CUET Economics PYQs

Identify the correct statements about the externalities as a limitation of GDP and welfare.

A. GDP as measured does not include external production of goods.

B. Inverse relationship between negative externality and welfare.

C. No relation between GDP and welfare.

D. Economic activities have both positive and negative externalities.

E. Producers are rewarded with profit for positive externalities

Choose the correct answer from the options given below :

Calculate Net Domestic Product at factor cost (NDP$_{FC}$).

1. Rs. 3000 crore
2. Rs. 3137 crore
3. Rs. 3140 crore
4. Rs. 3500 crore

Match List-I with List-II

List-I	List-II
(A) GNP at Market price	(I) $GDP_{MP}$ + NFIA
(B) GDP at Market price	(II) NI - Undistributed profits - Net interest payments made by households - Corporate tax + Transfer payments to the households from the government and firms
(C) Personal income	(III) C + I + G + X - M
(D) Private income	(IV) Factor income from net domestic product accruing to the private sector + National debt interest + Net factor income from abroad + Current transfers from government + Other net transfers from the rest of the world

Choose the correct answer from the options given below: