GDP Measurement Quiz

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What is Gross Capital Formation (GCF) in the context of GDP?

The discrepancies in GDP calculations due to differences in value recorded for a product

The net exports derived from the difference between exports and imports

The total government spending on final consumption expenditure

The total investment in capital assets that increases the productive capacity of an economy (correct)

Which component of GDP does private consumption represent in India's GDP composition?

Around 11%

Around 30%

Around 60% (correct)

Around -2%

Why is consumer confidence crucial for economic growth in the context of GDP?

It influences Gross Capital Formation

It drives private consumption which is a significant component of GDP (correct)

It directly affects the inflation rate

It boosts government spending

How does Net Exports (NX) impact the Gross Domestic Product (GDP) calculation?

It reduces the GDP due to negative net exports Signup and view all the answers

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 Signup and view all the answers

Which method of calculating National Income involves compiling incomes of all households?

Factor income approach Signup and view all the answers

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 Signup and view all the answers

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 Signup and view all the answers

In National Income Accounting, what separates the physical geographical area of a country from its domestic territory?

Political frontiers Signup and view all the answers

What does Gross National Product (GNP) represent?

The market value of all goods produced by a country's residents within its borders Signup and view all the answers

How does Gross Domestic Product (GDP) differ from Net Domestic Product (NDP)?

GDP includes depreciation, while NDP excludes it Signup and view all the answers

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 Signup and view all the answers

In the context of National Income Accounting, what does GDIH represent?

Gross Domestic Income of Government Signup and view all the answers

What is the formula for calculating GDP under the Income Method in National Income Accounting?

GDP = GNP + NFIA Signup and view all the answers

What does NNDI represent in the context of National Income Accounting?

Net National Disposable income Signup and view all the answers

Which approach of measuring GDP focuses on spending by different groups participating in the economy?

Expenditure Method Signup and view all the answers

What does GNP represent in the context of National Income Accounting?

Gross National Product Signup and view all the answers

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 Signup and view all the answers