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## Tamilnadu Samacheer Kalvi 10th Social Science Solutions Economics Chapter 1 Gross Domestic Product and its Growth: an Introduction

### Samacheer Kalvi 10th Social Science Gross Domestic Product and its Growth: an Introduction Text Book Back Questions and Answers

Question 1.
GNP equals:
(c) GDP plus net factor income from abroad
(d) NNP plus net property income or abroad
(c) GDP plus net factor income from abroad

Question 2.
National Income is a measure of ……………
(a) Total value of money
(b) Total value of producer goods
(c) Total value of consumption goods
(d) Total value of goods and services
(d) Total value of goods and services

Question 3.
Primary sector consist of:
(a) Agriculture
(b) Automobiles
(d) Banking
(a) Agriculture

Question 4.
……………… approach is the value added by each intermediate good is summed to estimate the value of the final good.
(a) Expenditure approach
(c) income approach
(d) National Income

Question 5.
Which one sector is highest employment in the GDP?
(a) Agricultural sector
(b) Industrial sector
(c) Service sector
(d) None of the above
(a) Agricultural sector

Question 6.
Gross value added at current prices for services sector is estimated at …………… lakh crore in 2018-19.
(a) 91.06
(b) 92.26
(c) 80.07
(d) 98.29
(b) 92.26

Question 7.
India is ……………. largest producer in agricultural product.
(a) 1st
(b) 3rd
(c) 4th
(d) 2nd
(d) 2nd

Question 8.
India’s life expectancy at birth is ………….. years.
(a) 65
(b) 60
(c) 70
(d) 55
(a) 65

Question 9.
Which one is a trade policy?
(a) irrigation policy
(b) import and export policy
(c) land-reform policy
(d) wage policy
(b) import and export policy

Question 10.
Indian economy is ……………
(a) Developing Economy
(b) Emerging Economy
(c) Dual Economy
(d) All the above
(d) All the above

II. Fill in the blanks

1. ………………… sector is largest sector in India.
2. GDP is the indicator of ………………… economy.
3. Secondary sector otherwise called as …………………
4. ………………… sector is the growth engine of Indian economy.
5. India is ………………… largest economy of the world.
6. India is ………………… fastest growing nation of the world.
7. ………………… policy envisages rapid industrialization with modernization for attaining rapid economic growth of GDP.

1. Service
2. economic health
3. Industrial sector
4. Service
5. 6th
6. fifth
7. Industrial

III. Choose the correct statement

Question 1.
The rate of saving is low in India for the following reason
(i) Low per capita income.
(ii) Poor performance and less contribution of public sector.
(iii) Poor contribution of household sector.
(iv) Savings potential of the rural sector not tapped fully.
(a) (i), (ii), (iv) are correct
(b) (i), (ii) and (iii) are correct
(c) (i), (ii), (iii) and (iv) are correct
(d) (i), (iii) and (iv) are correct
(c) (i), (ii), (iii) and (iv) are correct

IV. Match the following

A. (iii)
B. (iv)
C. (v)
D. (i)
E. (ii)

Question 1.
Define National income
National Income is a measure of the total value of goods and services produced by an economy over a period of time, normally a year. National Income is also known as Gross National Product or GNP or National Dividend.

Question 2.
What is meant by Gross Domestic product?
The Gross Domestic product is the market value of all the goods and services produced in the country during a time period.

Question 3.
Write the importance of Gross domestic product.
The GDP is one of primary indicators used to measure the health of a country’s economy. It represents the total dollar value of all goods and services produced over a specific time period, often referred to as the size of the economy.

Question 4.
What is Per-Capita Income?
Per-Capita Income is an indicator to show the living standard of people in a country. It is obtained by dividing the National Income by the population of a country. It is also called as output per person of an economy.

Question 5.
Define the value added approach with example.
In the value added approach, the value added by each intermediate good is summed to estimate the value of the final goods. Take example of a cup of tea which is a final good. The goods used to produce it are – tea powder, milk and sugar. These things (goods) are ‘intermediate goods’ since they form a part of the final good, i.e., the cup of tea. Each intermediate good the tea powder, milk and sugar, adds value to the final output, the cup of tea.

