IGCSE Development Studies: Specimen Questions with Answers 85 - 86 of 98

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Employment Structure

Question 85 (1 of 7 Based on Passage)

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Why does only final goods and services are included while calculating National income?

Explanation

Only final goods and services are including while calculating National Income because

  • Final goods are those goods which have crossed the boundary line of production and are ready for final consumption and investment.
  • The value of final goods already includes the value of all the intermediate goods that are used in making final goods. This would lead to the problem of double counting if all the goods of the economy will be included while calculating national income.
  • This should be avoided because if the value of ant commodity is counted more than once it will result in overestimation of national income.

Question 86 (2 of 7 Based on Passage)

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Name the types of primary employment.

Explanation

Primary sector includes those activities that are undertaken by directly using natural resources e. g. , the cultivation of wheat. As all the subsequent products are formed by using the products of the primary sector as base it is known as primary sector. The primary sector is also referred to as agriculture and related sector.

Primary Sector Includes Occupation Like

  • Extraction of raw materials
  • Farming
  • Fishing
  • Mining
  • Energy extraction

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