ECONOMICS (CBSE/UGC NET)

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ECONOMICS

GDP

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
To measure the health of an economy, people look at the symptoms or indicators used to measure the health of an economy. The 3 main indicators include all of the following except;
A
Gross Domestic Product
B
Imflation/ Consumer Price Index
C
Unemployment
D
Average Income Level
Explanation: 

Detailed explanation-1: -Once upon a time the health of the economy could largely be gauged by looking at three indicators of economic well-being: the inflation rate, the unemployment rate, and the growth rate of the gross domestic product.

Detailed explanation-2: -There are three very important economic indicators that aid in measuring a country’s development. They are Gross Domestic Product (GDP), Gross National Product (GNP) and Purchasing Power Parity (PPP).

Detailed explanation-3: -The growth rate of real GDP is often used as an indicator of the general health of the economy. In broad terms, an increase in real GDP is interpreted as a sign that the economy is doing well.

Detailed explanation-4: -An economy provides people with goods and services, and economists measure its performance by studying the gross domestic product (GDP)-the market value of all goods and services produced by the economy in a given year. If GDP goes up, the economy is growing; if it goes down, the economy is contracting.

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