Question 6.
Name the sectors contribute to the GDP with examples.
The three sectors that contribute to the GDP are primary sector (or) Agricultural Sector, Secondary Sector (or) Industrial Sector, Tertiary Sector (or) Service Sector. Eg: Agricultural based allied activities. Farm, fishing

1. Mining and Foresty – Primary sector.
2. Major Industries and small scale Industries – Industrial sector.
3. Transport and Communication, Post and Telegraph, Banking, Education, Entertainment, Health care and Information Technology.

Question 7.
Write the sector wise Indian GDP composition in 2017.

Question 8.
What are the factors supporting to develop the Indian economy?
Factors supporting to develop the Indian economy :

• A fast growing population of working age.
• India has a strong legal system and many English language speakers
• Wage costs are low here.
• India’s economy has successfully developed highly advanced and attractive clusters of business in the technology space.

Question 9.
Write the name of economic policies in India.
Agricultural Policy, Industrial Policy, New Economic Policy, Domestic Trade Policy, International Trade Policy, Employment Policy, Currency and Banking Policy, Fiscal and Monetary policy, Wage Policy, Population policy.

Question 10.
Write a short note:
1) Gross National Happiness (GNH)
2) Human Development Index (HDI)
1) Gross National Happiness or GNH is a global indicator of progress, which measures both sustainable economy and social developments, while protecting the environment and culture:

2) The Human Development Index or HDI is a statistic composite index of life expectancy, education and per capita income indicators, which are used to rank countries into four tiers of human development. A country scores a higher HDI when the lifespan is higher, the education level is higher and the gross national income or GNI per capital is higher.

Question 1.
Briefly explain various terms associated with measuring of National Income.
(i) Gross National Product (GNP): It is the total value of goods and services produced and income received by the domestic residents of a country. It includes profit earned from capital invested abroad.
GNP = C + I + G + (X – M) + NFIA

(ii) Gross Domestic Product (GDP): It is the value of output of goods and service produced by the factors of production within the Geographical boundaries of a country.
GDP = GNP – NFIA

(iii) Net National Product (NNP): It is arrived by deducting Depreciation value from the Gross National Product.
NNP = GNP – Depreciation

(iv) Net Domestic Product ( NDP): It is arrived by deducting the value of depreciation from the Gross Domestic Product.
NDP = GDP – Depreciation

(v) Per-Capita Income: It is obtained by dividing the National Income by the population of a country.
PCI = N.I / population
In the above context,
C – Consumption expenditure
I – Investment expenditure
G – Government expenditure
NFIA – Net Factor Income earned from Abroad
Depreciation – Wear and Tear expenses

(vi) Personal Income: It is the total money income received by all the individual of a country from all possible sources before direct taxes.
PI = NI Corporate Income Taxes – Undistributed Corpo – rate profit – social security Contribution + Transfer payment

(vii) Disposable Income (DI): It means the actual income which can be spent on consumption by the people of the country.
DI = PI – Direct taxes

Question 2.
What are the methods of calculating Gross Domestic Product?
Methods of calculating Gross Domestic Product or GDP:

1. Expenditure Approach – In this method, the GDP is measured by adding the expenditure on all the final goods and services produced in the country during a specified period.
2. Income Approach – This method looks at GDP from the perspective of the earnings of the men and women who are involved in producing the goods and services.
3. Value-added Approach – In the value – added approach the value added by each intermediate good is summed to estimate the value of the fiscal good. The sum of the value added by all the intermediate goods used in productions gives us the total value of the final goods produced in the economy.

Question 3.
Write about the composition of GDP in India.
The composition of GDP in India include three sectors which are listed as
(i) Agricultural Sector
(ii) Industrial Sector
(iii) Service Sector.

(i) Agricultural Sector: It is also known as primary sector. Agricultural activities, Agricultural based allied activities, cattle farm, fishing, mining, forestry, mining are all included in this sector. Their total production is the pirimary sector contribution to India’s GDP.

