GDP, GNP, NNP Concepts — Prelims Questions

Consider the following statements regarding national income accounting: 1. Gross Domestic Product (GDP) measures the total value of goods and services produced by a country's residents, irrespective of their location. 2. Net Factor Income from Abroad (NFIA) is added to GDP to arrive at Gross National Product (GNP). 3. Net National Product (NNP) at factor cost is generally considered the 'National Income'. Which of the statements given above is/are correct?

If Nominal GDP of a country is ₹2000 billion in year X and Real GDP for the same year, using year Y as the base year, is ₹1600 billion, what is the GDP Deflator for year X?

Which of the following would lead to a situation where a country's Gross National Product (GNP) is lower than its Gross Domestic Product (GDP)? 1. High remittances received by domestic residents from abroad. 2. Significant profits repatriated by foreign companies operating within the country. 3. A large number of domestic workers employed in foreign countries. 4. Substantial interest payments made to foreign investors on domestic government bonds.

Which of the following is NOT a limitation of Gross Domestic Product (GDP) as a measure of economic welfare?

Consider the following statements: 1. NNP at market price is obtained by subtracting Net Indirect Taxes from NNP at factor cost. 2. Depreciation is also known as Capital Consumption Allowance. 3. Simon Kuznets is credited with pioneering the systematic measurement of national income aggregates. Which of the statements given above is/are correct?