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Social Science (087) — AI-generated practice question

AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.

Q1. [1] straightforward exam-ready
Why are only final goods and services counted while calculating GDP? Options: (A) Intermediate goods are not sold in the market (B) The value of final goods already includes the value of all intermediate goods used in their production (C) Intermediate goods are produced in the primary sector only (D) Final goods are always more expensive than intermediate goods
  1. A Intermediate goods are not sold in the market
  2. B The value of final goods already includes the value of all intermediate goods used in their production
  3. C Intermediate goods are produced in the primary sector only
  4. D Final goods are always more expensive than intermediate goods
Generated by claude-sonnet-4-6 · 2026-06-26 13:21 · grounding rag
Model Answer

(B) The value of final goods already includes the value of all intermediate goods used in their production

Explanation

The textbook explicitly states: "The value of final goods already includes the value of all the intermediate goods that are used in making the final good." Counting intermediate goods separately would mean counting the same value multiple times (double counting). For MCQs, simply identifying the correct option is sufficient — no explanation needed unless asked.

Source: Comparing the Three Sectors, Chapter 2

Previous-year CBSE Grade 10 board exam questions, organised by subject and chapter, each with a model answer — free to read and print.