(ii) Industrial Sector: It is also known as secondary sector. Production of goods using raw materials in the form of either Small Scale Industries, or Large Scale Industries like Iron and steel, Automobiles etc., are included in this sector. Their total production is the secondary sector contribution to India’s GDP.

(iii) Service Sector: It is also known as Tertiary sector. It includes Government, transport and communications, Scientific Research, Post and telegraph, trade, Banking, Education, Entertainment, Health care and Information Technology’ in this sector. Their total production is the service sector contribution to India’s GDP.

Sector-wise contribution of GDP (2018 – 19)
Agricultural Sector – 14.39 %
Industrial Sector – 31.46%
Sen/ice Sector – 54.15%

Question 4.
Write the differences between the growth and the development.

Question 5.
Explain the Developmental path based on GDP and employment.
Developmental path based on GDP and employment

1. In the development path of India, at first undertook the policy of closed trade. It means that trade and interaction with the outside world remained limited.
2. In 1991, India finally decided to open its borders to free trade and liberalised its economy by allowing foreign companied to enter the Indian economy.
3. A thrust was given to employment generation under the Five Year Plans. Rural development was also given importance in India.
4. The public sector was given significant importance. Private companies and industries were subject to strict regulations and standards. It was believed that the Government was the sole protector of the people and would work towards social welfare.
5. India has sustained rapid growth of GDP for most of the last two decades leading to rising per capita income and a reduction in absolute poverty. Per capital incomes have doubled in 12 years.

Question 6.
Explain the following policies.
Agricultural Policy: It means a set of decisions and actions taken by the government relating to domestic agriculture and imports of agricultural products.

The policy mainly focus on the following areas:

(b) Economic Stability
(c) Natural Resources
(d) Environmental Sustainability
(e) Research and Development
(f) Market for domestic agricultural commodities

In general, the agricultural policy includes Price policy, Land Reform policy, Green Revolution, Irrigation policy, Food policy, Labour policy and co operative policy.

Industrial policy: It means a set of decisions taken by the government relating to industrial sector, domestic production, trade, self-sufficiency and modernisation.

The policy mainly focus on the following areas:

1. Employment generation
2. Utilisation of Natural resources
3. Boosting the other sector development
4. Research and Development
5. Modernisation
6. Environmental protection
8. Development of small scale industries.

In general, the Industrial policy include Textile Industry policy, Sugar industry policy, Price policy, Small scale industries policy, Industrial Labour policy.

New Economic Policy: The New Economic Policy was introduced in 1991 which includes LPG. LPG refers to Liberalisation, Privatisation and Globalisation. Therefore the policy is called LPG model.

The main objective of this model was to make the economy of India, the fastest developing economy of the world to become equal to the biggest economies of the world. Definitely, this model had influenced India’s Economic growth and development.

VII. Activity and Project

Question 1.
Students are collect the Gross Domestic Product datas of Tamilnadu and compare the other state of Karnataka and Kerala’s GDP.
Tamil Nadu, Karnataka, Kerala GDP are called SGDP- State Gross Domestic Product. This comparison help us to understand, the performance of each state and comparatively which state has performed better. Given here, is a sample of the activity and students should elaborate it and make it as perfect project.

[For refer Table – 12 CSO – Central Statistical Organisation, New Delhi ]

Question 2.
Students are collect the details of Employment growth of Tamilnadu.

1. The Employment Growth of Tamil Nadu refers to the rate of growth of work force or labour force of the state. The students should understand that this can be compared between the two Census (2001 and 2011).
2. The state of TamilNadu total population grew from 62.41 million in 2001 to 72.15 million in 2011.
3. Between these two Censuses, the total number of workers in the slate increased by 1.18% that is from 27.88 million to 32.88 million.
4. Among the districts work participation is the lowest at 36.3% in Kanyakumari despite the fact it has high literacy level. It is nigh in Erode with 53.1% as per 2011 Census.
5. Taking the above given sample information, students should, do activity considering the labour force participation men. women ratio scpaiaiciy.

