EASY
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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

EASY
Which of the following statement is correct?
 
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Environmental Pollution caused by industrial plants is an example of_____externaility.
MEDIUM
What is the difference between GDP and GNP?
HARD
Nominal GDP can never be less than Real GDP.
EASY
 Real gross domestic products can be equal to nominal gross domestic product.
EASY
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
Define externalities. Give an example of a negative externality. What is its impact on welfare?
HARD
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
Proportion of more defence goods as compared to consumer goods in GDP is a limitation of GDP as an Index of welfare.
MEDIUM
Which of the following best defines Gross National Product (GNP)?
EASY
 Measurement of national income at current prices provides a reliable base of comparison.
EASY

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

EASY

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

MEDIUM
What does the expenditure method of calculating GDP include?
HARD
Write down some of the limitations of using GDP as an index of welfare of a country.
HARD

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

 

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