Economics
GDP and Welfare
Practice questions
If GVA at market price (GVAₘₚ) is ₹7,20,000, depreciation is ₹80,000, indirect taxes are ₹1,10,000, and subsidy is ₹30,000, what is NVA at factor cost (NVA𝒇𝒄)?If a trader buys goods for ₹7,80,000, sells them for ₹9,25,000, and spends ₹22,000 on transport service and ₹18,000 on packing material, what is his GVA at market prices?If C = ₹2,000, I = ₹600, G = ₹500, X = ₹300, M = ₹450, depreciation = ₹200, net indirect tax = ₹250, and NFIA = −₹50, what is national income?If a domestic company provides services worth ₹5 crore to a foreign customer and purchases services worth ₹2 crore from a foreign company, what is net service export?Why is product tax not treated as factor income in the income method?If wages are ₹800 crore, employer social contributions are ₹100 crore, rent is ₹200 crore, interest is ₹150 crore, profit is ₹350 crore and mixed income is ₹400 crore, what is domestic factor income?What problem is most likely if income earned from production is wrongly classified under the income method?On what basis is a performance bonus received by an employee included in the income method?If GDP is ₹10,000 crore, factor income from abroad is ₹600 crore, and factor income paid abroad is ₹750 crore, what will be GNP?How is the profit earned by a foreign company located in India treated while measuring India’s GNP?How is the profit earned by an overseas branch of an Indian company treated in India’s GNP?If GNP at market price is ₹60,000 crore, NNP at factor cost is ₹54,000 crore and depreciation is ₹3,500 crore, what will be the net indirect taxes (NIT)?Why does an increase in NNP not always mean that economic welfare has increased?Which formula is correct for NNP?Which aspect represents a welfare limitation of NNP?If NNP_FC is 4,550 crore, depreciation is 650 crore and NFIA is 150 crore, what will GDP_FC be?What is the effect on welfare analysis if the black economy is not fully captured in NNP?Which limitation is shown when environmental degradation is ignored in NNP?If spending on pollution cleanup rises and NNP also rises, what caution is needed in drawing a welfare conclusion?If two countries have equal NNP_FC but different populations, what should be done in a welfare comparison?