Economics
GDP and Welfare
Practice questions
Why may average living standards fall even when NDP rises?If polluting production raises NDP by 500 crore rupees but estimated environmental damage is 650 crore rupees, which statement about conventional NDP and welfare is appropriate?If polluting production raises NDP by 700 crore rupees but environmental damage is estimated at 900 crore rupees, what is the appropriate conclusion?Two countries have equal NDP but the first country has higher depreciation. Which country will have higher GDP?On what basis is the service of a government school teacher measured in NDP?Even if two countries have equal NDP per capita, why may their economic welfare differ?If polluting production raises NDP by 850 crore rupees but estimated environmental damage is 1,100 crore rupees, what is the most appropriate conclusion?If the ratio of indirect taxes to subsidies is 5:2 and net indirect taxes are ₹150 crore then what are indirect taxes?If the ratio of indirect taxes to subsidies is 3:5 and net indirect taxes are negative ₹80 crore then what are subsidies?If net indirect taxes fall from ₹160 crore to negative ₹40 crore, what is the total change?Initially market price was ₹4,200 crore and factor cost was ₹3,880 crore. Later market price rose by ₹180 crore and factor cost rose by ₹70 crore. What was the change in net indirect taxes?What is the main use of a base year?In the current year, 200 units are produced. The current price is ₹15 and the base-year price is ₹12. What will be real GDP?Why is real GDP used when comparing living standards?How is real GDP per capita obtained?Real GDP per capita is a better indicator of what?What is the benefit of keeping base-year prices constant while calculating real GDP?Environmental quality may decline even when real GDP rises. What does this show?What can be said if a country's real GDP rises but income distribution is highly unequal?Why is real GDP not a complete measure of economic welfare?