Macro

National Income

Easy

Which of the following activity is a limitation to GDP as an indicator of welfare?

Teacher teaching in school.

Services of a mother in helping her child to do homework.

Construction of a road by municipal corporation.

Electricity production for providing street light.

✅ Correct Option: 2

GDP counts only goods and services transacted in the market. A mother's help with her child's homework is a non-market domestic service; it adds to welfare but has no market price, so it is excluded from GDP. Such non-monetary exchanges make GDP an incomplete indicator of welfare. The other activities are market or government production included in GDP.

2025: 29 May Shift 1

Which of the following goods undergo wear and tear, thus gradually replaced over time?

2026: 15 May Shift 1

The Central Statistics Office (CSO) of the Government of India has been reporting the GDP at factor cost and at market prices. In its revision in January, 2015 the CSO replaced GDP at factor cost with __________

2025: 2 June Shift 1

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

2026: 6 June Shift 1

Payments which are made without any counterpart of services received by the payer are known as.

2025: 15 May Shift 1

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.

(D) The final investment expenditure

Choose the correct answer from the options given below:

2026: 6 June Shift 1

The value of GDP at the current prevailing prices is defined as.

Which of the following activity is a limitation to GDP as an indicator of welfare?

Solution

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