In the context of Indian economy, which of the following is included in gross domestic product at market price?
I. Production done by national residents in the country
II. Production done by non-residents in the country
Show answer & explanation
Correct answer: C
Explanation
Correct Answer:
Option 3: Both I and II
Explanation:
Gross Domestic Product (GDP) represents the total value of all goods and services produced within a country's geographical boundaries. It includes production undertaken by residents living within the country, as well as by non-residents (foreigners). Its primary basis is location, rather than the nationality of the producer. Therefore, both statements are correct.
Potential Questions for Upcoming Exams:
Question: What is the difference between GDP and GNP?
Answer: GDP is location-based; GNP is nationality-based.
Question: What is the full form of GDP?
Answer: Gross Domestic Product
Question: What is National Income?
Answer: Total Income
Question: What is Per Capita Income?
Answer: Average Income