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Which method is usually used for calculating the purchasing power parity by the IMF?
- a)Gross Domestic Product
- b)Net domestic product
- c)Net National Product
- d)Gross National Product
Correct answer is option 'A'. Can you explain this answer?
Which method is usually used for calculating the purchasing power parity by the IMF?
a)
Gross Domestic Product
b)
Net domestic product
c)
Net National Product
d)
Gross National Product
|
Deepa Iyer answered |
- GNP is the 'national income' according to which the IMF ranks the nations of the world in terms of the volumes—at purchasing power parity (PPP).
- India is ranked as the 3rd largest economy of the world (after China and the USA), while as per the nominal/ prevailing exchange rate of the rupee, India is the 7th largest economy (IMF, April 2016). Now such comparisons are done using the GDP, too.
Consider the following statements:
1. If the national income is being derived at ‘Factor Cost', the indirect taxes do not need to be deducted from it.
2. In this case, the government does not have to add their income accruing from indirect taxes to the national income.
Which of these statements is/ are correct?
- a)1 Only
- b)Both 1 and 2
- c)2 Only
- d)None of the above
Correct answer is option 'C'. Can you explain this answer?
Consider the following statements:
1. If the national income is being derived at ‘Factor Cost', the indirect taxes do not need to be deducted from it.
2. In this case, the government does not have to add their income accruing from indirect taxes to the national income.
Which of these statements is/ are correct?
a)
1 Only
b)
Both 1 and 2
c)
2 Only
d)
None of the above
|
Kabir Verma answered |
- If the national income is being derived at ‘market cost, the indirect taxes do not need to be deducted from it.
- In this case, the government does not have to add their income accruing from indirect taxes to the national income. It means that the confusion in the case of national income accounting at factor cost is only related to indirect taxes.
Consider the following pairs:1. Gross Domestic Product (GDP): Total value of all final goods and services produced within a nation's boundaries during a one-year period.2. Net Domestic Product (NDP): GDP minus income from abroad.3. Gross National Product (GNP): GDP adjusted for depreciation.4. Net National Product (NNP): GNP minus depreciation.How many pairs given above are correctly matched?- a)Only two pair
- b)Only one pairs
- c)Only three pairs
- d)All four pairs
Correct answer is option 'A'. Can you explain this answer?
Consider the following pairs:
1. Gross Domestic Product (GDP): Total value of all final goods and services produced within a nation's boundaries during a one-year period.
2. Net Domestic Product (NDP): GDP minus income from abroad.
3. Gross National Product (GNP): GDP adjusted for depreciation.
4. Net National Product (NNP): GNP minus depreciation.
How many pairs given above are correctly matched?
a)
Only two pair
b)
Only one pairs
c)
Only three pairs
d)
All four pairs
|
Upsc Toppers answered |
1. Gross Domestic Product (GDP): Correctly matched. GDP is indeed the total value of all final goods and services produced within a nation's boundaries during a one-year period.
2. Net Domestic Product (NDP): Incorrectly matched. NDP is actually GDP minus depreciation, not income from abroad.
3. Gross National Product (GNP): Incorrectly matched. GNP is GDP plus income from abroad, not adjusted for depreciation.
4. Net National Product (NNP): correctly matched.
Alternatively, NNP can be calculated as:
NNP=Gross National Product−DepreciationNNP=Gross National Product−Depreciation
Consider the following statements:1. The Market Economy, as discussed by Adam Smith, operates primarily through government regulations.2. In a Socialist model, the state controls natural resources but not labor.3. The Non-Market Economy is also known as a command economy or centrally planned economy.Which of the statements given above is/are correct?- a)1 Only
- b)1 and 2 Only
- c)2 and 3 Only
- d)3 Only
Correct answer is option 'D'. Can you explain this answer?
Consider the following statements:
1. The Market Economy, as discussed by Adam Smith, operates primarily through government regulations.
2. In a Socialist model, the state controls natural resources but not labor.
3. The Non-Market Economy is also known as a command economy or centrally planned economy.
Which of the statements given above is/are correct?
a)
1 Only
b)
1 and 2 Only
c)
2 and 3 Only
d)
3 Only
|
Lakshya Ias answered |
1. The Market Economy, as discussed by Adam Smith, operates primarily through government regulations. *(Incorrect)*: Adam Smith's Market Economy is characterized by minimal government intervention, emphasizing the "invisible hand" of the market forces of demand and supply. It operates through laissez-faire policies, which advocate for non-interference by the government.
2. In a Socialist model, the state controls natural resources but not labor. *(Incorrect)*: In the Socialist model, the state controls both natural resources and labor. This ensures that resources are used for the well-being of all and prevents economic inequality by eliminating private property rights.
3. The Non-Market Economy is also known as a command economy or centrally planned economy. *(Correct)*: The Non-Market Economy, often linked to socialism and communism, is indeed referred to as a command economy or centrally planned economy. In this system, the state makes all economic decisions and controls the production and distribution of goods.
Therefore, the correct answer is Option D (3 Only).
What does the Beijing Consensus propose as an alternative to the policies advocated by the Washington Consensus?- a)Constant experimentation and innovation
- b)Reduced state intervention in economies
- c)Imposition of neoliberal policies on nations
- d)Market fundamentalism and globalization
Correct answer is option 'A'. Can you explain this answer?
