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    Question

    Which of the following best captures the purpose of

    Gross Value Added (GVA)?
    A It measures the income of government employees. Correct Answer Incorrect Answer
    B It reflects the total consumption in an economy. Correct Answer Incorrect Answer
    C It measures sector-wise contribution to GDP. Correct Answer Incorrect Answer
    D It measures household disposable income. Correct Answer Incorrect Answer
    E It captures the flow of foreign remittances. Correct Answer Incorrect Answer

    Solution

    GVA denotes the value of output minus intermediate consumption in each sector—agriculture, industry, and services. Summed across sectors and adjusted for taxes/subsidies, it yields GDP. It’s used to gauge structural transformation and productivity across sectors, which helps RBI and policymakers identify sources of growth.

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