National Income Accounting — Prelims Questions

Consider the following statements about India's national income accounting: 1. The base year for GDP calculation is currently 2011-12 2. GDP at factor cost includes indirect taxes but excludes subsidies 3. The expenditure method calculates GDP as C + I + G + (X - M) 4. Net National Product is always less than Gross National Product Which of the statements given above are correct?

Which of the following is NOT included in the calculation of Gross Domestic Product (GDP) by the expenditure method?

In the context of national income accounting, what does the term 'imputed value' refer to?

Consider the following about the relationship between different national income aggregates: 1. GNP = GDP + Net factor income from abroad 2. NNP = GNP - Depreciation 3. Personal Income = National Income - Corporate taxes - Undistributed profits + Transfer payments 4. Disposable Income = Personal Income - Personal taxes How many of the above relationships are correct?

The 'base year' in national income accounting is important because: