With respect to a country, consider the following:
1. Final Goods
2. Intermediary Goods
3. Value added goods
4. Services
The total market value of which among the above is called Gross Domestic Product?

Answer: [A] Only 1 & 4

Every goods and service has a monetary value. When we combine all products of an entity, we may call it Gross Product. When we combine the monetary value of all the final goods and services produced in the economic territory of a country for a specified time such as a year, this will be called “Gross Domestic Product”. GDP is concerned with the final / finished goods and not the unfinished or intermediate goods.

Unfinished / Intermediate goods are not counted in GDP. This is done to avoid double counting, once in an unfinished form, and once in a finished form.

This question is a part of GKToday's Integrated IAS General Studies Module