Match List-I with List-II
List-I List-II (A) C + I + G + (X-M) + NFIA (I) (B) - Depreciation (II) Domestic Income (C) NDP MP - IT + Subsidies (III) (D) + Depreciation (IV)
Choose the correct answer from the options given below:
Match List-I with List-II
| List-I | List-II |
|---|---|
| (A) C + I + G + (X-M) + NFIA | (I) |
| (B) - Depreciation | (II) Domestic Income |
| (C) NDP MP - IT + Subsidies | (III) |
| (D) + Depreciation | (IV) |
Choose the correct answer from the options given below:
Solution
Option 3: (A) - (IV), (B) - (III), (C) - (II), (D) - (I) -> Let's analyze each matching:
(A) C + I + G + (X-M) + NFIA represents Gross National Product at Market Prices (GNP_MP). The expenditure approach C + I + G + (X-M) gives GDP_MP, and adding NFIA (Net Factor Income from Abroad) converts it to GNP_MP. Hence (A) matches with (IV).
(B) GDP_MP - Depreciation gives Net Domestic Product at Market Prices (NDP_MP). Depreciation is the reduction in capital stock, so subtracting it from GDP gives NDP. Hence (B) matches with (III).
(C) NDP_MP - IT + Subsidies converts market prices to factor cost. Indirect Taxes (IT) inflate market prices while Subsidies deflate them. NDP at Factor Cost represents Domestic Income (the income earned by factors of production within domestic territory). Hence (C) matches with (II).
(D) NDP_MP + Depreciation is the reverse of (B), which gives back GDP_MP (Gross Domestic Product at Market Prices). Hence (D) matches with (I).
Therefore, the correct matching is: (A)-(IV), (B)-(III), (C)-(II), (D)-(I). -> correct
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