SSC
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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when we include intermediate goods in the estimation of GDP we face the problems like:
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Double accounting
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Unemployment
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Poverty
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Overestimation of GDP
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Explanation:
Detailed explanation-1: -Answer and Explanation: Yes, GDP is underestimating the national output and the total income of a country.
Detailed explanation-2: -Conceptual problems in the use of real GDP as a measure of economic well-being include the facts that it does not include nonmarket production and that it does not properly adjust for “bads” produced in the economy. Per capita real GDP or GNP can be used to compare economic performance in different countries.
Detailed explanation-3: -The exclusion of non-market transactions. The failure to account for or represent the degree of income inequality in society. The failure to indicate whether the nation’s rate of growth is sustainable or not. More items
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