Assertion A GDP does not exhibit the structure of the product Reason R If the increase in GDP i...........

Introductory Macro Economics National Income Accounting

Assertion (A): GDP does not exhibit the structure of the product.

Reason (R): If the increase in GDP is mainly due to increased production of war equipment and ammunitions, then such an increase cannot improve welfare in economy.

Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is true, but Reason (R) is false.

Assertion (A) is false, but Reason (R) is true.

Explanation:

Option (1) is correct.
Explanation: Features of Monopolistic market
(1) Highly Differentiated Product
(2) Many buyer and Seller
(3) Low barrier to entry and exit
(4) Non price competition

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