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प्रश्न
“While estimating Gross Domestic Product (GDP) by expenditure method, entire focus is on expenditures incurred by the residents of the country.” Do you agree with the given statement? Give valid reason in support of your answer.
पर्याय
Agree
Disagree
उत्तर
No, I don't agree with the given statement.
Reasons:
- GDP includes a country's ultimate expenditure on consumption and investment within its borders.
- Domestic boundaries involve both the residents and non-residents.
- Non-residents also participate to the value addition or production process within a country's domestic boundary.
- For example, a Samsung plant in India manufactures mobile phones and LEDs. As a result, final expenditure on items made in India will be included part of India's GDP regardless of whether they are created by non-residents.
- It is included in GDP since it produces jobs within a country's borders.
APPEARS IN
संबंधित प्रश्न
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
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.
Calculate value of "Interest" from the following data:
| S. No. | Particulars |
Amount (₹ in crores) |
| (i) | Indirect tax | 1,500 |
| (ii) | Subsidies | 700 |
| (iii) | Profits | 1,100 |
| (iv) | Consumption of fixed capital | 700 |
| (v) | Gross domestic product at market price | 17,500 |
| (vi) | Compensation of employees | 9,300 |
| (vii) | Interest | ? |
| (viii) | Mixed income of self-employed | 3,500 |
| (ix) | Rent | 800 |
Define the Gross Domestic Product.
Which of the following features are related with Real Gross Domestic Product?
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 Domestic Income and National Income.
______ is the output at base-year prices.
______ is shown by Nominal GDP.
______ 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.
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.
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 |
Which of the following statements is false?
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.
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 |
For a closed economy (with no foreign trade), which one of the following is correct?
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?
