5.Measures of Growth and National Income Accounting

Question 1

What is sustainable development?

Answer 1

Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Question 2

What are the components of the World Happiness Report?

Answer 2

The components of the World Happiness Report are:

• Real per capita income
• Healthy life expectancy
• Social support
• Freedom from corruption
• Freedom to make life choices
• Generosity

Question 3

What is India’s ranking in the World Happiness Report 2023?

Answer 3

India’s ranking in the World Happiness Report 2023 is 136 out of 146 countries.

Question 4

What are the top 3 countries in the World Happiness Report 2023?

Answer 4

The top 3 countries in the World Happiness Report 2023 are:

• Finland
• Denmark
• Switzerland

Question 5

What is the definition of “sustainable development”?

Answer 5

Sustainable development refers to development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs.

Question 6

Who publishes the World Happiness Report and since when has it been published?

Answer 6

The World Happiness Report is published by the United Nations Sustainable Development Solutions Network (UNSDSN) since 2012.

Question 7

What are the components considered in the World Happiness Report?

Answer 7

The components include real per capita income, healthy life expectancy, social support, freedom from corruption, freedom to make life choices, and generosity.

Question 8

What is India’s ranking in the World Happiness Index 2023?

Answer 8

India is ranked 136th out of 146 countries in the World Happiness Index 2023.

Question 9

What is the Gender Inequality Index (GII)?

Answer 9

The Gender Inequality Index is a measure of gender inequalities in three important aspects of human development: reproductive health, empowerment, and economic status.

Question 10

What are the three dimensions of the GII?

Answer 10

What are the three dimensions of the GII?

Answer: The three dimensions of the GII are:

• Reproductive health: This is measured by maternal mortality ratio and adolescent birth rates.
• Empowerment: This is measured by proportion of parliamentary seats occupied by females and proportion of adult females and males aged 25 years and older with at least some secondary education.
• Economic status: This is expressed as labor market participation and measured by labor force participation rate of female and male populations aged 15 years and older.

Question 11

Which three countries occupy the top three positions in the World Happiness Index 2023?

Answer 11

The top three countries are Finland, Denmark, and Switzerland.

Question 12

Who releases the Gender Inequality Index (GII)?

Answer 12

The Gender Inequality Index is released by the United Nations Development Programme (UNDP).

Question 13

What is India’s ranking in the Gender Inequality Index?

Answer 13

India’s ranking in the Gender Inequality Index is 122 out of 163 countries.

Question 14

What is the maternal mortality ratio?

Answer 14

The maternal mortality ratio is the number of maternal deaths per 100,000 live births due to pregnancy and childbirth.

Question 15

What aspects of human development does the Gender Inequality Index measure?

Answer 15

The Gender Inequality Index measures gender inequalities in reproductive health, empowerment, and economic status.

Question 16

What factors are used to measure reproductive health, empowerment, and economic status in the Gender Inequality Index?

Answer 16

Reproductive health is measured by maternal mortality ratio and adolescent birth rates. Empowerment is measured by factors such as parliamentary seat representation and education. Economic status is measured by labor force participation rates.

Question 17

What are the adolescent birth rates?

Answer 17

The adolescent birth rates are the number of girls becoming mothers from the age of 15-19 years per 1000 women.

Question 18

What is the labor force participation rate?

Answer 18

The labor force participation rate is the proportion of the working-age population that is either employed or actively seeking employment.

Question 19

What does the Maternal Mortality Rate measure?

Answer 19

The Maternal Mortality Rate measures the number of maternal deaths per 100,000 live births due to pregnancy and childbirth.

Question 20

What does the Adolescent Birth Rates measure?

Answer 20

Adolescent Birth Rates measure the number of girls becoming mothers between the ages of 15-19 per 1000 women. In India, 9.5% of girls aged 15-19 give birth to a child.

Question 21

What is the Global Gender Gap Index?

Answer 21

The Global Gender Gap Index is a tool used to assess gender-based disparities across four dimensions: economic participation and opportunity, educational attainment, health and survival, and political empowerment.

