Items Excluded in GDP

Q.

What Is Meant by Fictitious Assets?

Q.

Which of the following items is not included while estimating GNP of a country at market price?

1. Sales of the enterprises

2. Indirect taxes

3. Remittances by NRIs

4. Subsidy

Q.

What are miracle seeds?

Q.

Those goods which satisfy human wants directly are called :

1. Intermediate goods

2. Consumer goods

3. Capital Goods

4. None of these

Q.

Goods that are used as intermediate goods can never be final goods. Defend or refute this statement.

Q.

Should purchase of wheat in the wholesale market be treated as the purchase of a final good?

Q.

If a car is purchased by a taxi-operator, it will be regarded as a:

1. Capital good

2. Intermediate good

3. Final good

4. Both (a) and (c)

Q.

In the production of sugar, sugarcane is :

1. A final good

2. A capital good

3. An intermediate good

4. None of these

Q.

Money may be used as a commodity. State true or false, and explain.

Q.

Net National Product at Factor Cost of a particular country in a year is Rs 1, 900 crores. There are no interest payments made by the households to the firms/government, or by the firms/government to the households. The Personal Disposable Income of the households is Rs 1, 200 crores. The personal income taxes paid by them is Rs 600 crores and the value of retained earnings of the firms and government is valued at Rs 200 crores. What is the value of transfer payments made by the government and firms to the households?

Q.

Own account production of services is not included in national income because:

A .Services are different from goods

B. Services are not productive

C. It is difficult to measure market value of such services

D. None of these

Q.

Food processor used by households in their kitchen is an example of :

1. Consumption goods

2. None of these

3. Capital goods

4. Intermediate goods

Q.

Second-hand cars are not accounted for in the GDP. State true or false.

1. True

2. False

Q.

Which of the following is not a part of final expenditure?

1. Seeds purchased by the farmers

2. Consumer goods purchased by the government

3. Consumer goods exported to rest of the world

4. Government fixed investment expenditure

Q.

Vegetables used by the households are examples of :

1. Intermediate goods

2. None of these

3. Consumption goods

4. Capital goods

Q.

Suppose that the inflation is higher in country A than in country B, and the exchange rate between the two countries is fixed. What is likely to happen to the trade balance between the two countries?

Q. Final goods and services and are the elements which are a part of the GDP definition.

1. final services
2. factor cost
3. intermediate goods
4. market price

Q.

The goods used to produce a final good are called:

1. Resource goods

2. Giffen goods

3. Intermediate goods

4. Normal goods

Q.

Which of the following is true about GDP?

1. It is a stock variable

2. It is a flow variable

3. It is not a variable

4. Its value is indeterminate

Q.

The Aggregative Expenditure Method And Family Budget Method Always Give:(A)Same Results. (B) Different Results. (C) Approximate Results. (D) None Of These.

Q.

As a result of double counting, national income is:

1. Correctly estimated

2. Not estimated for the currency year

3. Underestimated

4. Over-estimated

Q.

Wheat is an example of:

1. Intermediate good

2. Either a or b, depending on the use

3. Either a or b, depending on the quantity

4. Final good

Q.

Voluntary work at an NGO is a part of GDP. State true or false.

1. True

2. False

Q. Which among the following are final goods and which are intermediate goods? Give reasons.
(a) Milk purchased by a tea stall
(b) Bus purchased by a school
(c) Juice purchased by a student from the school canteen.

Q. Explain with the help of an example, the basis of classifying goods into final goods and intermediate goods.

Q.

You and your friend played a game of chess, and you won. For this win, your friend gave you Rs. 1000. Other than this, you have produced and sold chocolates worth Rs. 5, 000. Calculate your GDP from this data.

1. 4, 000

2. 6, 000

3. 5, 000

4. Cannot be determined

Q. What are Intermediate Goods?

1. Goods that are used in production of final goods and services
2. Goods used in manufacturing
3. Goods that are directly exploited from nature
4. Goods used as input in agriculture

Q.

Is flour always a consumption good?

Q.

Suppose a TV was manufactured 5 years ago in 2013, and it had a market value of 50, 000. However, demand for TVs was very low and so it was left unsold.

Now, in 2018, it is sold for a market price of 80, 000. What amount is added to the GDP of the economy in 2013 with respect to this single TV?

1. 80, 000

2. 1, 30, 000

3. 30, 000

4. 50, 000

Q. The difference between gross domestic product and net domestic product equals _____.

1. transfer payments
2. depreciation cost
3. indirect taxes.
4. subsidies