Question

Read the following statements carefully:

Statement 1: Gross Domestic Product (GDP) is the sum total of the gross market value of all the final goods and services added by all the sectors in the economy during a fiscal year.

Statement 2: Gross Value Added at Market Price (GVA_MP) is equal to the excess of value of output over intermediate consumption.

In the light of the given statements, choose the correct alternative from the following.

Options

• Statement 1 is true and Statement 2 is false.

• Statement 1 is false and Statement 2 is true.

• Both Statements 1 and 2 are true.

• Both Statements 1 and 2 are false.

Answer 1

Both Statements 1 and 2 are true.

Explanation:

Gross Domestic Product (GDP) is the sum of market value of all the final goods and services produced in the domestic boundary of a country in an accounting year.

And GVA_MP = Value of Output − Intermediate consumption