Social Science (087) — CBSE Class 10 board question

Definition: Gross Domestic Product (GDP) is the total value of all final goods and services produced within the boundaries of a country during a particular year. Dividing GDP by the country's total population gives the per capita income, which is used to compare the development of different countries.

Importance:

1. GDP per capita (per capita income) is the most common measure used to compare the economic development of nations — for example, the World Bank classifies countries based on per capita income.
2. It gives an idea of the average income and standard of living of people in a country.
3. However, GDP alone is inadequate as it does not reflect distribution of income or other factors like health, education, and quality of life.

Source: Development, Chapter 1

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• The question is split 1 + 2: allocate one sentence to the definition and two clear points to importance.
• The textbook does not define GDP directly but discusses per capita income and National/State Domestic Product as measures of development. Frame your definition around this context.
• Examiners expect you to mention per capita income as a tool derived from GDP, its use by the World Bank, and its limitations as a development indicator — these are all discussed in Chapter 1.
• Do not write a long essay; 3 focused points covering definition + 2 uses/limitations is sufficient for 3 marks.