← All previous year questions
HCS (Haryana)Prelims2026General Studies
Question
Which of the following is/are correct? 1. GDP is calculated by adding up the value of all final goods and services produced in a country during a given year. 2. Intermediate consumption represents the value of goods and services as inputs in the production process, excluding fixed assets. Select the answer using the codes given below:
Options
- A 1 only
- B 2 only
- C Both 1 and 2
- D Neither 1 nor 2
Show AnswerHide Answer
Correct Answer
C Both 1 and 2
Model Answer
- Gross Domestic Product is the money value of all final goods and services produced within the domestic territory of a country during an accounting year. Only final goods are counted so as to avoid double counting. Hence, statement 1 is correct.
- Intermediate consumption consists of the value of the goods and services which are consumed as inputs in the process of production during the accounting year. It excludes fixed assets, whose consumption is recorded as consumption of fixed capital or depreciation. Hence, statement 2 is correct.
- Gross value added is obtained by deducting intermediate consumption from the value of output, and the sum of the gross value added of all the sectors gives the GDP at basic prices.
- In India the estimates of national income are prepared by the National Statistical Office.