### Samacheer Kalvi 10th Social Science Gross Domestic Product and its Growth: an Introduction Additional Important Questions and Answers

Question 1.
‘Your mother is cooking’- In this statement, cooking is …………………
(a) Good
(b) Service
(c) Both (a) and (b)
(d) None
(b) Service

Question 2.
‘Economic growth is one aspect of economic development’. Who said it?
(a) Amarthya Sen
(b) Manmohan Singh
(c) Mehabub ul Haq
(d) Ramachandra Guha
(a) Amarthya Sen

Question 3.
Goods and Service has a market …………………
(a) value
(b) price
(c) Both (a) and (b)
(d) to fix a price
(c) Both (a) and (b)

Question 4.
Which one of the following is not an example of tertiary sector?
(a) Communication
(b) Banking
(c) Transport
(d) Forestry
(d) Forestry

Question 5.
The intermediate Goods value are indirectly included in the measurement of …………………
(a) GDP
(b) GNP
(c) SGDP
(d) NDP
(a) GDP

Question 6.
GDP of a country can be calculated by ……………..
(a) 2 Approach
(b) 3 Approach
(c) 4 Approach
(b) 3 Approach

Question 7.
The ………………… value is derived from the price at which the Goods and Services are sold in the market.
(a) currency
(b) frequency
(c) Nation’s
(a) currency

Question 8.
National Income is otherwise called as ……………..
(a) Real Income
(b) Money Income
(c) Gross National Product
(c) Gross National Product

Question 9.
Imagine your father knows book binding technique and after you get new books for this year, he bounded and gave you. Whether binding charges are included on the GDP?
(a) Included
(b) Partially Included
(c) Not included
(d) Both (a) and (b)
(c) Not included

Question 10.
The method by which we arrive at National Income in India is …………..
(a) Product method
(b) Expenditure method
(c) Product and Income method
(c) Product and Income method

Question 11.
If the ………………… goods are included in the GDP, it will result in Double counting.
(a) Final
(b) Intermediate
(c) Import
(d) Export
(b) Intermediate

Question 12.
Commonly, National Income is called as …………………
(a) GNP
(b) GDP
(c) NNP
(d) PCI
(a) GNP

Question 13.
………………… is also called as National Dividend.
(a) GNP
(b) GDP
(c) NNP
(d) NFIA
(a) GNP

Question 14.
GNP ………………… net factor from abroad.
(a) Excludes
(b) includes
(c) Sums up
(d) (a) and (c)
(d) (a) and (c)

Question 15.
GDP ………………… net factor income from abroad.
(a) Excludes
(b) includes
(c) Sums up
(d) (a) and (c)
(a) Excludes

Question 16.
GNP minus depreciation gives …………………
(a) NDP
(b) NNP
(c) GDP
(d) NFIA
(b) NNP

Question 17.
NDP is the value of depreciation excluded from …………………
(a) GDP
(b) NNP
(c) NFIA
(d) (X-M)
(a) GDP

Question 18.
………………… denotes the standard of living of the people.
(a) NNP
(b) NDP
(c) PCI
(d) NFIA
(c) PCI

Question 19.
………………… represents all sources of income excluding direct taxes.
(a) GNP
(b) PCI
(c) PI
(d) DI
(c) PI

Question 20.
Personal income minus direct taxes will give …………………
(a) DI
(b) DPI
(c) PI
(d) both (a) and (b)
(d) both (a) and (b)

Question 21.
The quarterly GDP estimates for the ………………… quarter includes months January, February and March.
(a) first
(b) second
(c) third
(d) fourth
(d) fourth

Question 22.
The quarterly GDP estimates of the month July, August and September includes ………………… quarter.
(a) first
(b) second
(c) third
(d) fourth
(b) second

Question 23.
The first quarter of the GDP estimates includes the months …………………
(a) Jan, Feb, March
(b) July, Aug, Sep
(c) April, May, June
(d) Oct, Nov, Dec.
(c) April, May, June

Question 24.
October, November, December, months are included in ………………… quarter estimates of GDP.
(a) first
(b) second
(c) third
(d) fourth
(c) third

Question 25.
The modern concept of GDP was first developed by Simon Kuznets in the year …………………
(a) 1930
(b) 1932
(c) 1933
(d) 1934
(d) 1934

