GDP & National Income — Set 1
Economy Advanced · GDP और राष्ट्रीय आय · Questions 1–10 of 140
What does GDP stand for?
Correct Answer: A. A. Gross Domestic Product
GDP stands for Gross Domestic Product. It measures the total monetary value of all final goods and services produced within the domestic territory of a country during a given period. It is the most widely used indicator of a nation's economic output and size.
Which method of GDP calculation adds Consumer Expenditure, Investment, Government Spending and Net Exports?
Correct Answer: C. C. Expenditure Method
The Expenditure Method calculates GDP as C + I + G + NX, where C is private consumption, I is investment, G is government spending, and NX is net exports (exports minus imports). It sums up all spending on final goods and services in the economy. This is the most commonly cited formula for GDP calculation.
What is GNP?
Correct Answer: B. B. GDP plus Net Factor Income from Abroad
GNP (Gross National Product) equals GDP plus Net Factor Income from Abroad (NFIA). NFIA represents income earned by residents abroad minus income earned by foreigners domestically. GNP measures the output produced by a country's nationals regardless of location.
NNP is calculated as:
Correct Answer: C. C. GNP - Depreciation (CCA)
NNP (Net National Product) is calculated by subtracting Depreciation (also called Capital Consumption Allowance or CCA) from GNP. Depreciation accounts for the wear and tear of capital goods during the production process. NNP thus represents the net addition to the economy's productive capacity after replacing worn-out capital.
National Income is defined as:
Correct Answer: B. B. NNP at Factor Cost
National Income is defined as NNP at Factor Cost (NNP FC). It is obtained by subtracting net indirect taxes (indirect taxes minus subsidies) from NNP at Market Price. Factor cost reflects the actual cost of factors of production without the distortion of taxes and subsidies.
Per Capita Income is calculated as:
Correct Answer: B. B. National Income ÷ Population
Per Capita Income is calculated by dividing National Income by the total population of the country. It is a measure of the average income of each person in the country and is used to compare living standards across nations. A rising per capita income generally indicates improving economic welfare.
What is the base year currently used for India's GDP calculation?
Correct Answer: C. C. 2011-12
India revised its base year for GDP calculation from 2004-05 to 2011-12 in January 2015. The revision was accompanied by methodological improvements including adoption of MCA21 corporate database and alignment with UN System of National Accounts 2008. This revision significantly changed GDP estimates upward.
Which organisation is responsible for publishing India's National Income estimates?
Correct Answer: C. C. NSO/MOSPI
The National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MOSPI) publishes India's National Income estimates. NSO was formed by merging the Central Statistical Office (CSO) and National Sample Survey Office (NSSO). It releases Advance Estimates, Revised Estimates, and Final Estimates of GDP.
The Central Statistical Office (CSO) was renamed to:
Correct Answer: B. B. National Statistical Office (NSO)
The Central Statistical Office (CSO) was renamed the National Statistical Office (NSO) in May 2019. This was done by merging CSO and the National Sample Survey Office (NSSO) into a single entity under MOSPI. The NSO is now the apex body for statistical activities in India.
What is GVA?
Correct Answer: C. C. Gross Value Added
GVA stands for Gross Value Added. It measures the value of output produced minus the value of intermediate inputs used in production. GDP at market prices equals GVA at basic prices plus product taxes minus product subsidies. GVA is sector-specific and helps analyse economic performance across agriculture, industry, and services.