MEDIUM
Earn 100

Explain the concepts of Real GDP and Nominal GDP, using a suitable numerical example.

                         OR

How is Real Gross Domestic Product (GDP) different from Nominal Gross Domestic Product (GDP)? Explain using a numerical example.

 

Important Questions on National Income Accounting

EASY
Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP

When Nominal Gross Domestic Product (GDP) is Rs. 850 crores and Price Index is 170, Real Gross Domestic Product (GDP) will be_____.

EASY
Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP
Environmental Pollution caused by industrial plants is an example of_____externaility.
MEDIUM
Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP
What is the difference between GDP and GNP?
EASY
Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP
 Measurement of national income at current prices provides a reliable base of comparison.
EASY
Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP
 Real gross domestic products can be equal to nominal gross domestic product.
EASY
Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP
When the GDP of a given year is estimated on the basis of the price of the same year, it is called_____GDP or GDP at Current Price.
EASY
Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP
Which of the following statement is correct?
 
HARD
Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP
The value of the nominal GNP of an economy was Rs 2,500 crores in a particular year. The value of GNP of that country during the same year, evaluated at the prices of same base year, was Rs 3,000 crores. Calculate the value of the GNP deflator of the year in percentage terms. Has the price level risen between the base year and the year under consideration?
EASY
Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP
Proportion of more defence goods as compared to consumer goods in GDP is a limitation of GDP as an Index of welfare.
MEDIUM
Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP
Which of the following best defines Gross National Product (GNP)?
EASY
Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP
Increase in Real GDP always indicates that welfare of people is rising.
EASY
Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP

 "Industrial waste driven into rivers is an example of positive externality".

MEDIUM
Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP
Identify the factors of production.
HARD
Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP
Nominal GDP can never be less than Real GDP.
MEDIUM
Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP
What does the expenditure method of calculating GDP include?
EASY
Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP
Real GDP = Nominal GDP_____×100
HARD
Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP
Write down some of the limitations of using GDP as an index of welfare of a country.
HARD
Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP

Distinguish between the Domestic Product and National Product, giving a suitable example in support of your answer.

 

EASY
Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP
What are the method of calculation of GDP?
EASY
Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP
If Nominal GNP is RS.1200, and Real GNP is Rs. 500, then GNP Deflator will be 200.