Question 26.
There are ………………… methods to calculate GDP.
(a) 4
(b) 3
(c) 6
(d) 1
(b) 3

Question 27.
The prices paid to the factors of production are included in the ………………… approach
(a) Income
(b) Expenditure
(d) None
(a) Income

Question 28.
………………… helps in the estimation of purchasing power.
(a) GNP
(b) GDP
(c) NDP
(d) NNP
(b) GDP

Question 29.
Adding up all the expenditures incurred in a country during a specific period of time is called ………………… method.
(a) Income
(b) Expenditure
(d) None
(b) Expenditure

Question 30.
GDP measures only the quantity but not …………………
(a) quality
(b) price
(c) market value
(a) quality

Question 31.
There are ………………… sectors in an economy.
(a) one
(b) two
(c) three
(d) four
(c) three

Question 32.
India is the ………………… largest producer of agricultural products.
(a) first
(b) second
(c) third
(d) fourth
(b) second

Question 33.
Amartya Sen is an ………………… Economist.
(a) American
(b) Australian
(c) Indian
(d) Pakistani
(c) Indian

Question 34.
The key parameters of economic growth of an economy are its GDP and ………………… which helps in measuring the actual size of the economy.
(a) GNP
(b) NFIA
(c) Depreciation
(d) PCI
(a) GNP

Question 35.
The GDP of India is ………………… million United States dollars.
(a) 19.3
(b) 2.8
(c) 3.6
(d) 7.8
(b) 2.8

Question 36.
The GDP of United States is ………………… million.
(a) 19.3
(b) 2.8
(c) 3.6
(d) 7.9
(a) 19.3

Question 37.
India is ranked ………………… in Globe as regard to GDP.
(a) fourth
(b) fifth
(c) sixth
(d) third
(c) sixth

Question 38.
United States is ranked ………………… in Globe as regard to GDP.
(a) third
(b) fourth
(c) second
(d) first
(d) first

Question 39.
Economic Growth is ………………… in nature.
(a) quantitative
(b) qualitative
(c) both (a) and (b)
(d) peculiar
(a) quantitative

Question 40.
Economic ………………… is a broader concept.
(a) Development
(b) Growth
(c) Project
(d) None
(a) Development

Question 41.
………………… helps to measure the real development of an economy.
(a) GDP
(b) HDI
(c) GNHI
(d) NNP
(b) HDI

Question 42.
The concept of Economic development is mainly applicable to ………………… economies.
(a) Developed
(b) Developing
(c) Under developed
(d) Less developed
(b) Developing

Question 43.
The concept of Economic Growth is mainly applicable to ………………… economies.
(a) Developed
(b) Developing
(c) Less developed
(d) Under developed
(a) Developed

Question 44.
The concept of Human Development Index was put forward by …………………
(a) Amartya Sen
(b) Mahbub-ul-Haq
(c) Wangehuck
(d) Simon Kuznets
(b) Mahbub-ul-Haq

Question 45.
The concept of HDI was first introduced at the …………………
(a) United Nations
(b) United Stated
(c) United Kingdom
(d) UAE
(a) United Nations

Question 46.
The concept of HDI was introduced in the year
(a) 1960
(b) 1970
(c) 1990
(d) 1980
(c) 1990

Question 47.
India lies in ………………… Human Development Index Category.
(a) High
(b) Low
(c) Medium
(d) Very Low
(c) Medium

Question 48.
India’s HDI value for 2017 is …………………
(a) 0.001
(b) 0.540
(c) 0.640
(d) 0.340
(c) 0.640

Question 49.
When a country’s HDI increases, it removes the country from …………………
(a) Development
(b) Poverty
(d) Stagnation
(b) Poverty

Question 50.
GNHI is a philosophy that guides the government of …………………
(a) America
(b) Nepal
(c) Bhutan
(d) India
(c) Bhutan

Question 51.
Co-operative policy is a part of ………………… policy.
(a) Agriculture
(b) Industry
(c) NEP
(d) Wage
(a) Agriculture

