Macro

National Income

Medium

Which of the following are correct statements regarding Gross Domestic Product (GDP)?

(A) GDP is a measure of the welfare of a country.

(B) Real GDP is measured at current market prices.

(C) Expenditure method estimate =Income Method estimate =Product Method estimate=GDP of a country.

(D) Gross National Product at factor cost = GDP $_{MP}$ + Net factor income from abroad.

Choose the correct answer from the options given below:

(A), (B) and (D) only

(A), (B) and (C) only

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

(B), (C) and (D) only

(A), (B) and (D) only

(A), (B) and (C) only

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

(B), (C) and (D) only

✅ Drop

Statement (A) -> GDP measures economic output, not welfare. It ignores income distribution, environmental quality, and non-market activities.

Statement (B) -> Real GDP is measured at constant (base year) prices, not current market prices. Nominal GDP uses current prices.

Statement (C) -> In theory, all three methods (Expenditure, Income, and Product) should yield the same GDP value due to circular flow of income.

Statement (D) -> The correct formula is GNP at Market Prices = GDP_MP + NFIA. GNP at factor cost requires additional adjustment for indirect taxes.

Question Dropped -> Only statement (C) is correct, but none of the given options correctly identify this. Statement (A) confuses GDP with welfare measures, Statement (B) confuses real GDP with nominal GDP, and Statement (D) provides an incorrect formula for GNP at factor cost. Since no option matches the correct answer, this question should be dropped. -> correct

2025: 29 May Shift 1

If in an economy value of Net factor Income from Abroad is 200 cores and the Factor Income to Abroad is 40 crores. Identify the value of Factor Income from Abroad.

2023: 28 May Shift 2

Value Added Method of calculating aggregate annual value of goods and services is also called :

2025: 16 May Shift 1

Which of the following will be included in the domestic territory of India?

2026: 15 May Shift 1

Match the LIST-I with LIST-II

LIST-I	LIST-II
A. An Enquiry into the Nature and Cause of the Wealth of Nations	I. John Maynard Keynes
B. General Theory of Employment, Interest and Money	II. Real GDP
C. The GDP calculated at current market price	III. Adam Smith
D. The GDP calculated at some constant set of prices	IV. Nominal GDP

Choose the correct answer from the options given below:

2025: 21 May Shift 1

Which of the following is not an intermediate good?

2025: 14 May Shift 1

Choose the correct statements from the following.

(A) Capital goods are those goods which are bought not for meeting immediate need of the consumer but for producing other goods.

(B) Households refer to the families or individuals who supply factors of production to the firms and which buy the goods and services from the firms

(C) Consumer Price Index is the index of prices of a given basket of commodity which are bought by the representative consumer

(D) Wholesale Price Index refers to the percentage change in the weighted average price level.

Solution

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