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Which of the following are correct with respect to economic indicators?
1. When Capital Consumption Allowance is taken out from GDP, the resultant is Net Domestic Product or NNP.
2. Net Factor Income subtracted from GDP, gives the value of Gross National Product or GNP.
3. Genuine progress Indicators take into account everything that GDP does, but also add factors like cost of crime, cost of pollution, etc.; i.e. negative effects of economic activity.
Choose the correct answer from the codes given below
1,2,3
1 and 2
1 and 3
2 and 3
Only statements 1&3 correct.
The capital consumption allowance (CCA) represents depreciation in the overall economy and is expressed as a percentage of GDP. Removing the capital cost allowance from GDP gives you the net domestic product for that year.
GNP measures the output of a country's citizens and businesses, whether they are located within its borders or elsewhere. Thus, net factor income is defined as the difference between a country's gross national product (GNP) and gross domestic product (GDP).
A genuine progress indicator (GPI) is a metric used to measure the economic growth of a country. It is often considered an alternative metric to the more well-known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account but adds other figures that represent the cost of the negative effects related to economic activity, such as the cost of crime, cost of ozone depletion, and cost of resource depletion, among others.
The GPI nets the positive and negative results of economic growth to examine whether or not it has benefited people overall.
Hence option 3rd is correct.
By: Abhipedia ProfileResourcesReport error
Yogyata3
second point is incorrect
Rectified
Gaurav Anand
sir check this as domestic + NFIA = National so 2nd statement should be wrong
Sahil rana
About Statement 2: isn't GDP+NFIA=GNP ? shouldn't statement 2 be incorrect ..?
About Statement 2: isn't GDP+NFIA=GNP ?
Dr. Aashish Singh
Statement 2 is wrong as GDP+ nfifa = GNP, and it says GDP-NFIFA= GNP
abhimanu admin
Both +/- takes place.
Radhika Bansal
2nd statement is wrong as GDP + NFIFA= GNP (not subtracted)
Net factor income ( income from foreign nationals) is subtracted and Net factor Income from Abroad ( Income from nationals residing outside) is added.
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