Question 69
HardOriginal questionIn a two-firm economy, firm A sells raw materials worth ₹300 to firm B and goods worth ₹200 to households. Firm B sells goods worth ₹700 to households. There are no imports, taxes or stocks. GDP is
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
Value added: A = 300 + 200 = 500 (no inputs); B = 700 − 300 = 400.
GDP = 500 + 400 = ₹900, the same as final sales to households, 200 + 700.
- Concept
- Product and expenditure agree
- Typical timeTypical
- 100 s
- Your timeYours
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