Ramesh Singh Test: Economics - 2

The top 5 biggest GDPs in the world are USA, China, Japan, Germany and India (2019-20) 

Intermediate goods refer to those goods which are used either for resale or for further production. Final goods refer to those goods which are used for final consumption.
Options a, b and c are intermediate goods where as option d is a final good as it is directly consumed by the user. 

The correct option is Option C.

There are four main aggregate expenses to measure GDP: household consumption, corporate investment, government spending on goods and services, and net exports, which are equivalent to exports minus imports of goods and services.

Till 2015, GDP was measured in terms of factor cost at constant prices. This has been changed from 2015 onwards, GDP at market cost and at constant prices will be considered as India’s GDP. 

MCA21 is an e-Governance initiative of Ministry of Corporate Affairs (MCA), Government of India that enables an easy and secure access of the MCA services to the corporate entities, professionals and citizens of India 
The MCA21 application is designed to fully automate all processes related to the proactive enforcement and compliance of the legal requirements under the Companies Act, 1956, New Companies Act, 2013 and Limited Liability Partnership Act, 2008. This will help the business community to meet their statutory obligations.

Macroeconomics studies larger phenomena such as inflation, price levels, rate of economic growth, national income, gross domestic product (GDP), and changes in unemployment etc.
Microeconomics: Microeconomics is a branch of economics that studies the behavior of individual units in making decisions regarding the allocation of scarce resources and the interactions among these individual units. 

GVA at basic prices = factor cost + (Production taxes - Production subsidies) 
Examples of production taxes are land revenues, stamps and registration fees and tax on profession. Examples of production subsidies include, input subsidies to farmers, subsidies to village and small industries, administrative subsidies to corporations or cooperatives, etc Some examples of product taxes are excise tax, sales tax, service tax and import and export duties. Product subsidies include food, petroleum and fertilizer subsidies, interest subsidies given to farmers, households, etc.

Gross National Product (GNP) is the total value of goods and services produced by the people of a country in a given year. It is not territory specific.
GNP = GDP + Net Factor Income from Abroad (NFIA) 

Only those goods and services which have a monetary value affixed to them are considered while calculating GDP.

Net factor income from abroad is included in GNP
GDP gives importance to where goods and services are produced.
Negative externalities such as environmental pollution are not considered while calculating GDP

C is the correct option. Both Are correct.

• Growth is the expansion of some object, institution or population which is measurable and is always quantitative whereas development is related to qualitative improvement,” said the Reader of the department of Economics, Mangalore University Prof Shripathi Kalluraya.
• Inclusive growth is a concept that advances equitable opportunities for economic participants during economic growth with benefits incurred by every section of society. The definition of inclusive growth implies direct links between the macroeconomic and microeconomic determinants of the economy and economic growth.
   

Remittances are money sent home from emigrants working abroad. It is included in GNP and not GDP because GDP takes in to account the value of only those goods and services which are produced within the country. 

In terms of Purchasing Power Parity (PPP) terms, India is the third largest economy in the world behind US and China. 

HDI was developed by a team of economists led by Pakistani economist Mahbub ul Haq .

The United Nations Development Programme (UNDP) published its first Human Development Report (HDR) in 1990. 

HDI measures human development in a country using 3 indicators,
Health: The health component is measured using the life expectancy at birth in the country.
Education: Education component is measured using a. Expected years of schooling for children of school entering age b. Mean years of schooling for adults aged 25 years and above.
Standard of living: This component is measured using per capita income (in US dollars). 

India is ranked 129 out of 189 countries on the 2019 Human Development Index (HDI) improving from the 130^th position in 2018.
Sri Lanka (71) is the best performing country in South Asian region.
Niger is ranked 189^th (Last ranked country)
Position of BRICS countries in the HDI 2019: 
Brazil -79.
Russia- 49.
China-85
South Africa- 113
India-129

D is the correct option. None of the statements are true.The GII is built on the same framework as the IHDI—to better expose differences in the distribution of achievements between women and men. It measures the human development costs of gender inequality. Thus the higher the GII value the more disparities between females and males and the more loss to human development. 

Sri Lanka (71) and China (85) Bhutan (134), Bangladesh (135), Myanmar (145), Nepal (147), Pakistan (152) and Afghanistan (170). 

The phrase ‘gross national happiness’ was first coined by the 4th King of Bhutan, King Jigme Singye Wangchuck, in 1972 when he declared, “Gross National Happiness is more important than Gross Domestic Product.”
The following 4 parameters are used to measure the happiness,
1. Higher per capita income
2. Good Governance
3. Environmental protection
4. Cultural promotion (i.e., inculcation of ethics and spiritual values in life without which, progress may become curse rather than a blessing).