Economy – Basics 3

1. Consider the following statements

1. 1. GNP = GDP + Net factor income from abroad
   2. Net National Product at factor cost is “National Income”
   3. Personal Disposable Income = National Income + Transfer payment

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2. Consider the following statements

1. Real GDP measures an economy’s total goods and services in a given year, taking into account changes in price levels.
2. Real GDP can never be more than the nominal GDP.

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3. The value of NNP at the production point is called

4. The net value of GDP after deducting depreciation from GDP is

5. Consider the following statements

1. While calculating GNP, income generated by foreigners in a country is taken into consideration.
2. While calculating GNP, income generated by nationals of a country outside the country is taken into account.

Which of the following statements is/are NOT correct?

6. Which of the following is the actual definition of transfer payments?

7. Which of the following is the correct term for calculating National Income at the constant prices?

8. Which of the following is the definition of a closed economy ?

9. What is the consumption of Fixed Capital known as?

10. Which of the following factors is considered responsible for the drain of wealth from India

1. The high salary of British officials
2. Systematic de-industrialisation of India
3. Commercialisation of agriculture
4. Expansion of agricultural area

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