Question 52.
The city ………………… has emerged as a hub for global software business today.
(a) Chennai
(b) Mumbai
(c) Bangalore
(d) Calcutta
(c) Bangalore

Question 53.
The structural reforms brought in India recently are …………………
(a) GST
(b) Demonetisation
(c) Both (a) and (b)
(d) None
(c) Both (a) and (b)

Question 54.
The measure of the value of goods and services produced in an area, industry (or) sector of the economy is called …………………
(a) GDP
(b) GNP
(c) GVA
(d) NDP
(c) GVA

Question 55.
According to IMF, India is ………………… fastest growing nation of the World.
(a) 3rd
(b) 2nd
(c) 4th
(d) 5th
(d) 5th

II. Fill in the blanks

1. In order to know the performance of India, one should know the ………………. of our country.
2. Goods are difference from ……………….
3. Services are ……………….
4. The GDP is the ………………. value of final goods and services produced in the country.
5. The price at which the goods are sold in the market is called ……………….
6. The GDP is measured in terms of ………………. value of our country.
7. “The final goods and services will not be a part of other goods and Services”, said by ……………….
8. The goods that are used in the production of other goods are called as ………………. goods.
9. If the intermediate goods are included in the GDP, then it will result in ……………….
10. Commonly National Income is called as ……………….
11. National Income (or) GNP is also called as ……………….
12. Profits earned from abroad is ………………. with GDP to get GNP.
13. If the total value of goods and services are calculated within the geographical boundary of a country it is called
14. The process of loosing the value of anything is called as ……………….
15. The Income of individuals from all sources before payment of taxes is called as ……………….
16. Personal income minus Direct taxes will give ……………….
17. ………………. used the term Per Capita Income for the first time in 1867-68.
18. ………………. is the name of the book written by Dadabhai Navroji.
19. GDP minus depreciation gives ……………….
20. GNP minus depreciation gives ……………….
21. ………………. is the indicator of standard of living of people in a country.
22. The formulae to calculate PCI is ……………….
23. The cost of saree brought by your brother to your mother ………………. from China will be from India’s GDP.
24. My uncle sends money to his family in India from Dubai. It is included in India’s ……………….
25. GDP is measured both annually and ……………….
26. There are ………………. quarters with which GDP is measured.
27. January, February, March refers to the ………………. quarter of the measurement of GDP.
28. April to June measured as the ………………. quarter in measurement of GDP.
29. The path of development of India in recent years is moving from agricultural sector to ………………. sector.
30. Wage costs are ………………. in India.
31. GNHf is a philosophy instituted as the goal of government of ……………….
32. India is now experiencing a period of ……………….
33. As per HDI, India is in the ………………. human development category.
34. In ………………. India, opened up to free trade policy.
35. Economic development is a ………………. preocess.
36. In India, ………………. city is considered as a hub for global software businesses.
37. The new model of economic reforms put forward in 1991 by India is called as ………………. model.
38. According to IMF, GDP growth rate of India in 2018 is projected at ……………….
39. According to World economic outlook, India is ………………. fastest growing nation of the World.
40. According to IMF World Economic Outlook ………………. is in the rank as a fastest growing nation of the world.

1. GDP
2. Services
3. Intangible
4. Market
5. Market value
6. Rupee
7. Tyler Cowen and Alex Tabarrok
8. Intermediate
9. Double counting
10. Gross National Product
11. National Dividend
12. Included
13. GDP
14. Depreciation
15. Personal income
16. Disposable income
18. Poverty and Unemployment
19. NDP
20. NNP
21. Per Capita Income
22. N.I. / population
23. Excluded
24. GNP
25. Quarterly
26. Four
27. Fourth
28. First
29. Service
30. Low
31. Bhutan
32. Demographic transition
33. Medium
34. 1991
35. Continuous
36. Bangalore
37. LPG
38. 7.3%
39. Fifth

