Which is an essential feature of production included in GDP?
Answer and explanation
Correct answer: It must occur within domestic territory during the specified period
GDP is the market value of final goods and services produced within a country’s domestic territory during a specified accounting period. The producer need not be the government, and production need not be agricultural. Foreign production is not included merely because it belongs to residents. Hence option D correctly states both the location and time requirements.
Frequently asked questions
What is the correct answer to this question?
It must occur within domestic territory during the specified period
Why is this the correct answer?
GDP is the market value of final goods and services produced within a country’s domestic territory during a specified accounting period. The producer need not be the government, and production need not be agricultural. Foreign production is not included merely because it belongs to residents. Hence option D correctly states both the location and time requirements.
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.
