What does GDP mainly measure?
Answer and explanation
Correct answer: The value of final goods and services produced within a country's domestic territory
GDP is the monetary value of all final goods and services produced within a country’s domestic territory during a specified period, usually a year or quarter. The word “final” prevents double counting of intermediate goods. GDP therefore records production and economic activity, not happiness, equality, or environmental quality. Hence option A is correct, while B, C, and D are broader welfare dimensions that GDP does not directly measure.
Frequently asked questions
What is the correct answer to this question?
The value of final goods and services produced within a country's domestic territory
Why is this the correct answer?
GDP is the monetary value of all final goods and services produced within a country’s domestic territory during a specified period, usually a year or quarter. The word “final” prevents double counting of intermediate goods. GDP therefore records production and economic activity, not happiness, equality, or environmental quality. Hence option A is correct, while B, C, and D are broader welfare dimensions that GDP does not directly measure.
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.