Question 22

What are the four dimensions of the Global Gender Gap Index?

Answer 22

The four dimensions of the Global Gender Gap Index are:

• Economic participation and opportunity: This dimension measures the gap between men and women in the labor force, wages, and other economic opportunities.
• Educational attainment: This dimension measures the gap between men and women in terms of access to education, literacy rates, and enrollment rates.
• Health and survival: This dimension measures the gap between men and women in terms of life expectancy, maternal mortality, and other health outcomes.
• Political empowerment: This dimension measures the gap between men and women in terms of representation in government, decision-making positions, and other political spheres.

Question 23

Who releases the Global Gender Gap Index?

Answer 23

The Global Gender Gap Index is released by the World Economic Forum (WEF).

Question 24

What are the four key dimensions measured by the Global Gender Gap Index?

Answer 24

The four key dimensions are Economic Participation and Opportunities, Educational Attainment, Health and Survival, and Political Empowerment.

Question 25

What is the score of India on the Global Gender Gap Index?

Answer 25

India’s score on the Global Gender Gap Index is 0.629, which means that there is a 37.1% gender gap in the country. India ranks 135 out of 146 countries on the index.

Question 26

What are needs?

Answer 26

Needs are the basic necessities that are required for survival. They are essential for human life and cannot be compromised. Examples of needs include food, water, shelter, clothing, and healthcare.

Question 27

What does a score of 1 on the Global Gender Gap Index represent?

Answer 27

A score of 1 on the index represents full gender parity, while 0 represents complete imparity.

Question 28

What is the ranking of India in the Global Gender Gap Index?

Answer 28

India ranks 135 out of 146 countries in the Global Gender Gap Index.

Question 29

What are wants?

Answer 29

Wants are the things that people desire but are not essential for survival. They are often driven by emotions and personal preferences. Examples of wants include luxury items, entertainment, and travel.

Question 30

What are demands?

Answer 30

Demands are wants that are backed by purchasing power. They are the things that people are willing and able to pay for.

Question 31

What is the difference between needs and wants?

Answer 31

Needs are basic human requirements for survival like shelter, clothing, food, and water, while wants refer to the desire for products or services that are not necessary for survival.

Question 32

When does a want become a demand?

Answer 32

A want becomes a demand when a customer has both the willingness and ability (purchasing power) to buy the desired product or service.

Question 33

What is the difference between needs and wants?

Answer 33

The main difference between needs and wants is that needs are essential for survival, while wants are not. Needs are also more objective, while wants are more subjective.

Question 34

What is national income?

Answer 34

National income is the total amount of money earned by all the citizens of a country in a given year. It is calculated by adding up the incomes of all the individuals, businesses, and governments in the country.

Question 35

What does the term “national income” refer to?

Answer 35

National income refers to the total income earned by the citizens of a country during a given period, typically a year.

Question 36

What is the purpose of national income accounting?

Answer 36

National income accounting methods measure the economic activity of a country during a specific time period by tracking production and income.

Question 37

What are the different measures of national income?

Answer 37

The different measures of national income are:

• Gross domestic product (GDP): This is the total value of all the goods and services produced in a country in a given year.
• Gross national product (GNP): This is the total value of all the goods and services produced by a country’s citizens, regardless of where they are produced.
• Net national product (NNP): This is the total value of all the goods and services produced by a country’s citizens, minus depreciation.
• Personal income: This is the income that individuals receive from all sources, including wages, salaries, dividends, interest, and transfer payments.
• Disposable income: This is the income that individuals have available to spend or save after taxes have been paid.

Question 38

What is the difference between GDP and GNP?

Answer 38

The main difference between GDP and GNP is that GDP only includes the goods and services produced within a country’s borders, while GNP includes the goods and services produced by a country’s citizens, regardless of where they are produced.

Question 39

What are some measures used to determine national income?

