10 percent of the total food grains produced in a country during a year gets damaged due to poor storage.Which of the following will happen in this case?
A) The market value of the damaged food grains will be deducted from the country's GDP for that year.
B) The market value of the damaged food grains will not be considered while calculating the country's GDP for that year.
C) The country's trade surplus will increase.
D) The country's imports will fall.

Question

Quizplus · Accepted Answer

The market value of the damaged food grains will not be considered while calculating the country's GDP for that year. This is because GDP only measures the value of goods and services that are produced and sold in the market. Since the damaged food grains did not reach the market, they do not contribute to the country's economic activity and hence are not included in the calculation of GDP.

10 Percent of the Total Food Grains Produced in a Country