Gross Domestic Product at Market Price is the?
- Gross Domestic Product at market price less net product taxes.
- Market value of all final goods and services produced within a domestic territory of a country measured in a given financial year.
- Expenditure to maintain the current GDP level.
- Income earned by factors in the form of interest, profit, wages within the domestic territory of a country.
Gross Domestic Product at Market Price is the?
- Gross Domestic Product at market price less net product taxes.
- Market value of all final goods and services produced within a domestic territory of a country measured in a given financial year.
- Expenditure to maintain the current GDP level.
- Income earned by factors in the form of interest, profit, wages within the domestic territory of a country.
Solution
Option 1 -> This describes GDP at Factor Cost (GDP MP minus net indirect taxes), not GDP at Market Price.
Option 2 -> This correctly defines GDP at Market Price as the total market value of final goods and services produced domestically in a year.
Option 3 -> This refers to depreciation or capital consumption allowance, not GDP.
Option 4 -> This describes National Income or GDP at Factor Cost (factor incomes), not GDP at Market Price.
Hence, Option 2: Market value of all final goods and services produced within a domestic territory of a country measured in a given financial year -> GDP at Market Price is the monetary measure of the market value of all final goods and services produced within the geographical boundaries of a country during a specific time period (usually a year). It includes indirect taxes and excludes subsidies, hence valued at market prices. It considers only final goods to avoid double counting and focuses on domestic territory (not nationality of factors). -> correct
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