Answer 39

Measures include GDP (Gross Domestic Product), GNP (Gross National Product), NNP (Net National Product), as well as other measures like personal income and disposable income.

Question 40

What does GDP represent?

Answer 40

GDP (Gross Domestic Product) represents the monetary value of all final goods and services produced within a country’s domestic territory during a specific financial year.

Question 41

What are final goods?

Answer 41

Final goods are goods that are produced for the purpose of final consumption by the end consumer. They do not require further processing.

Question 42

What are capital goods?

Answer 42

Capital goods are goods that are used to produce other goods and services. They are also known as producer goods.

Question 43

What are final goods?

Answer 43

Final goods are products intended for direct consumption by end consumers and do not require further processing.

Question 44

What is the distinction between capital goods and consumer goods?

Answer 44

Capital goods are used by businesses to produce consumer or other capital goods (e.g., machinery), while consumer goods are directly used by consumers (e.g., food, appliances).

Question 45

What are consumer goods?

Answer 45

Consumer goods are goods that are used by consumers. They are the final products that are purchased by consumers for their own use.

Question 46

What are intermediate goods?

Answer 46

Intermediate goods are goods that are used in the production of other goods and services. They are not final products and are not purchased by consumers for their own use.

Question 47

What are intermediate goods?

Answer 47

Intermediate goods are used by businesses to produce final goods or consumer goods and act as inputs in other products.

Question 48

What is included within a country’s domestic territory?

Answer 48

A country’s domestic territory includes its political boundaries, a land frontier, a 12 nautical mile area from the coast, an Exclusive Economic Zone (EEZ) extending 200 nautical miles from the coast, embassies, high commissions, military establishments abroad, and Indian-origin aircrafts and ships in foreign territories.

Question 49

What is the domestic territory of a country?

Answer 49

The domestic territory of a country is the area within its political boundaries. It includes the land, air, and water within the boundaries.

Question 50

What are the components of the domestic territory of India?

Answer 50

The components of the domestic territory of India are:

• Land: The land within the political boundaries of India, including the mainland and the islands.
• Air: The airspace above the land and the surrounding waters.
• Water: The territorial waters, including the 12 nautical miles of the sea from the coast.
• Exclusive Economic Zone (EEZ): The area of the sea within 200 nautical miles of the coast.
• Embassies, High Commissions, and Military Establishments Abroad: The embassies, high commissions, and military establishments of India located in foreign countries.

Question 51

What is the difference between nominal GDP and real GDP?

Answer 51

Nominal GDP is calculated using the current prices of goods and services, while real GDP uses the base year’s prices to account for inflation.

Question 52

What is the base year in the context of real GDP?

Answer 52

The base year is the reference year used for calculating GDP at constant prices.

Question 53

What is nominal GDP?

Answer 53

Nominal GDP is the value of all goods and services produced in a country in a given year, measured at current prices.

Question 54

What is real GDP?

Answer 54

Real GDP is the value of all goods and services produced in a country in a given year, measured at constant prices.

Question 55

What formula calculates the change in GDP?

Answer 55

The formula for change in GDP is (GDP of current year - GDP of previous year) * 100.

Question 56

How are consumer goods different from capital goods?

Answer 56

Consumer goods are directly consumed by individuals, such as food and appliances, while capital goods are used by businesses to produce other goods or services.

Question 57

What is the base year?

Answer 57

The base year is the year that is used to measure the real GDP. The prices in the base year are used as the standard for comparing prices in other years.

Question 58

How is the change in GDP calculated?

Answer 58

The change in GDP is calculated by subtracting the GDP of the previous year from the GDP of the current year. The result is expressed as a percentage.

Question 59

What are intermediate goods used for?

Answer 59

Intermediate goods are used by businesses in the production process to create final goods or consumer goods.

Question 60

What does the Exclusive Economic Zone (EEZ) encompass?

Answer 60

The Exclusive Economic Zone extends 200 nautical miles from a country’s coast and grants the country special rights over exploration and use of marine resources in that area.