GDP

Question 1

What is GDP ?

Answer 1

The final value of goods and services produced inside the boarder of the country in a year.

Question 2

Importance of the GDP ?

Answer 2

1. International comparison.
2. Fiscal planning.
3. Formulating policies.
4. Measure the standard of living.
5. Decision making for business and investment.
6. Measure the economic productivity of the country.
7. Forecasting economy.

Question 3

What was the Nominal GDP of Nepal in 2022 ?

Answer 3

$ 40.8 billion.

Question 4

What was the Real GDP of Nepal in 2021 ?

Answer 4

$ 36.29 billion.

Question 5

What are GDP contribution of
i) Agriculture.
ii) Remittance.
iii) Tourism.

Answer 5

i) Agriculture : 25 %
ii) Remittance : 22 %
iii) Tourism : 10 %

Question 6

What are the significance of GDP ?

Answer 6

1. Fiscal planning.
2. Measure the standard of living.
3. Formulating policies.
4. Decision making for businesses and investments.
5. International comparison.
6. Measure the productivity of the economy.
7. Economic Forecasting.

Question 7

What is Real GDP ?

Answer 7

• The measurement of the final value of goods
  and services produced in the country in a year
  by adjusting inflation.
• It takes in account the changes in price level
  over the time.
• It takes consideration of the inflation and
  deflation by using the constant price level,
  which refer as base year or reference year.
• It is most accurate way of measuring the GDP
  of the country

Question 8

What is Nominal GDP ?

Answer 8

• The measurement of the final value of goods
  and services produced in the country in a year,
  measured in current prices.
• Current prices are the prices of goods and
  services that are prevailing in the market at
  the time of production.
• It does not take into account changes in the
  price level, such as inflation or deflation.

Question 9

What are the limitations of GDP?

Answer 9

1. Distribution of income.
2. Quality of life.
3. Non-market activities.
4. Underground economy.
5. Natural Disasters.
6. Environmental factors ( unintended negative externalities)

Question 10

What are the causes for the low GDP growth rate in Nepal ?

Answer 10

1. Limited Infrastructure.
2. High dependence on agriculture.
3. Political instability.
4. Human Capital Challenges.
5. Trade imbalance.
6. Natural calamities.
7. Weak financial sectors.
8. Limited Industrial Diversification.