Economics
GDP and Welfare
Practice questions
In an economy real GDP rises from 500 to 550 while population rises from 100 to 115. What happens to real GDP per capita?Under which condition is comparison of real GDP across years more meaningful?If real GDP growth is negative but nominal GDP growth is positive, which combination is possible?Why is real GDP not considered a complete measure of economic welfare?If real GDP remains unchanged while population rises by 4 percent then what happens to real GDP per capita?Base-year prices of rice and milk are ₹30 and ₹50 respectively. In the current year, 40 units of rice and 20 units of milk are produced. What is real GDP?Which reason may cause economic welfare to fall despite an increase in real GDP?In a two-good economy base prices are ₹8 and ₹15 and current quantities are 100 and 40. What is real GDP?If a digital service has a zero market price but increases consumer utility, which limitation of GDP measurement appears?If reconstruction spending after a natural disaster raises nominal and real GDP, what does this increase not prove?Base-year prices of wheat and cloth are ₹25 and ₹80. Current-year quantities are 60 and 15 units respectively. What is real GDP?In a two-good economy base prices are ₹12 and ₹25 and current quantities are 80 and 24. What is real GDP?What is the main caution in treating real GDP growth as growth in living standards?If real GDP rises by 12 percent and population rises by 8 percent then approximately how much does real GDP per capita rise?If a country's real GDP rises but leisure time falls sharply what can be said about welfare?Why are household services performed outside the market generally not shown in real GDP?Why is the GDP deflator not a complete measure of economic welfare?If a free digital service has a zero market price, which limitation of the GDP deflator appears?Why is the GDP deflator not a complete indicator of economic welfare?If prices of pollution-causing goods rise, the GDP deflator may increase, but what does this not prove?