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Consider the following statements.
1. Recession is defined as a fall in the overall economic activity for two consecutive quarters accompanied by a decline in income, sales and employment.
2. India's economy has now formally entered into a technical recession.
3. Gross Value Added (GVA) data provides a measure of national income by looking at the value-added sectors of the economy.
Which of the above statements is/are correct?
- a)1 and 2 only
- b)1 and 3 only
- c)2 and 3 only
- d)All of the above
Correct answer is option 'D'. Can you explain this answer?
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Consider the following statements.1. Recession is defined as a fall i...
According to the official data released recently, India's gross domestic product (GDP) contracted by 7.5% during the July, August, and September quarter. This means that in Q2 of 2020-21 India produced 7.5% fewer goods and services compared to what India produced in Q2 of 2019-20.
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In the process, India's economy has now formally entered into a technical recession because — along with the nearly 24% contraction in Q1 — India has had two consecutive quarters when GDP growth rate has declined.
Recession is defined as a fall in the overall economic activity for two consecutive quarters (six months) accompanied by a decline in income, sales and employment.
Gross Value Added (GVA) data provides a measure of national income by looking at the value-added by different economic sectors in that quarter. If you want to compare which parts of the economy improved production and incomes from one quarter to another, the GVA is more apt.
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Consider the following statements.1. Recession is defined as a fall i...
Explanation:
Statement 1: Recession is defined as a fall in the overall economic activity for two consecutive quarters accompanied by a decline in income, sales, and employment.
- This statement is correct. Recession is typically defined as a significant decline in economic activity, usually measured by a decrease in Gross Domestic Product (GDP), for two consecutive quarters. During a recession, there is a decline in income, sales, and employment as businesses and consumers cut back on spending.
Statement 2: India's economy has now formally entered into a technical recession.
- This statement is correct. According to the data released by the National Statistical Office (NSO), India's GDP contracted by 7.5% in the second quarter (July-September) of the financial year 2020-21. This follows a contraction of 23.9% in the first quarter (April-June) of the same year. As the GDP has declined for two consecutive quarters, India's economy has entered into a technical recession.
Statement 3: Gross Value Added (GVA) data provides a measure of national income by looking at the value-added sectors of the economy.
- This statement is correct. Gross Value Added (GVA) is a measure of the value of goods and services produced in an economy, minus the value of intermediate goods and services used in production. It provides a measure of the contribution of different sectors of the economy to overall economic growth. GVA data is often used as an indicator of national income and can help to understand the performance of different sectors of the economy.
Conclusion:
- All three statements are correct. Recession is defined as a fall in economic activity accompanied by a decline in income, sales, and employment for two consecutive quarters. India's economy has entered into a technical recession as GDP has contracted for two consecutive quarters. Gross Value Added (GVA) data provides a measure of national income by looking at the value-added sectors of the economy.
Statement 1: Recession is defined as a fall in the overall economic activity for two consecutive quarters accompanied by a decline in income, sales, and employment.
- This statement is correct. Recession is typically defined as a significant decline in economic activity, usually measured by a decrease in Gross Domestic Product (GDP), for two consecutive quarters. During a recession, there is a decline in income, sales, and employment as businesses and consumers cut back on spending.
Statement 2: India's economy has now formally entered into a technical recession.
- This statement is correct. According to the data released by the National Statistical Office (NSO), India's GDP contracted by 7.5% in the second quarter (July-September) of the financial year 2020-21. This follows a contraction of 23.9% in the first quarter (April-June) of the same year. As the GDP has declined for two consecutive quarters, India's economy has entered into a technical recession.
Statement 3: Gross Value Added (GVA) data provides a measure of national income by looking at the value-added sectors of the economy.
- This statement is correct. Gross Value Added (GVA) is a measure of the value of goods and services produced in an economy, minus the value of intermediate goods and services used in production. It provides a measure of the contribution of different sectors of the economy to overall economic growth. GVA data is often used as an indicator of national income and can help to understand the performance of different sectors of the economy.
