Gross Domestic Product counts the value of final goods and services produced in a year:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → within the country’s borders, whoever owns the firms
GDP is the value of final goods and services produced within a country’s borders in a year, regardless of ownership. A factory owned by foreigners but working in India adds to India’s GDP.
Counting what the country’s people earn abroad belongs to national product, which adds income from abroad. GDP covers all goods produced, not only exports or government output.
NCERT (2026-27): Glossary: “Gross Domestic Product – The total value of final goods and services produced within a country’s borders in a year, regardless of ownership. It is used as one of many indicators of the standard of living in a country, but there are limitations with this view.” Glossary: “National Product/Income – Total value of goods and services produced in a country plus income from abroad.” |