Advertisements
Advertisements
Question
If the Nominal GDP is Rs. 1200 and Price Index (with base = 100) is 120, calculate Real GDP.
Solution
Real GDP = `"Nominal GD"/"Price Index of Current Year" xx 100`
Given that
Nominal GDP - Rs 1200
Price Index of Current Year - Rs120
Real GDP = `1200/120 xx 100`
= Rs 1000
APPEARS IN
RELATED QUESTIONS
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 'sales' from the following data:-
| S. No. | Particulars | (Rs in laths) |
| (i) | Net value added at factor cost | 560 |
| (ii) | Depreciation | 60 |
| (iii) | Change in stock | (-)30 |
| (iv) | Intermediate cost | 1000 |
| (v) | Exports | 200 |
| (vi) | Indirect taxes | 60 |
Calculate Net Domestic Product at Factor Cost and Private Income:
| Rs crore | ||
| 1 | Gross National Disposable Income | 600 |
| 2 | Net current transfers to abroad | (-)20 |
| 3 | Consumption of fixed capital | 60 |
| 4 | Current transfers from government | 30 |
| 5 | Indirect tax | 100 |
| 6 | Income accruing to government | 80 |
| 7 | Subsidies | 10 |
| 8 | Net factor income to abroad | (-)10 |
| 9 | National debt interest | 40 |
| 10 | Personal tax | 150 |
How will you treat the following while estimating domestic product of a country? Give reasons for your answer:
Profits earned by branches of country's bank in other countries
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
If the Real GDP is Rs 300 and Nominal GDP is Rs 330, calculate Price Index (base = 100).
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.
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 |
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:
NDPFC =?
What is a sectoral composition of an economy?
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 |
Which of the following economic reforms in India leads to social justice and welfare?
Identify the correct pair as given in Column B by matching them with respective concepts in Column A:
| Column A | Column B | ||
| (1) | Reduction in the value of the domestic currency by the government | (a) | Devaluation |
| (2) | Reduction in the value of the domestic currency through market forces | (b) | Appreciation |
| (3) | Increase in the value of the domestic currency by the government | (c) | Depreciation |
| (4) | Increase in the value of the domestic currency through market forces | (d) | Revaluation |
What does the Factor Cost represent?
Economists like Adam Smith follow which school of economics?
______ 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.
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. |
Read the following statements - Assertion (A) and Reason (R).
Assertion (A): Real GDP is the true indicator of the growth of the economy.
Reason (R): Real GDP is nominal GDP adjusted for inflation used to measure the actual growth of production.
Which of the following statements is false?
