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Increase in Real GDP always indicates that welfare of people is rising.

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Important Questions on National Income Accounting

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Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP
Which of the following statement is correct?
 
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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?
HARD
Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP
Nominal GDP can never be less than Real GDP.
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Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP
 Real gross domestic products can be equal to nominal gross domestic product.
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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.
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Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP
Define externalities. Give an example of a negative externality. What is its impact on welfare?
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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?
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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)?
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Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP
 Measurement of national income at current prices provides a reliable base of comparison.
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Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP

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

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Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP
Identify the factors of production.
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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_____.

MEDIUM
Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP
What does the expenditure method of calculating GDP include?
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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.
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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.

 

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Economics>Macroeconomics>National Income Accounting>Nominal and Real GDP
What are the method of calculation of GDP?
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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.