Macro

National Income

Easy

Which of the following correctly defines Gross National Product at Market Prices (GNPMP)?

GNPMP is the value of all the final goods and services that are produced within the economic territory of India and is measured at the market prices, in a year.

GNPMP is the value of all the final goods and services that are produced by the normal residents of India and is measured at the market prices, in a year.

GNPMP is the value of the income earned by the factors in the form of wages, profits, rent, interest, etc., within the domestic territory of a country.

GNPMP is the market value of all final goods and services produced within a domestic territory of a country measured in a month.

✅ Correct Option: 2

Option 1 -> This defines GDP (Gross Domestic Product), not GNP, as it refers to production 'within the economic territory' rather than by residents.

Option 2 -> This correctly defines GNPMP as it focuses on production by 'normal residents of India' regardless of location, measured at market prices annually.

Option 3 -> This describes National Income or factor income approach, focusing on domestic territory rather than residents' production.

Option 4 -> This incorrectly defines production 'within domestic territory' (GDP concept) and mentions monthly measurement instead of annual.

Hence, Option 2 -> GNPMP is defined as the market value of all final goods and services produced by the normal residents of a country, irrespective of whether the production takes place within or outside the domestic territory. The key distinction is 'by normal residents' (GNP) versus 'within territory' (GDP). It includes Net Factor Income from Abroad (NFIA) and is measured at market prices (including indirect taxes minus subsidies) on an annual basis. -> correct

2026: 19 May Shift 2

Which one of the following statements is NOT correct regarding investment?

2026: 21 May Shift 1

Match List-I with List-II

List-I	List-II
(A) GDP	(I) NDP $_{MP}$ + NFIA
(B) GDP $_{FC}$	(II) C+I+G+X-M
(C) NDP $_{MP}$	(III) GDP $_{MP}$ - Depreciation
(D) NNP $_{MP}$	(IV) GDP $_{MP}$ - NIT

Choose the correct answer from the options given below:

2025: 13 May Shift 1

Arrange the following steps of estimation of National Income by income method in the proper sequence.

(A) Identification and classification of producing firms.

(B) Estimation of NDPFC

(D) Classification of factor Income.

Choose the correct answer from the options given below:

2022: 19 July Shift 2

If a Country's real GDP is $\overline{\mathbf{\tau}}$ 400 crores and its nominal GDP is $\overline{\mathbf{\tau}}$ 1000 crores, its GDP deflator is : (Choose the correct alternative).

2025: 28 May Shift 1

Consider the following statement related to investment:

(A) The common notion is that investment is using money to buy physical or financial assets.

(B) From an economist's view, investment is capital formation.

(D) The common and economic view regarding investment does not make any difference. It is the same.

Choose the correct answer from the options given below:

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

2026: 31 May Shift 1

The price at which goods are traded in bulk are known as:

Which of the following correctly defines Gross National Product at Market Prices (GNPMP)?

Solution

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