Gross Domestic Product (GDP) Assignment

Assignment Task

Questions

1. The average prices of goods and services in a capitalist country

• Remains stable over time
• Behaves erratically over time
• Falls over time
• Rises all the time

2. We get the GDP of a country in a given period by adding up

• The values of outputs of the given period of all the firms located within the geographical boundary of country
• The values of outputs of the given period of all the firms owned by the citizens of the given country
• The gross value added of the given period of all the firms owned by the citizens of the given country
• The gross value added of the given period of all the firms located within the geographical boundary of country

3. The value of the sold part of the output of a firm in a given period

• Is estimated at the price prevailing at the beginning of the given period
• Is taken to be equal to the revenue earned from its sale
• Is estimated at the price prevailing at the end of the given period
• Is estimated at the price prevailing in the middle of the given period

4. Suppose in a given country in a given period the NDP is Rs.1000, wages and salaries paid by the domestic government administration and defence in the given period is Rs.100, domestic private firms and domestic public sector enterprises in the given period paid to the government in indirect taxes and received from the government in subsidies Rs. 100 and Rs.50 respectively. The GDP of the country in the given period is

• Rs. 200
• Rs. 250
• Rs. 275
• Rs. 300

5. In a country, the government imposes indirect taxes only on luxury goods and uses all its indirect tax revenue to give subsidies to the production of necessities. In such a country

• NI will be larger than NNP
• NI may be larger or smaller than NNP
• NI will be smaller than NNP
• NI and NNP will be equal

6. The aggregate saving of a country in a given period consists of

• The sum of personal savings and government saving
• The sum of personal savings,
• business saving 
• government saving Search

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