Macro

National Income

Easy

The benefits (or harms) a firm or an individual causes to another for which they are not paid (or penalised). What it is called?

Non-Monetary Exchanges

Externalities

Transfer Payments

Free Rider

✅ Correct Option: 2

Externalities are benefits or harms that a firm or individual imposes on others without receiving payment or paying compensation, for example pollution from a factory harming nearby residents. Since GDP does not account for externalities, it may overstate or understate welfare.

2025: 2 June Shift 1

Identify which of the following is not considered as 'Normal Resident' of India?

2025: 16 May Shift 1

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

2026: 20 May Shift 1

Firm starts the year with an inventory of 400 shirts. During the coming year it expects to sell 2000 shirts, hence it produces 2000 shirts. The firm is able to sell only 1500 shirts. At the end of the year find out inventories.

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:

2026: 21 May Shift 1

Why the services performed by women at home are not included in GDP?

2026: 15 May Shift 1

When we deduct the value of Personal Tax Payments and Non-Tax Payments from the value of Personal Income then we obtain the value of ............... .

The benefits (or harms) a firm or an individual causes to another for which they are not paid (or penalised). What it is called?

Solution

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