III. Choose the correct statement

Question 1.
(i) Only the final goods are included in the GDP.
(ii) If the value of the Intermediate goods are included,, it will result in double counting,
(iii) The rupee values are desired from the prices at which the goods and services are sold in the market.
(iv) There is no sensible way to add the quantities of goods produced with those of the services produced.
(a) (i), (ii), (iv) are correct
(b) (i), (ii), (iii) are correct
(c) (i), (ii), (iii) and (iv) are correct
(d) (i), (iii) and (iv) are correct
(c) (i), (ii), (iii) and (iv) are correct

Question 2.
(i) Personal income minus direct taxes gives the disposable income.
(ii) GDP of India includes the market value of all the goods and services produced in the global level.
(iii) Disposable Income minus Transfer payments plus subsidies gives personal income.
(iv) The Quantum of wear and tear expenses are called Depreciation.
(a) (i), (ii), (iv) are correct
(b) (i), (ii), (iii) are correct
(c) (i), (ii), (iii) and (iv) are correct
(d) (i), (iv) are correct
(d) (i), (iv) are correct

Question 3.
(i) income methods sums up all forms of income earned by individuals who are involved in the production of goods and services.
(ii) There are several methods to calculate National income or GDP.
(iii) The Modern concept of GDP was first developed by Simon Kuznets in 1934.
(iv) The annual GDP of financial year 2017-18 will include only the goods and services produced during that financial year.
(a) (i), (ii), (iv) are correct
(b) (i), (ii), (iii) are correct
(c) (i), (ii), (iii) and (iv) are correct
(d) (i), (iii), (iv) are correct
(d) (i), (iii), (iv) are correct

Question 4.
(i) GDP measures only quantity but not quality.
(ii) CSO conducts annual survey based on Indexes like Index on Industrial Production (llP) and Consumer Price Index (CPl).
(iii) High level of Per Capita real GDP will lead to low level of pollution and low suicidal rate.
(iv) India is the largest producer of agricultural products in the world.
(a) (i), (ii), (iv) are correct
(b) (i), (ii), (iii) are correct
(c) (i), (ii) are correct
(d) (i), (iii), (iv) are correct
(c) (i), (ii) are correct

Question 5.
(i) Economic Growth is one aspect of Economic Development-Said by Economist Amartya Sen.
(ii) HDl is apt tool to measure the real development in an economy.
(iii) United States of America ranks top in the globe in terms of its GDP.
(iv) Economic development is quantitative in nature.
(a) (i), (ii), (iv) are correct
(b) (i), (ii), (iii) are correct
(c) (i), (ii), (iii) and (iv) are correct
(d) (i), (iii), (iv) are correct
(b) (i), (ii), (iii) are correct

Question 6.
(i) Poverty alleviation came as a corollary of rural development.
(ii) In 2011, The UN Genera! Assembly passed Resolution Happiness towards a Holistic approach to development.
(iii) There are nine domains in GNHI
(iv) There are two structural reforms recently brought in India- demonetisation and Goods and Services Tax.
(a) (i), (ii), (iv) are correct
(b) (i), (ii), (iii) are correct
(c) (i), (ii), (iii) and (iv) are correct
(d) (i), (iii), (iv) are correct
(c) (i), (ii), (iii) and (iv) are correct

IV. Assertion and Reason

Question 1.
Assertion (A): Economic Development is a broader concept.
Reason (R): It is long-term in nature and includes variables like removal of poverty, Rise in life expectancy rate etc.
(a) A is correct and R is the relevant explanation to A.
(b) A is correct and R is not the relevant explanation to A
(c) A is wrong, R is correct.
(d) A is wrong and R is wrong.
(a) A is correct and R is the relevant explanation to A.

Question 2.
Assertion (A): There are two major structural reforms brought in India recently. They are demonetization and Goods and Services Tax.
Reason (R): India economy is the 5th fastest growing nation of the World.
(a) A is correct, and R is the relevant explanation to A.
(b) A is correct and R is not the relevant explanation to A
(c) A is wrong, R is correct.
(d) A and R is wrong.
(b) A is correct and R is not the relevant explanation to A

Question 3.
Assertion (A): Intermediate goods are not counted in calculating the GDP.
Reason (R): Their value is already included in the final goods.
(a) A is correct and R is the relevant explanation to A.
(b) A is correct and R is not the relevant explanation to A
(c) A is wrong, R is correct
(d) A and R is wrong.
(a) A is correct and R is the relevant explanation to A.

