Question

Match List-I with List-II: \[ \begin{array}{|c|l|c|l|} \hline \textbf{List-I} & & \textbf{List-II} & \\ \hline (A) & \text{Gross Domestic Product at Market Price} & (I) & NDP_{MP} - \text{Net Product Taxes} - \text{Net Production Taxes} \\ \hline (B) & \text{Net Domestic Product at Factor Cost} & (II) & GVA \text{ at basic prices} - \text{Net Production Taxes} \\ \hline (C) & \text{GVA (Gross Value Added) at factor cost} & (III) & C + I + G + (X - M) \\ \hline (D) & \text{Gross National Product at Factor Cost} & (IV) & GNP_{MP} - \text{Net Product Taxes} - \text{Net Production Taxes} \\ \hline \end{array} \]

• (A) – (I), (B) – (II), (C) – (III), (D) – (IV)
• (A) – (III), (B) – (I), (C) – (II), (D) – (IV)
• (A) – (I), (B) – (II), (C) – (IV), (D) – (III)
• (A) – (III), (B) – (IV), (C) – (I), (D) – (II)

Hint:

GDP at MP is always linked with expenditure method. Net values adjust for depreciation; factor cost adjusts for net product & production taxes.

Answer 1

The Correct Option is B

Step 1: Define key economic terms.
- GDP at Market Price (MP): Calculated using the expenditure approach as \( C + I + G + (X – M) \).
- NDP at Factor Cost (FC): Net Domestic Product, adjusted for taxes, derived from \( NDP_{MP} – \text{Net Product Taxes – Net Production Taxes} \).
- GVA at Factor Cost (FC): The value-added measure, calculated as \( GVA \text{ at basic prices – Net Production Taxes} \).
- GNP at Factor Cost (FC): Derived from GNP at market price by adjusting for taxes: \( GNP_{MP} – \text{Net Product Taxes – Net Production Taxes} \).
Step 2: Correspond terms with their definitions from List-II.
- (A) GDP at MP corresponds to (III), which is \( C + I + G + (X – M) \).
- (B) NDP at FC corresponds to (I).
- (C) GVA at FC corresponds to (II).
- (D) GNP at FC corresponds to (IV).
Step 3: Confirm the matching against the provided options.
Option (2) presents the correct pairings.
Final Answer: \[\boxed{(A) – (III), \; (B) – (I), \; (C) – (II), \; (D) – (IV)}\]