National Accounts, GDP Concepts & Union Budget Part 2
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Indian Economy and Indian Financial System — JAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What does GDP stand for and what does it measure?
GDP stands for Gross Domestic Product and measures the total monetary value of all final goods and services produced within a country's borders in a specific time period.
What is the difference between Gross Domestic Product and Gross National Income?
GDP measures output within borders; GNI includes net factor income from abroad.
What is the difference between GDP at market price and GDP at factor cost?
GDP at market price includes net indirect taxes (indirect taxes minus subsidies), whereas GDP at factor cost excludes these taxes and subsidies, representing only factor incomes.
What is meant by Net Factor Income from Abroad (NFIA)?
Earnings of residents abroad minus earnings of foreigners within the country.
How is Net Domestic Product (NDP) derived from GDP?
NDP is derived by deducting depreciation (consumption of fixed capital) from GDP, i.e., NDP = GDP – Depreciation.
How is Gross National Product (GNP) calculated from GDP?
GNP equals GDP plus Net Factor Income from Abroad.
What is the distinction between Gross National Product (GNP) and GDP?
GNP equals GDP plus net factor income from abroad (income earned by residents overseas minus income earned by foreigners domestically), making it a measure of national rather than domestic output.
What is Capital Consumption Allowance (CCA) in national accounts?
Allowance for depreciation of capital stock during the production process.
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