Question 4.
Assertion (A): Economic Growth is a quantitative measure.
Reason (R): It considers the increase in the output produced in an economy in a particular period of time.
(a) A is correct and R is the relevant explanation to A.
(b) A is correct and R is not the relevant explanation to A
(c) A is wrong, R is correct
(d) A and R is wrong.
(a) A is correct and R is the relevant explanation to A.

V. Match the following

Question 1.
Match the Column I with Column II.

A. (iv)
B. (i)
C. (v)
D. (ii)
E. (iii)

Question 2.
Match the Column I with Column II.

A. (v)
B. (iii)
C. (vi)
D. (ii)
E. (iv)

Question 1.
Gross Value Added or GVA is the measure of the value of goods and services produced in an area, industry of sector of an economy. In national accounts GVA is output minus intermediate consumption; it is a balancing item of the national accounts’ production account.

Question 2.
Distinguish between goods and services.

 Goods Services Goods are tangible Services are intangible Goods can be separated from its owner Services cannot be separated from its owner Eg: Table, chair, Apple etc., Service of a teacher, Lawyer, cook in a hotel etc., Goods are products Services are activities

Question 3.
In what two ways is the GDP measured in India?
In India GDP is measured both annualy and quarterly. The annual GDP is for a financial year which is from April 1 of one year, for example 2017 to March 31 of the next year, for example 2018.
This is written as 2017-18.
The quarterly GDP estimates are for each of the four quarters into which India’s financial year is divided.
First quarter, denoted Q1 : April, May and June .
Second Quarter – Q2 : July, August and September
Third Quarter – Q3 : October, November and December
Fourth Quarter – Q4 : January, February and March

Question 4.
What is meant by Intermediate good? Give example.
The goods which will be used for the production of other goods are called Intermediate goods. Eg: Sugar.

Question 5.
How do you arrive at NNP?
We arrive at the NNP by deducting the value of depreciation from Gross National Products. NNP = GNP (-) Depreciation.

Question 6.
What is meant by GVA?
Gross Value Added is called as GVA. It is the measure of the value of goods and services produced in an area (or) sector of an economy.
GVA = GDP + Subsidies – Taxes.

Question 7.
Give examples for tertiary sector.
Tertiary sector include Trade, Hotel industry, Transport, Storage, Communication, Finance, Insurance, Real estate, Social services, Postal and Telegraph, Banking, Education, Entertainment, Health care and Information Technology, etc.

Question 8.
What is the financial year of India?
The financial year is the year of the calculation of GDP. In India it starts from April 1st and ends on March 31st.

Question 9.
What is Depreciation?
Decline in the value of capital assets (machineries) due to tear and wear is measured as depreciation.

Question 10.
Write few parameters to measure economic growth?
Human Resources, Natural Resources, Advancement in technology, Capital formation, Political and social economic factors are few parameters to measure economic growth.

Question 11.
What is Disposable Income (DI)?
Disposable Income means actual income which can be spent on consumption by individuals and families, thus, it can be expressed as DPI = PI – Direct Taxes.

Question 1.
Explain the limitations of GDP.
(i) Non – Marketed items are left out of GDP: GDP includes only the goods and services that are sold in the market, Non-Marketed items are not included. Eg: Services provided by parents to their children, clean air has no market value (or) price. Hence it is left out of GDP.

(ii) GDP measures only quantity not quality: At times, we can see some products which are available at large quantities in the product, at a very low price. Only the quantity sold and its price is measured in GDP. Quality of the product is not taken care of.

(iii) Income Distribution: The GDP of a country may be growing rapidly. But income may not be distributed equally. This brings a lot of unequal distribution of income and wealth. GDP actually do not suggest on income distribution.

(iv) Way of life of the people: A high level of Per-Capita real GDP, may lead to a very low health condition of the people, an undemocratic political system, High pollution, High suicidal rate.

Question 2.
How are three sectors of an economy are interdependent?