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प्रश्न
"Gross Domestig Product (GDP) as an indicator of welfare loses its significance if the distribution of income turns unequal." Justify the given statement with valid reason.
उत्तर
Yes, this is absolutely correct. A rise in GDP alone may not result in an increase in economic welfare. It is only significant when the distribution is equal. If it is not distributed equally, it will make the rich richer and the poor poorer. As a result, this indicator does not apply when the distribution is unequal.
संबंधित प्रश्न
Giving reason explain how should the following be treated in estimating gross domestic product at market price?
Fees to a mechanic paid by a firm.
Calculate (a) national income (b) net national income disposable income:
| (Rs. in crores) | ||
| 1 | Net factor income to abroad | (-) 50 |
| 2 | Net indirect taxes | 800 |
| 3 | Net current transfers from rest of the word | 100 |
| 4 | Net imports | 200 |
| 5 | Private final consumption expenditure | 5000 |
| 6 | Government final consumption expenditure | 3000 |
| 7 | Gross domestic capital formation | 1000 |
| 8 | Consumption of fixed capital | 150 |
| 9 | Change in stock | (-) 50 |
| 10 | Mixed income | 4000 |
| 11 | Scholarship to students | 80 |
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.
Write down the three identities of calculating the GDP of a country by the three methods. Also briefly explain why each of these should give us the same value of GDP.
Answer the following question.
How can gross domestic product at factor cost be obtained from the gross national product at market price?
Read the following statements - Assertion (A) and Reason (R):
Assertion (A) - Acquisition of a domestic (Indian) company by a foreign (Australian) company will be recorded on the credit side of the Balance of Payment Account.
Reason(R) - It leads to the outflow of foreign exchange from the domestic economy.
From the given alternatives choose the correct one:
Identify the correctly matched pair from Column A to that of Column B:
| Column A | Column B |
| 1. Inflationary Gap | (a) Selling of government securities |
| 2. Deflationary Gap | (2) Increase in Statutory Liquidity Ratio |
| 3. Effects of Deficient Demand | (c) Rise in production level |
| 4. Plans to Expand Exports | (d) AD > AS (at full Exports employment level) |
Assertion (A): GDP is the correct measure of the improvement of welfare of the people.
Reason (R): Many activities in an economy are not evaluated in monetary terms, they are not included in GDP due to non-availability of data.
______ is the difference between gross and net.
______ is the difference between Domestic Income and National Income.
______ states that as more and more units of variable factors are combined with the fixed factor, a stage must ultimately come when marginal product of the variable factor starts declining.
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?
Distinguish between Gross Domestic Product at Market Price and Net Domestic Product at Market Price.
Read the following statements carefully:
Statement 1: Gross Domestic Product (GDP) is the sum total of the gross market value of all the final goods and services added by all the sectors in the economy during a fiscal year.
Statement 2: Gross Value Added at Market Price (GVAMP) is equal to the excess of value of output over intermediate consumption.
In the light of the given statements, choose the correct alternative from the following.
For a closed economy (with no foreign trade), which one of the following is correct?
Calculate the value of Domestic Income from the following data:
| S.NO. | Particulars | Amount (₹ in crore) |
| (i) | Rent and Royalties | 1,300 |
| (ii) | Net Indirect Taxes | 200 |
| (iii) | Wages & Salaries ( in cash & in kind) | 1,700 |
| (iv) | Corporate Tax | 400 |
| (v) | Depreciation | 400 |
| (vi) | Retained Earnings | 300 |
| (vii) | Dividends | 400 |
| (viii) | Net Factor Income from Abroad | (-) 120 |
| (ix) | Mixed Income of Self Employed | 1,400 |
| (x) | Change in Stock | (-) 200 |
