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प्रश्न
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.
पर्याय
Statement 1 is true and Statement 2 is false.
Statement 1 is false and Statement 2 is true.
Both Statements 1 and 2 are true.
Both Statements 1 and 2 are false.
उत्तर
Both Statements 1 and 2 are true.
Explanation:
Gross Domestic Product (GDP) is the sum of market value of all the final goods and services produced in the domestic boundary of a country in an accounting year.
And GVAMP = Value of Output − Intermediate consumption
APPEARS IN
संबंधित प्रश्न
How will you treat the following while estimating domestic product of a country? Give reasons for your answer:
Gifts are given by an employer to his employees on Independence Day
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) 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 |
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 the Real GDP is Rs 300 and Nominal GDP is Rs 330, calculate Price Index (base = 100).
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 |
Giving reason explain how should the following be treated in estimating gross domestic product at market price?
Interest paid by an individual on a car loan taken from a bank.
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.
Define the Gross Domestic Product.
Match the following:
| 1 | Prime Minister | A | Seeds that give a large proportion of output |
| 2 | Gross Domestic Product | B | Quantity of goods that can be imported |
| 3 | Quota | C | Chairperson of the planning commission |
| 4 | Land Reforms | D | The money value of all the final goods and services produced within the economy 'in one year |
| 5 | HYV Seeds | E | Improvements in the field of agriculture to increase its productivity |
| 6 | Subsidy | F | The monetary assistance given by the government for production activities |
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.
Growth of GDP and Major Sectors (in %)
| Column I | Column II |
| (1) Feature of Perfect Competition | (a) Only one buyer |
| (2) Feature of the Monopoly Market | (b) Only a few sellers |
| (3) Features of Monopolistic Competition | (c) a Large Number of Buyers and Sellers |
| (4) Features of the Monopoly Market | (d) Only a few buyers |
Assertion: With every increase in the level of GDP, social welfare definitely increases in the economy.
Reason (R): GDP is not a true indicator of the welfare of the economy.
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. |
Real GDP is when the goods and services are produced by all producing units in the domestic territory of a country during an accounting year and valued at ______ prices or constant prices.
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 |
From the following, calculate the value of net domestic product at factor cost:
| S.No. | Items | Amount in (₹ crore) |
| (i) | Royalty | 5 |
|
(ii) |
Rent | 75 |
| (iii) | Interest | 30 |
| (iv) | Compensation of Employees |
600 |
| (v) | Profit | 45 |
| (vi) | Dividends | 20 |
| (vii) | Mixed Income of self employed |
100 |
State whether the following items will be included in the estimation of National Income or not? Give a reason for your answer.
Wooden cupboard purchased by a family.
Union Finance Minister Mrs. Nirmala Sitharaman announced during her Budget speech that the Centre would reduce its fiscal deficit to 5.1% of gross GDP in 2024 – 25. (The present fiscal deficit is 5.8% of GDP.)
(Source: Union budget 2024 – 25)
What would be the impact of this decision on government borrowing? Why?
