Consider the following statements regarding the Gross Domestic Product:
1. It measures quantity but not the quality of goods and services produced.
2. It does not reflect how wealth is distributed within a country.
3. It does not reflect economic productivity.

Which of the statements given above are correct ?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Question

Consider the following statements regarding the Gross Domestic Product:
1. It measures quantity but not the quality of goods and services produced.
2. It does not reflect how wealth is distributed within a country.
3. It does not reflect economic productivity.

Which of the statements given above are correct ?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

ONLiNE UPSC · Accepted Answer

Statement 1 is correct : GDP quantifies the total value of goods and services produced in a country but does not account for their quality.

Statement 2 is correct : GDP measures the overall economic output but does not provide any information about the distribution of income or wealth among the population.

Statement 3 is not correct : GDP is often used as a measure of economic productivity, especially when considered on a per capita basis (GDP per capita). It reflects the total output produced by the factors of production in an economy.

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M Question 1	⏱ 0
Consider the following statements regarding the Gross Domestic Product: 1. It measures quantity but not the quality of goods and services produced. 2. It does not reflect how wealth is distributed within a country. 3. It does not reflect economic productivity. Which of the statements given above are correct ? (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3