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In estimating India's gross farm output, the output of each crop is measured by:
AMultiplying area sown by average yield per hectare
BDividing total farm income by the number of farmers
CAdding the market value of seeds and fertilisers used
DCounting the produce actually sold in regulated markets
Answer & Solution
Correct answer: A. Multiplying area sown by average yield per hectare
1. Under the product method the gross value of farm output in India is built up in stages.
2. The total production of 64 agricultural commodities is estimated first, and the output of each crop is measured by multiplying the area sown by the average yield per hectare.
3. The total output of each commodity is then valued at market prices.
4. The aggregate value of the output of those 64 commodities gives the gross value of agricultural output.
5. The net value follows by deducting the cost of seed, manures and fertilisers, market charges, repairs and depreciation, so option C names deductions rather than the measurement step.
_Source: TN HSC Class 12 Economics (Samacheer Kalvi, Govt of Tamil Nadu), Ch 2 "National Income", §2.5.1_
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