Question

In the question given below, there are two statements marked as Assertion (A) and Reason 1 (R). Read the statements and chose the correct option:
Assertion (A): Not every good or service that is produced and sold needs to be counted to know the total production in each sector.
Reason (R): The value of final goods already includes the value of all the intermediate goods.
Options:
a. Both A and R are true and R is the correct explanation of A.
b. Both A and R are true but R is not the correct explanation of A.
c. A is correct but R is wrong.
d. A is wrong but R is correct.

Answer 1

Answer:

a. Both A and R are true and R is the correct explanation of A.

Answer 2

Both A and R are true and R is the correct explanation of A.

Answer: Option (a)

Explanation:

• Option (a) is correct stating that both A and R are true and R is the correct explanation of A further stating not every good or service that is produced and sold needs to be counted to know the total production in each sector as the value of final goods already includes the value of all the intermediate goods.
• The final product does contain the addition of everything which was required in the process of making the final product.
• For example, while producing a drawing by an artist, the colors, paper etc. along with his expertise is used.
• The artist would look into everything and then comes to a final price.