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प्रश्न
Distinguish between Gross Domestic Product at Market Price and Net Domestic Product at Market Price.
उत्तर
| Gross Domestic Product at Market Price |
Net Domestic Product at Market Price |
|
| 1. | GDP is the market value of all final goods and services produced within a domestic territory of a country measured in a year. | This measure allows policy-makers to estimate how much the country has to spend just to maintain their current GDP. If the country is not able to replace the capital stock lost through depreciation, then GDP will fall. |
| 2. | GDPMP = C + I + G + X - M | NDPMP = GDPMP - Dep. |
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संबंधित प्रश्न
How will you treat the following while estimating domestic product of a country? Give reasons for your answer:
Purchase of goods by foreign tourists
Calculate (a) net national product at the market price and (b) gross national disposable income:
| (Rs in crores) | ||
| 1 | Gross domestic fixed capital formation | 400 |
| 2 | Private final consumption expenditure | 8,000 |
| 3 | Government final consumption expenditure | 3,000 |
| 4 | Change in stock | 50 |
| 5 | Consumption of fixed capital | 40 |
| 6 | Net indirect taxes | 100 |
| 7 | Net exports | (-) 60 |
| 8 | Net factor income to abroad | (-) 80 |
| 9 | Net current transfers from abroad | 100 |
| 10 | Dividend | 100 |
If Real GDP is Rs 200 and Price Index (with base = 100) is 110, calculate Nominal GDP
Calculate 'Net Domestic Product at Market Price' and 'Gross National Disposable Income':
| (Rs crores) | ||
| 1 | Private final consumption expenditure | 400 |
| 2 | Opening stock | 10 |
| 3 | Consumption of fixed capital | 25 |
| 4 | Imports | 15 |
| 5 | Government final consumption expenditure | 90 |
| 6 | Net current transfers to rest of the world | 5 |
| 7 | Gross domestic fixed capital formation | 80 |
| 8 | Closing stock | 20 |
| 9 | Exports | 10 |
| 10 | Net factor income to abroad | (-)5 |
If the Real Gross Domestic Product is Rs 250 and the Price Index (base = 100) is 120, calculate the Nominal Gross Domestic Product.
Calculate ‘net national product’ at factor cost and 'private income' from the following:
| (Rs Arab) | ||
| 1 | National debt interest | 60 |
| 2 | Wages and salaries | 600 |
| 3 | Net current transfers to abroad | 20 |
| 4 | Rent | 200 |
| 5 | Transfer payments by the government | 70 |
| 6 | Interest | 300 |
| 7 | A net domestic product at factor cost accruing to government | 140 |
| 8 | Social security contributions by employers | 100 |
| 9 | Net factor income paid to abroad | 50 |
| 10 | Profits | 300 |
Giving reason explain how should the following be treated in estimating gross domestic product at market price?
Expenditure on purchasing a car for use by a firm.
Identify the correctly matched items in Column A to that of Column B:
| Column A | Column B |
| 1. Welfare of the people | (a) Social Welfare |
| 2. Total of economic and non-economic welfare | (b) Economic Welfare |
| 3. Benefits or harms of an activity caused by a firm. | (c) Externalities |
| 4. Material well being of the people | (d) Real GDP |
______ is Domestic Income.
______ is the difference between gross and net.
GDP is not an appropriate indicator of welfare because of:
What does the Factor Cost represent?
Real GDP is considered as an index of:
Identify the correctly matched items in Column A to that of Column B:
| Column A | Column B | ||
| 1 | GDP of a country | (a) | Absolute measure of welfare |
| 2 | Underestimation of GDP | (b) | Non-monetary exchanges excluded |
| 3 | Base year | (c) | Year of current market prices |
| 4 | Economic Welfare | (d) | Mental satisfaction and peace |
Read the below case and answer the question that follows:
|
The country's real gross domestic product (GDP) is likely to expand by 11 percent in the next financial year due to a faster economic recovery and on a low base, says a report. The report by domestic rating agency Brickwork Ratings said economic activities are slowly reaching PRE-COVID levels following the relaxation of the lockdown, except in sectors that remain affected by social distancing norms. "With progress in developing an effective vaccine for COVID-19 and signals of faster-than-expected recovery in the domestic economy, and also supported by a low base, we expect the real GDP to grow at 11 percent in F/Y 22, from the estimated contraction of 7 percent to 7.5 percent in F/Y 21," the agency said. According to the first advance estimates of national income released by the National Statistical Office (NSO), the country's GDP is estimated to contract by a record 7.7 percent during the current financial year. |
What will be the growth rate of GDP according to the NSO?
Read the below case and answer the questions that follow:
The Centre on Saturday increased the budgetary allocation for the environment ministry from last fiscal by nearly five percent for 2020-21 with no change in the amount allotted to pollution abatement and climate change action plan. Union Finance Minister, Nirmala Sitharaman, allocated ₹3,100 crores for the ministry out of which ₹460 crores were allotted to control pollution, which is the same as the money it received in the last budget. Control of pollution has been conceptualized to provide financial assistance to Pollution Control Boards/Committees and funding to National Clean Air Programme (NCAP). Similarly, the budget for pollution abatement, which was cut by 50 percent last year from 2018-to 19, remained unchanged at ₹10 crores. The minister also announced that states, which are formulating and implementing plans for ensuring cleaner air in cities above one million population should be encouraged.
- Budget 2020: Allocation for Environment Ministry up 5% to ₹3,100 crore - Business Standards, 1st February 2020
Real GDP and Welfare are ______ related to each other.
Suppose in a hypothetical economy there are only two Firms A and B, Firm A sold goods for ₹ 2,000 to Firm B and purchased goods for ₹ 1,000. Firm B exported goods for ₹ 2,500 and had domestic sales of ₹ 1,500. Calculate Net Domestic Product at market price, if consumption of fixed capital is ₹ 200.
From the following data, calculate the value of operating surplus:
| S.No. | Items | Amount in (₹ crore) |
| (i) | Royalty | 10 |
|
(ii) |
Rent | 70 |
| (iii) | Interest | 25 |
| (iv) | Net domestic product at factor cost |
500 |
| (v) | Profit | 50 |
| (vi) | Dividends | 20 |
On the basis of the data given below for an imaginary economy, estimate the value of Net Domestic Product at factor cost (NDPFC):
| S.No. | Items | Amount (₹ in crore) |
| (i) | Household Consumption Expenditure | 2,000 |
| (ii) | Government Final Consumption Expenditure | 1,500 |
| (iii) | Gross Domestic Fixed Capital Formation | 1,000 |
| (iv) | Net additions to stock | 300 |
| (v) | Exports | 700 |
| (vi) | Net Indirect Taxes | 350 |
| (vii) | Imports | 200 |
| (viii) | Consumption of Fixed Capital | 250 |
