is true, but R is false.
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
A is false, but R is true.
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is A Both A and R are true, and R is the correct explanation of A.
Gross Domestic Product (GDP) is the value of all the final goods and services produced within a country in a year. The value of intermediate goods will not be included in the calculation of GDP. For example, the value of wheat flour, sugar, and other ingredients and services used to make a biscuit will be reflected in the biscuit’s price itself.

flag
Suggest Corrections
thumbs-up
4
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Valuation of Goods and Services
ECONOMICS
Watch in App
Join BYJU'S Learning Program
CrossIcon