Conclusion:
- All three statements are correct. Recession is defined as a fall in economic activity accompanied by a decline in income, sales, and employment for two consecutive quarters. India's economy has entered into a technical recession as GDP has contracted for two consecutive quarters. Gross Value Added (GVA) data provides a measure of national income by looking at the value-added sectors of the economy.
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Consider the following statements.1. Recession is defined as a fall in the overall economic activity for two consecutive quarters accompanied by a decline in income, sales and employment.2. India's economy has now formally entered into a technical recession.3. Gross Value Added (GVA) data provides a measure of national income by looking at the value-added sectors of the economy.Which of the above statements is/are correct?a) 1 and 2 onlyb) 1 and 3 onlyc) 2 and 3 onlyd) All of the aboveCorrect answer is option 'D'. Can you explain this answer?
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Consider the following statements.1. Recession is defined as a fall in the overall economic activity for two consecutive quarters accompanied by a decline in income, sales and employment.2. India's economy has now formally entered into a technical recession.3. Gross Value Added (GVA) data provides a measure of national income by looking at the value-added sectors of the economy.Which of the above statements is/are correct?a) 1 and 2 onlyb) 1 and 3 onlyc) 2 and 3 onlyd) All of the aboveCorrect answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements.1. Recession is defined as a fall in the overall economic activity for two consecutive quarters accompanied by a decline in income, sales and employment.2. India's economy has now formally entered into a technical recession.3. Gross Value Added (GVA) data provides a measure of national income by looking at the value-added sectors of the economy.Which of the above statements is/are correct?a) 1 and 2 onlyb) 1 and 3 onlyc) 2 and 3 onlyd) All of the aboveCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements.1. Recession is defined as a fall in the overall economic activity for two consecutive quarters accompanied by a decline in income, sales and employment.2. India's economy has now formally entered into a technical recession.3. Gross Value Added (GVA) data provides a measure of national income by looking at the value-added sectors of the economy.Which of the above statements is/are correct?a) 1 and 2 onlyb) 1 and 3 onlyc) 2 and 3 onlyd) All of the aboveCorrect answer is option 'D'. Can you explain this answer?.
Consider the following statements.1. Recession is defined as a fall in the overall economic activity for two consecutive quarters accompanied by a decline in income, sales and employment.2. India's economy has now formally entered into a technical recession.3. Gross Value Added (GVA) data provides a measure of national income by looking at the value-added sectors of the economy.Which of the above statements is/are correct?a) 1 and 2 onlyb) 1 and 3 onlyc) 2 and 3 onlyd) All of the aboveCorrect answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements.1. Recession is defined as a fall in the overall economic activity for two consecutive quarters accompanied by a decline in income, sales and employment.2. India's economy has now formally entered into a technical recession.3. Gross Value Added (GVA) data provides a measure of national income by looking at the value-added sectors of the economy.Which of the above statements is/are correct?a) 1 and 2 onlyb) 1 and 3 onlyc) 2 and 3 onlyd) All of the aboveCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements.1. Recession is defined as a fall in the overall economic activity for two consecutive quarters accompanied by a decline in income, sales and employment.2. India's economy has now formally entered into a technical recession.3. Gross Value Added (GVA) data provides a measure of national income by looking at the value-added sectors of the economy.Which of the above statements is/are correct?a) 1 and 2 onlyb) 1 and 3 onlyc) 2 and 3 onlyd) All of the aboveCorrect answer is option 'D'. Can you explain this answer?.
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ample number of questions to practice Consider the following statements.1. Recession is defined as a fall in the overall economic activity for two consecutive quarters accompanied by a decline in income, sales and employment.2. India's economy has now formally entered into a technical recession.3. Gross Value Added (GVA) data provides a measure of national income by looking at the value-added sectors of the economy.Which of the above statements is/are correct?a) 1 and 2 onlyb) 1 and 3 onlyc) 2 and 3 onlyd) All of the aboveCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice UPSC tests.
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