Economic Terms

Question 1

Net Production taxes

Answer 1

Ex. Land, registration fee

Question 2

Net Product Taxes

Answer 2

Paid per unit Product. Ex. Excise tax

Question 3

GDP at Factor Cost

Answer 3

• Reported by CSO. Revised in 2015. Replaced by GVA at Basic Prices
• Most highlighted measure of National Income

Question 4

GDP at Market Price

Answer 4

• Now most used. Now called GDP only

- C + I + G + X - M

Question 5

Factor Cost

Answer 5

• Only payment to Factors of Production
• Not include tax
• Market Price - Indirect Taxes

Question 6

GVA

Answer 6

• GDP - Indirect Taxes

- Help know GDP - Tax link

Question 7

GVA at Factor Cost

Answer 7

GVA at Basic price - Net production taxes

Question 8

GVA at Basic Price

Answer 8

• GVA at Basic Price = GVA at Factor Cost + Production Taxes (therefore not include Product Taxes)
• Value of total output produced in economy - Value of intermediate consumption
• GVA (MP) - Net Product taxes

Question 9

Market Price

Answer 9

MP = Factor cost + Total indirect taxes - Total subsidies

Question 10

GVA at Market Price

Answer 10

• GVA at Basic Price + Net Product Taxes

- is equal to GDP (MP)

Question 11

Externalities

Answer 11

Benefits / harm a firm / individual cause to another for which they are not paid / penalized

Question 12

Private income

Answer 12

Factor Income from NDP to pvt sector + National Debt interest + Net factor income from abroad + Current transfers from govt + Other net transfers from RoW

Question 13

GDP

Answer 13

aggregate production of final GnS taking place in Domestic Economy during a year

Question 14

GNP

Answer 14

GDP + Factor income earned by Domestic FoP abroad - FI earned by FoP of rest of world in Domestic economy

Question 15

NNP

Answer 15

GNP - Depreciation

Question 16

GDP, GNP and NNP include Taxes?

Answer 16

• Yes, they all include Indirect Taxes as they are calculated at MARKET PRICE
• also include subsidies given by Govt

Question 17

NNP at factor cost

Answer 17

• Aka National Income

- = NNP at Market Price - net indirect taxes (Indirect tax - subsidies)

Question 18

Undistributed Profits

Answer 18

Profits earned by Govt and Firms not distributed among Factors of Production

Question 19

Personal Income

Answer 19

NI - undistributed profits - net interst payments paid by HH - corporate tax + transfer payments to HH by govt and firms

Question 20

Personal disposable income

Answer 20

Personal income - Personal tax payments - non tax payments

Question 21

National disposable income

Answer 21

NNP at mkt price + other current transfers from rest of world (gifts, aids)

Question 22

National Income

Answer 22

NNP at Factor Cost - Indirect Taxes + Subsidies

Question 23

GDP at Market Price

Answer 23

C + I + G + X - M

Question 24

GDP at Factor cost

Answer 24

• GDP(atMP) - Net Product Taxes

- GDP(atMP) - Net Indirect Taxes

Question 25

NDP at Market Price

Answer 25

- GDP (MP) - Depreciation | - allow policy makers calculate how much country has to spend to maintain Current GDP

Question 26

NDP at Factor cost

Answer 26

NDP (MP) - Net product Taxes - Net Production Taxes

Question 27

GNP at Market Price

Answer 27

- value of all final GnS product by residents of India and measured at MP in a year - whether within indian boundary or outside - GDP (MP) + NFIA

Question 28

GNP at Factor Cost

Answer 28

- value of output received by FoP belonging to a country in a year - GNP (MP) - Net product taxes - Net Production Taxes

Question 29

NNP at Market Price

Answer 29

- How much country can produce in a given time. Output regardless of where production - GNP (MP) - Depreciation - NDP (MP) + NFIA

Question 30

NNP at Factor Cost

Answer 30

- sum of all income earned by all FoP belonging to a country in a year - NNP (MP) - net product taxes - Net production taxes - NDP (FC) + NFIA

Question 31

What is National Product

Answer 31

NNP at Factor cost - not bound by production in national boundaries

Question 32

Real GDP

Answer 32

- GnS evaluated at constant set of price | - since price fix - if real GDP change = mean volume of Production changing

Question 33

Nominal GDP

Answer 33

Value of GDP at current prices

Question 34

GDP Deflation

Answer 34

Nominal GDP / Real GDP

Question 35

CPI v/s GDP Deflator

Answer 35

- Not represent all GnS produced in country. GDP deflator does - CPI include price of goods imported. GDP deflator does not - CPI weights are constant. In GDP deflator they are different, according to Production level

Question 36

Mercantilism

Answer 36

- Increasing exports. Manipulating Prices | - two types - US and China.

Question 37

Potential GDP

Answer 37

Max Can produce without inflating economy

Question 38

Output GDP

Answer 38

actual production

Question 39

Per Capita Income

Answer 39

GDP or GDP / Mid year population of corresponding year

Question 40

Approaches to measure GDP

Answer 40

- Expenditure - Output - Income

Question 41

Civic Capital

Answer 41

Citizenry working together to facilitate rights

Question 42

National Account Statistics

Answer 42

- By CSO in MoSPI - Estimates = 1st estimate of growth of current year = Advanced Estimate ⇒ Revised to Quick Estimate ⇒ Provisional Estimate ⇒ Final Estimate

Question 43

Genuine Progress Indicator

Answer 43

- Redefining progress | - Env + social Factors

Question 44

Big Mac Index

Answer 44

- The Economist | - PPP based

Question 45

WB Classification

Answer 45

- PCI - Low - 1005 US dollars - Lower Middle - 1005 - 3955 US dollars - Upper Middle - 3956 - 12235 US dollars - High - 12235 US dollars

Question 46

UN LDC

Answer 46

- PCI > 1035 US Dollars = LDC - eco vulnerable, HR weak - Review criteria every 3 years - Currently 47 countries

Question 47

Betterlife Index

Answer 47

OECD

Question 48

Commission on Measure of Economic and Social Progress

Answer 48

- Joseph Stilgitz + French govt | - if wealth and social progress can be measured - Alternative to GDP