Macro

National Income

Medium

Arrange the following statements in the context of the calculation of Gross National Product at Market price.

(A) Add Net factor income from abroad.

(B) Calculate values of output.

(C) Determine sales for the country.

(D) Deduct intermediate consumption.

Choose the correct answer from the options given below:

(A), (B), (C), (D)

(A), (C), (B), (D)

(B), (A), (D), (C)

(C), (B), (D), (A)

✅ Correct Option: 4

Option 4: (C), (B), (D), (A) -> The correct sequence for calculating GNP at Market Price is: First, Determine sales for the country (C) which provides the base data. Then, Calculate values of output (B) from those sales figures. Next, Deduct intermediate consumption (D) to avoid double counting and arrive at GDP at Market Price (value added approach). Finally, Add Net factor income from abroad (A) to convert GDP to GNP. This follows the formula: GNP at MP = GDP at MP + Net Factor Income from Abroad, where GDP is calculated using the value-added method by eliminating intermediate consumption from total output. -> correct

2026: 20 May Shift 1

What is the other name of incremental change in inventory?

2023: 20 June Shift 1

Calculate the factor income from Abroad from the following.

		(Rs in core)
(a)	NNP at market price	550
(b)	Net Indirect taxes	30
(c)	NVA at factor cost	540
(d)	Factor income to Abroad	50

2025: 27 May Shift 2

Which statements are true in terms of basic national income aggregates:

(A) GNP at factor cost measures the value of output received by the factors of production belonging to a country in a year.

(B) GDP is the market value of all intermediate goods and final goods and services produced within a domestic territory of a country measured in a year.

(C) NDP at factor cost is the income earned by the factors in the form of wages, profits, rent, interest, etc., within the domestic territory of a country.

(D) GDP at factor cost is gross domestic product at market prices, less net product taxes.

Choose the correct answer from the options given below:

2026: 11 May Shift 2

The tea leaves purchased by the consumer, are brewed to make drinkable tea. This is an example of:

2025: 16 May Shift 1

Identify the assumptions of the two - sector economy's circular flow of income.

(A) There is no trade with other countries.

(B) Households do not spend all their income.

(D) Households do not save.

Choose the correct answer from the options given below:

2026: 21 May Shift 1

In occurrence of which type of externalities, GDP will underestimate the actual welfare of the economy?

Solution

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