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.
Frequently asked questions
What is the correct answer to this question?
In monetary value
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.
