The money value of all the final goods and services produced within the country during a particular year is called _________.
- A.per capita income
- B.net domestic product
- C.national Income
- D.gross domestic product
Correct answer
Explanation
The correct answer is D, gross domestic product. Gross domestic product, or GDP, is the money value of all final goods and services produced inside the borders of a country in one year. Two words in the definition matter. Domestic means the output is counted where it is produced, no matter who owns the factor of production, so the earnings of a foreign company working in India are inside India's GDP. Gross means depreciation, the wear and tear of machines and buildings, has not been deducted. In India the National Statistical Office estimates GDP and releases it every quarter. Option A is wrong because per capita income is national income divided by population, an average per person. Option B is wrong because net domestic product is GDP minus depreciation. Option C is wrong because national income, or net national product at factor cost, counts the output of the residents of a country wherever they earn it. Exam tip: domestic means inside the borders, national means by the residents; gross keeps depreciation, net removes it.
Practice Questions
View allAccording to the law of diminishing marginal utility, as the amount of a good consumed increases, the marginal utility of that good tends to
- A.improve
- B.diminish
- C.remain constant
- D.first diminish and then improve
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Each extra unit of a good gives a consumer less additional satisfaction than the unit before it, so marginal utility falls as consumption rises.
Read the full explanation →Consider the following statements about impact of tax : 1. A tax is shifted forward to consumers if the demand is inelastic relative to supply. 2. A tax is shifted backward to producers if the supply is relatively more inelastic than demand. Which of the statements given above is/are correct?
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
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The burden of a tax falls more heavily on whichever side of the market is less elastic, the side that cannot easily walk away.
Read the full explanation →UBI, as an alternative for subsidies in poverty alleviation, stands for
- A.Union Basic Income
- B.Undefined Basic Income
- C.Unconditional Basic Income
- D.Universal Basic Income
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UBI is the idea of paying every citizen a fixed sum of money regularly, without conditions, in place of a large number of separate subsidies and welfare schemes.
Read the full explanation →Who among the following is the Chairman of the Fourteenth Finance Commission?
- A.C. Rangarajan
- B.Vijay Kelkar
- C.Y. V. Reddy
- D.Rakesh Mohan
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The Fourteenth Finance Commission, set up in 2013 for the award period 2015-2020, was chaired by Y. V. Reddy, a former Governor of the Reserve Bank of India.
Read the full explanation →Why was constitutional amendment needed for introducing GST?
- A.States were not willing to agree with the Union for introduction of GST without amendment in the Constitution.
- B.GST was to be implemented on concurrent base and Article 246 was inadequate for such a case.
- C.The Empowered Committee of Finance Ministers had recommended for constitutional amendment.
- D.The GST Council had recommended for constitutional amendment so that its power enhances.
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GST is levied by the Union and the States together on the same supply, and Article 246, which splits taxing powers between them through separate lists, did not allow such a concurrent tax.
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