Macro

National Income

Medium

Which of the following are used to estimate GDP by expenditure method?

(A) The final consumption expenditure on the goods and services produced by the firm.

(B) The expenditure that the government makes on the final goods and services produced by firm.

(C) Compensation of employees.

(D) The final investment expenditure

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

✅ Correct Option: 1

Option 1 -> Includes final consumption (C), government expenditure (G), and investment (I) - all components of expenditure method.

Option 2 -> Incorrectly includes compensation of employees (C), which belongs to income method, not expenditure method.

Option 3 -> Incorrectly includes compensation of employees (C), which is used in income method for GDP calculation.

Option 4 -> Excludes final consumption expenditure (A), which is a major component of expenditure method.

Hence, Option 1: (A), (B) and (D) only -> The expenditure method calculates GDP using the formula: GDP = C + I + G + (X-M), where C is consumption expenditure, I is investment, G is government expenditure, and (X-M) is net exports. Statement (A) represents consumption, (B) represents government expenditure, and (D) represents investment - all are components of expenditure method. Statement (C) 'Compensation of employees' is part of the income method (factor income approach), not the expenditure method, hence excluded. -> correct

2025: 26 May Shift 2

There are 2496 students in a school as on 1st April 2023. During the session, there were 186 new admissions whereas 43 students withdrew from the school. At the end of the session, there were 2539 students in the school, out of whom 1800 were boys and the rest were girls. In this case, which of the following figures represent a flow variable?

2025: 14 May Shift 1

NNP at market prices – (Indirect taxes – Subsidies) = .............

2023: 30 May Shift 1

Accounting of National Income at constant price is called :

2026: 21 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Final durable goods which are used in the production process for creation of goods	(I) Depreciation
(B) Wear and tear of capital	(II) Product method
(C) Measuring aggregate value of final goods and services produced by all the firms is part of	(III) Net value added
(D) Deduction of the value of depreciation from gross value added	(IV) Capital goods

Choose the correct answer from the options given below:

2025: 22 May Shift 1

Which of the following statements are true in macroeconomics?

(A). GVA at factor costs + Net production taxes = GVA at basic prices.

(B). GVA at basic prices + Net product taxes = GVA at market prices.

(C). GNP ≡ GDP - Net factor income from abroad.

(D). NNP ≡ GNP – Depreciation.

Choose the correct answer from the options given below:

2026: 19 May Shift 2

Personal Disposable Income (PDI) is calculated as:

Solution

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