18 Questions
What is Gross Capital Formation (GCF) in the context of GDP?
The total investment in capital assets that increases the productive capacity of an economy
Which component of GDP does private consumption represent in India's GDP composition?
Around 60%
Why is consumer confidence crucial for economic growth in the context of GDP?
It drives private consumption which is a significant component of GDP
How does Net Exports (NX) impact the Gross Domestic Product (GDP) calculation?
It reduces the GDP due to negative net exports
What is the significance of Gross Capital Formation (GCF) in relation to employment levels?
GCF boosts employment levels by increasing the productive capacity of an economy
Which method of calculating National Income involves compiling incomes of all households?
Factor income approach
Which of the following best defines Gross Domestic Product (GDP)?
The total market value of all goods produced and services rendered within a country's domestic territory in a specific time period
What is included in a country's domestic territory according to National Income Accounting?
Territory including territorial waters and ships operated by residents across the world
In National Income Accounting, what separates the physical geographical area of a country from its domestic territory?
Political frontiers
What does Gross National Product (GNP) represent?
The market value of all goods produced by a country's residents within its borders
How does Gross Domestic Product (GDP) differ from Net Domestic Product (NDP)?
GDP includes depreciation, while NDP excludes it
What is the significance of including ships operated by residents across different parts of the world in a country's domestic territory?
To accurately reflect the full extent of the country's economic activities and production
In the context of National Income Accounting, what does GDIH represent?
Gross Domestic Income of Government
What is the formula for calculating GDP under the Income Method in National Income Accounting?
GDP = GNP + NFIA
What does NNDI represent in the context of National Income Accounting?
Net National Disposable income
Which approach of measuring GDP focuses on spending by different groups participating in the economy?
Expenditure Method
What does GNP represent in the context of National Income Accounting?
Gross National Product
According to the Value-Added Method, what does GDP represent?
Total monetary value of all finished goods and services produced within a country's borders in a specific time period
Test your knowledge on various concepts related to Gross Domestic Product (GDP) measurement, including equations and definitions of terms like GDP, NDP, GNP, NNP, GNDI, and more. Explore different ways of measuring GDP in an accounting year.
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