1.National income accounting Flashcards
What is GDP and GNP?
GDP stands for Gross Domestic Product, which refers to the total value of goods and services produced within a country’s borders during a given period of time.
GNP stands for Gross National Product, which refers to the total value of goods and services produced by a country’s residents, regardless of their location, during a given period of time.
Who coined the term GDP?
The term GDP was coined by economist Simon Kuznets.
Who is calculate GDP in India?
In India, GDP is calculated by the National Statistics Office (NSO) that works under the Ministry of Statistics and Programme Implementation (MoSPI).
What are the basic factors of the economy?
The basic factors of the economy are Land, Labor, Capital, and Entrepreneurship.
What are the four types of income derived from the basic factors of the economy?
The four types of income derived from the basic factors of the economy are Rent (from land), Wages (from labor), Interest (from capital), and Profit (from entrepreneurship).
What is the difference between macroeconomics and microeconomics?
Macroeconomics is the study of the economy as a whole, including topics such as inflation, unemployment, and economic growth.
Microeconomics is the study of individual economic units, such as households, firms, and markets.
What is Nominal GDP?
Nominal GDP is the value of goods and services produced within a country’s borders during a given period of time, calculated using the current market price.
What is Real GDP?
Real GDP is the value of goods and services produced within a country’s borders during a given period of time, adjusted for inflation and calculated using a constant market price.
What is the formula for GNP?
GNP = GDP + Net factor income from Abroad.
What is Net factor income from Abroad?
Net factor income from Abroad is the difference between the income earned by residents of a country outside of the country and the income earned by non-residents within the country. It is calculated by subtracting the earnings of foreigners in the country from the earnings of Indians outside the country.
