Question
Due to which of the following reasons increase in
absolute and per capita real GNP do not connote a higher level of economic development?Solution
Per capita GNP is the total value of all the goods and services produced by a country in a year including income from foreign investments, divided by the number of people living there. For countries which have a lot of foreign investments, GNP per capita is a more accurate economic indicator. GNP = GDP + Net income inflow from abroad – Net income outflow to foreign countries. Therefore, if gains of increase in per capita income are grabbed by a small section of society (i.e. poverty and unemployment has increased and the increase in GNP is with a smaller section of population), then economic growth will not lead to economic development.
Which of the following methods is used to control inflation in India?
When a price ceiling is imposed in a market,
Which of the following may lead to a shift in the demand curve?
Which of the following statement is correct about the situation in the economy?
Which of the following should be excluded while calculating Gross national Product?
If a 1 percent decrease in the price of a pound of squash results in a larger percentage decrease in the quantity supplied,
Which of the following asset belongs to the flow concept?
An inferior good is one for which an increase in income causes a(n)
Price elasticity of demand of a horizontal demand curve is called:
Which of the following will have the largest value while calculating national income?