What does the Beijing Consensus propose as an alternative to the policies advocated by the Washington Consensus?
a)
Constant experimentation and innovation
b)
Reduced state intervention in economies
c)
Imposition of neoliberal policies on nations
d)
Market fundamentalism and globalization
|
K.L Institute answered |
The Beijing Consensus, introduced as an alternative to the Washington Consensus, emphasizes constant experimentation and innovation as one of its core pillars. This approach contrasts with the Washington Consensus's focus on neoliberal policies and market fundamentalism. The Beijing Consensus advocates for gradual reforms, peaceful distributive growth, and selective incorporation of foreign ideas, offering a different perspective on economic development and governance.
Consider the following statements:Statement-I: India switched to calculating national income at market price in January 2015.Statement-II: The transition to market price calculation was facilitated by GST implementation.Which one of the following is correct in respect of the above statements?- a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
- b)Statement-I is correct, but Statement-II is incorrect
- c)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
- d)Statement-I is incorrect, but Statement-II is correct
Correct answer is option 'B'. Can you explain this answer?
Consider the following statements:
Statement-I: India switched to calculating national income at market price in January 2015.
Statement-II: The transition to market price calculation was facilitated by GST implementation.
Which one of the following is correct in respect of the above statements?
a)
Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
b)
Statement-I is correct, but Statement-II is incorrect
c)
Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
d)
Statement-I is incorrect, but Statement-II is correct
|
Saptarshi Majumdar answered |
Understanding the Statements
The question revolves around two statements regarding India's national income calculation methodology and the impact of the Goods and Services Tax (GST).
Statement-I: India switched to calculating national income at market price in January 2015.
- This statement is incorrect.
- India has been using market prices to calculate national income for several years prior to 2015. The shift in methodology in 2015 was more about revising the base year for GDP calculations and adopting a new series based on the 2011-12 base year.
Statement-II: The transition to market price calculation was facilitated by GST implementation.
- This statement is also incorrect in the context provided.
- While the GST, implemented in July 2017, aimed to streamline the taxation system and improve revenue collection, it did not directly facilitate a switch to market price calculation for national income.
Correct Answer Explanation
- Since Statement-I is incorrect, and Statement-II, while partially related to economic reforms, does not accurately explain or relate to the transition mentioned in Statement-I, the correct answer is option B: "Statement-I is correct, but Statement-II is incorrect."
Conclusion
- In summary, the confusion stems from the timing and nature of the calculations. India's national income calculations have been based on market prices long before 2015, and while GST is an important reform, it did not trigger a change in the national income calculation methodology. Therefore, the option stating that Statement-I is correct and Statement-II is incorrect is the most accurate.
The question revolves around two statements regarding India's national income calculation methodology and the impact of the Goods and Services Tax (GST).
Statement-I: India switched to calculating national income at market price in January 2015.
- This statement is incorrect.
- India has been using market prices to calculate national income for several years prior to 2015. The shift in methodology in 2015 was more about revising the base year for GDP calculations and adopting a new series based on the 2011-12 base year.
Statement-II: The transition to market price calculation was facilitated by GST implementation.
- This statement is also incorrect in the context provided.
- While the GST, implemented in July 2017, aimed to streamline the taxation system and improve revenue collection, it did not directly facilitate a switch to market price calculation for national income.
Correct Answer Explanation
- Since Statement-I is incorrect, and Statement-II, while partially related to economic reforms, does not accurately explain or relate to the transition mentioned in Statement-I, the correct answer is option B: "Statement-I is correct, but Statement-II is incorrect."
Conclusion
- In summary, the confusion stems from the timing and nature of the calculations. India's national income calculations have been based on market prices long before 2015, and while GST is an important reform, it did not trigger a change in the national income calculation methodology. Therefore, the option stating that Statement-I is correct and Statement-II is incorrect is the most accurate.
Consider the following statements:1. The World Bank recognized the necessity of state intervention in the economy, deviating from its previous stance in support of free market principles.2. By the mid-1980s, non-market economies began to adapt and incorporate elements of market economies.3. France was the first country to officially adopt national planning in the early 1930s, signaling the formal adoption of the mixed economic system.Which of the statements given above is/are correct?- a)1 Only
- b)1 and 2 Only
- c)1 and 3 Only
- d)1, 2 and 3
Correct answer is option 'B'. Can you explain this answer?
Consider the following statements:
1. The World Bank recognized the necessity of state intervention in the economy, deviating from its previous stance in support of free market principles.
2. By the mid-1980s, non-market economies began to adapt and incorporate elements of market economies.
3. France was the first country to officially adopt national planning in the early 1930s, signaling the formal adoption of the mixed economic system.
Which of the statements given above is/are correct?
a)
1 Only
b)
1 and 2 Only
c)
1 and 3 Only
d)
1, 2 and 3
|
EduRev UPSC answered |
Statement 1: Correct. The World Bank acknowledged the necessity of state intervention in the economy, moving away from its earlier support for free market principles. This shift recognized the limitations of a purely market-driven approach and the importance of state involvement in addressing economic issues.
Statement 2: Correct. By the mid-1980s, non-market economies began to integrate elements of market economies, signifying a trend towards the mixed economic system. This adaptation was part of a broader recognition that a blend of market and state mechanisms was necessary for optimal economic performance.
Statement 3: Incorrect. France officially adopted national planning in 1944-45, not the early 1930s. This period marked the formal adoption of the mixed economic system in France, following the disruptions caused by World War II.
Therefore, the correct answer is Option B: 1 and 2 Only.
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