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Assertion (A): GDP includes the value of final goods and services only. Reason (R): Including intermediate goods would lead to double counting.

1. Both A and R are true, and R is the correct explanation of A.
2. Both A and R are true, but R is not the correct explanation of A.
3. A is true, but R is false.
4. A is false, but R is true.

Correct answer: Both A and R are true, and R is the correct explanation of A.

Solution

GDP measures the market value of final goods and services produced in an economy. Intermediate goods are excluded because counting them would result in double counting. Therefore, both statements are true and the reason correctly explains the assertion.

Related SSC CGL (Prelims) General questions

• Assertion (A): Iron and steel qualifies as a heavy industry. Reason (R): It uses lightweight inputs such as cotton and rubber.
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• Which of the following industries is classified as a heavy industry?
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• Assertion (A): GDP does not fully reflect income distribution. Reason (R): GDP measures total output, not equality.

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