Question 1

The value of all final goods and services produced within the domestic territory of a country in a year is known as?

Accepted Answer

Gross Domestic Product. Gross Domestic Product (GDP) measures the total monetary value of all final goods and services produced within a country's borders. It excludes net income from abroad and focuses strictly on geographical production. This indicator is a primary gauge of a nation's economic health.

Question 2

Which organization is currently responsible for calculating the National Income in India?

Accepted Answer

National Statistical Office. The National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation calculates India's National Income. It was formed by merging the Central Statistics Office (CSO) and the National Sample Survey Office (NSSO). The NSO releases various data including GDP and GVA estimates.

Question 3

When depreciation is deducted from the Gross National Product (GNP), the remaining value is called?

Accepted Answer

Net National Product. Net National Product (NNP) is obtained by subtracting the value of depreciation or wear and tear from GNP. NNP at factor cost is technically considered the 'National Income' of a country. It represents the actual net addition to the economy's wealth.

Question 4

In the context of Indian economy, what does 'GVA' stand for?

Accepted Answer

Gross Value Added. GVA stands for Gross Value Added, which measures the value of goods and services produced in an area, industry, or sector of an economy. It is calculated by subtracting intermediate consumption from the value of output. GVA provides a sector-wise picture of economic activity.

Question 5

Which of the following is excluded while calculating the National Income of a country?

Accepted Answer

Transfer payments. Transfer payments like old-age pensions or scholarships are excluded because they do not correspond to any current production of goods or services. Only the value of productive activities is counted to avoid overestimation. These payments are considered a redistribution of existing income.

National Income — Set 1