Macro

National Income

Medium

Match List-I with List-II

List-I List-II
(A). Gross Domestic Product at Market Prices (GDPMP) (I). C + I + G + (X - M)
(B). Gross Domestic Product at Factor Cost (GDPFC) (II). GDPMP - Depreciation
(C). Net Domestic Product at Market Prices (NDPMP) (III). GDPMP - Net Product Taxes
(D). Net Domestic Product at Factor Cost (NDPFC) (IV). NDPMP - Net Product Taxes - Net Production Taxes

Choose the correct answer from the options given below:

List-I	List-II
(A). Gross Domestic Product at Market Prices (GDPMP)	(I). C + I + G + (X - M)
(B). Gross Domestic Product at Factor Cost (GDPFC)	(II). GDPMP - Depreciation
(C). Net Domestic Product at Market Prices (NDPMP)	(III). GDPMP - Net Product Taxes
(D). Net Domestic Product at Factor Cost (NDPFC)	(IV). NDPMP - Net Product Taxes - Net Production Taxes

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (I), (B) - (III), (C) - (II), (D) - (IV)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

✅ Correct Option: 2

Option 1 -> Incorrect matching: (B) should not match with (II), and (C) should not match with (III).

Option 2 -> (A)-(I): GDPMP is C+I+G+(X-M), (B)-(III): GDPFC = GDPMP - Net Product Taxes, (C)-(II): NDPMP = GDPMP - Depreciation, (D)-(IV): NDPFC = NDPMP - Net Product Taxes - Net Production Taxes.

Option 3 -> Incorrect matching: (B), (C), and (D) are incorrectly paired.

Option 4 -> Incorrect matching: (A) should match with (I), not (III).

Hence, Option 2: (A) - (I), (B) - (III), (C) - (II), (D) - (IV) -> The correct matching is: (A) GDPMP = C + I + G + (X - M) represents the expenditure approach to GDP. (B) GDPFC is obtained by subtracting net product taxes from GDPMP to convert from market prices to factor cost. (C) NDPMP is calculated by subtracting depreciation from GDPMP to get net domestic product. (D) NDPFC is derived by removing all indirect taxes (both net product taxes and net production taxes) from NDPMP to get the factor cost version of net domestic product. -> correct

2022: 15 July Shift 2

What is the value of real GDP if nominal GDP is Rs.3300 crores and GDP deflator is 150.

2026: 31 May Shift 1

	Firm-A	Firm-B
Intermediate consumption	10	20
Sales	50	75
Value added	?	?

From the above table, find the value added figure by Firm-B and Firm-A respectively.

2022: 16 July Shift 2

Identify the correct statement from the following:

A. The Household's investing is not considered to be the cost of building a residence

B. Net factor revenue from overseas includes money from Exports

C. The sum of factor incomes equals the net value added

D. The assessment of national income takes into account the market value of both final and intermediate items

E. Profit earned by non-resident company in India is a part of domestic income of India

Choose the correct answer from the options given below:

2026: 11 May Shift 2

A farmer producing cotton sells it to a spinning mill where it transforms into yarn; the yarn is, in turn, sold to a textile mill where, it transforms into cloth; the cloth is, in turn, transforms into an article of clothing which is then ready to be sold finally to the consumers for final use.

Based on the above example, while calculating Domestic Income in the economy, we will only include the article of clothing and ignore cotton produced by the farmer, yarn produced by the mill and cloth produced by the textile mill, in order to avoid __________.

2024: 16 May

The value of Nominal GDP is USD 1100 and the value of Real GDP is USD 1000. Find the value of GDP deflator:

2023: 28 May Shift 2

Which of the following will be included in the National Income of India ?

(A) Donations given to a religious institution.

(B) Payment of Income Tax

(D) Profits earned by an Indian company from its branch in France

(E) Purchase of a television set by a consumer household

Choose the correct answer from the options given below :

Solution

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