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In what form is the value of goods and services added to GDP?

Answer and explanation

Correct answer: In monetary value

GDP combines the output of very different goods and services, such as food, transport and education. Because physical units cannot be added meaningfully across these categories, their values are expressed in money using prices and then aggregated. Therefore, option B is correct. Physical units, labour hours and population ratios can be separate indicators, but they are not the common form of GDP valuation.

Related tags

Gdp MeasurementMonetary ValueNational OutputPricesGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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