Question

Why is Gross Domestic Product (GDP) considered useful for sector-wise economic analysis?

• A. Because it includes income earned by citizens abroad.
• B. Because it excludes the value of intermediate goods.
• C. Because it provides a detailed breakdown of economic activity by sector.
• D. Because it is calculated on a quarterly basis.

Answer 1

Answer:

C. Because it provides a detailed breakdown of economic activity by sector.

GDP calculations allow us to analyze and understand:

1. The contribution of different sectors (like agriculture, industry, services) to the overall economy

2. How different sectors are performing relative to each other

3. The structural changes happening in the economy over time

4. Where economic growth or decline is occurring at a sectoral level