GDP & National Income — Set 2
Economy Advanced · GDP और राष्ट्रीय आय · Questions 11–20 of 140
What is India's approximate nominal GDP in 2024?
Correct Answer: C. C. $3.5–3.7 trillion
India's nominal GDP in 2024 is approximately $3.5 to $3.7 trillion, making it the 5th largest economy in the world. India surpassed the UK to become the 5th largest in 2022. At Purchasing Power Parity (PPP), India ranks as the 3rd largest economy globally.
India is currently ranked _____ in terms of nominal GDP globally.
Correct Answer: C. C. 5th
India is the 5th largest economy in the world by nominal GDP as of 2024, after the USA, China, Germany, and Japan. India surpassed the United Kingdom in 2022 to claim the 5th position. By PPP (Purchasing Power Parity), India ranks 3rd after USA and China.
What is the difference between Real GDP and Nominal GDP?
Correct Answer: B. B. Real GDP is adjusted for inflation; Nominal GDP is not
Real GDP is adjusted for inflation and measures the value of output at constant base year prices. Nominal GDP is measured at current market prices without inflation adjustment. Real GDP provides a more accurate comparison of economic growth over time by removing the effect of price changes.
GDP Deflator is used to:
Correct Answer: B. B. Measure price level changes from base year to current year
The GDP Deflator is a price index that measures the change in prices of all goods and services produced in an economy from the base year to the current year. It is calculated as (Nominal GDP ÷ Real GDP) × 100. Unlike CPI, it covers all domestically produced goods and services, not just a consumer basket.
Which method of GDP calculation sums wages, rent, interest and profit?
Correct Answer: C. C. Income Method
The Income Method calculates GDP by summing all factor incomes: wages (labour), rent (land), interest (capital), and profit (entrepreneurship). It measures the income generated from productive activities in the economy. The Income Method and Expenditure Method should theoretically yield identical GDP figures.
The Value Added Method of GDP calculation:
Correct Answer: B. B. Sums value added at each stage of production to avoid double counting
The Value Added Method (Production Method) calculates GDP by summing the value added at each stage of production across all sectors. Value added equals output value minus intermediate input costs. This approach avoids double counting by not including intermediate goods in the final total.
NITI Aayog's target for India to become a $5 trillion economy was set for which year?
Correct Answer: B. B. 2030
NITI Aayog set a target for India to become a $5 trillion economy by 2024-25, a goal reaffirmed in the Union Budget 2019-20. However, this target has been revised to approximately FY 2026-27 due to COVID-19 impacts. The long-term vision aims for India to become a Viksit Bharat (Developed India) by 2047.
Advance Estimates of GDP are released by NSO in:
Correct Answer: C. C. January
The NSO releases the First Advance Estimate of GDP in January of the financial year. A Second Advance Estimate is released in February/March. These are preliminary estimates based on partial data and are later revised as more complete data becomes available.
Which of the following is NOT included in GDP?
Correct Answer: C. C. Household domestic work
Household domestic work (cooking, cleaning by family members) is NOT included in GDP because it is not traded in markets and does not generate market income. GDP only measures market transactions. Similarly, black market activities, volunteer work, and leisure time are excluded from GDP calculations.
Transfer payments like pensions and subsidies are:
Correct Answer: B. B. Excluded from GDP as they are not payments for current production
Transfer payments such as pensions, unemployment benefits, and subsidies are NOT included in GDP because they do not represent payment for any current goods or services produced. GDP measures production, not income redistribution. However, any goods/services purchased using transfer payments are counted when spent.