“Real Gross Domestic Product (GDP) is a better indicator of economic growth of a nation as compared to the Nominal Gross Domestic Product (GDP).”
Do you agree with the given statement? Justify your answer with a valid hypothetical numerical example.
Do you agree with the given statement? Justify your answer with a valid hypothetical numerical example.
Show Hint
Solution and Explanation
Yes, Real GDP is a better indicator as it accounts for inflation.
- Nominal GDP: Measures output at current prices.
- Real GDP: Adjusts for inflation, reflecting the true value of goods and services.
- Example: - Year 1: Nominal GDP = ₹1000 crore, Price Index = 100. - Year 2: Nominal GDP = ₹1200 crore, Price Index = 120. - Real GDP (Year 2) = \(\frac{1200}{120} \times 100 = ₹1000 \, \text{crore}\). Despite an increase in nominal GDP, real GDP remains constant, indicating no actual growth in production.
Top Questions on Production Theory
- The following are the reasons for firms to hold stock of inventories except:
- CUET (PG) - 2025
- Economics
- Production Theory
- Match List-I with List-II \[\begin{array}{|c|c|} \hline \textbf{Types of Production Functions} & \textbf{Their Functional Forms} \\ \hline \text{(A) Translog Production Function} & \text{(I) \( q = \prod_{i=1}^{n} x_i^{a_i} \)} \\ \hline \text{(B) Generalised Leontief Production Function} & \text{(II) \( q = \sum_{i=1}^{n} a_i x_i^{\rho}, \ \rho \leq 1 \)} \\ \hline \text{(C) Cobb Douglas Production Function} & \text{(III) \( q = \sum_{i=1}^{n} a_{ij} x_i x_j \), where \( a_{ij} = a_{ji} \)} \\ \hline \text{(D) Constant Elasticity of Substitution Production Function} & \text{(IV) \( q = a_0 + \sum_{i=1}^{n} a_i \ln x_i + 0.5 \sum_{i=1}^n \ln x_i \)} \\ \hline \end{array}\] Choose the correct answer from the options given below:
- CUET (PG) - 2025
- Economics
- Production Theory
- Assuming that the production function is homogeneous of degree one and Euler's equation holds, if \( MP_L \) (marginal product of labour) is greater than \( AP_L \) (average product of labour), then:
- CUET (PG) - 2025
- Economics
- Production Theory
- A die is rigged in a way that each odd number is twice as likely to occur as each even number. When a die is rolled, what is the probability that the outcome is greater than 3?
- CUET (PG) - 2024
- Economics
- Production Theory
- If a Production Function is given as Q(x,y) = Axay, where (a + b) = 2, the function is said to display:
- CUET (PG) - 2024
- Economics
- Production Theory
Questions Asked in CBSE CLASS XII exam
- Find the general solution of the differential equation \[ y\log y\,\frac{dx}{dy}+x=\frac{2}{y}. \]
- CBSE CLASS XII - 2026
- Differential Equations
- A square loop of side 0.50 m is placed in a uniform magnetic field of 0.4 T perpendicular to the plane of the loop. The loop is rotated through an angle of 60° in 0.2 s. The value of emf induced in the loop will be:
- CBSE CLASS XII - 2026
- Electromagnetic induction
A racing track is built around an elliptical ground whose equation is given by \[ 9x^2 + 16y^2 = 144 \] The width of the track is \(3\) m as shown. Based on the given information answer the following:
(i) Express \(y\) as a function of \(x\) from the given equation of ellipse.
(ii) Integrate the function obtained in (i) with respect to \(x\).
(iii)(a) Find the area of the region enclosed within the elliptical ground excluding the track using integration.
OR
(iii)(b) Write the coordinates of the points \(P\) and \(Q\) where the outer edge of the track cuts \(x\)-axis and \(y\)-axis in first quadrant and find the area of triangle formed by points \(P,O,Q\).
- CBSE CLASS XII - 2026
- Integration
- Consider a cylindrical conductor of length \( l \) and area of cross-section \( A \). Current \( I \) is maintained in the conductor and electrons drift with velocity \( \vec{v}_d \, (|\vec{v}_d| = \frac{eE}{m} \tau) \), where symbols have their usual meanings. Show that the conductivity of the material of the conductor is given by \[ \sigma = \frac{n e^2 \tau}{m}. \]
- CBSE CLASS XII - 2026
- Current Density
- The painting Hazrat Nizamuddin Auliya and Amir Khusro belongs to which sub-school of Deccan Miniature?
- CBSE CLASS XII - 2026
- Indian Miniature Paintings and Museums