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Question

With reference to the Gross Domestic Product (GDP), select the correct statement from option given below:

A For effective measurement, it is also calculated only by adding national private consumption, trade balance (exportsminus imports) and government spending. Correct Answer Incorrect Answer
B The use of the exports-minus-imports factor, is to add the expenditures on imports not produced in the nation only. Correct Answer Incorrect Answer
C Gross, means the same thing in Economics and Commerce as ‘total’ means in Mathematics. Correct Answer Incorrect Answer
D GDP is a qualitative concept and its growth indicates development. Correct Answer Incorrect Answer

Solution

Option A incorrect: Gross Domestic Product (GDP) is the value of all final goods and services produced within the boundary of a nation during one year period. For India, this calendar year is from 1st April to 31st March. It is also calculated by adding national private consumption, gross investment, government spending and trade balance (exports-minus imports).

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