Final goods and services produced in a country during a period of time are taken into account under the expenditure method of calculating National Income or Gross Domestic Product. In this method, the final expenditure made by each stakeholder is taken into account Final expenditure is that part of the expenditure that is undertaken not… Continue reading Expenditure Method in calculating GDP
Author: ForumIAS
Factor Price and Market Price
What is Factor Cost and how it is different from Market Price? Factor cost is the total amount which the manufacturer had to invest in production of a good or commodity. It doesn’t include any taxes imposed on the final product. But it includes the subsidies provided to the manufacturer during the production stage Market Price: It… Continue reading Factor Price and Market Price
Nominal GDP and Real GDP and GDP Deflator
What is Nominal GDP and Real GDP ? and What is GDP Deflator? Nominal GDP refers to the current year production of final goods and services valued at current year prices. Real GDP refers to the current year production of goods and service valued at base year prices. Base year prices are constant prices. Currently, the base year for GDP calculation is 2011-12. What is… Continue reading Nominal GDP and Real GDP and GDP Deflator
Difference between Gross Vs Net Terms used in economy
What is the difference between Gross Vs Net Terms used in economy? Production factors such as machines, equipment, tools, factory buildings, tractors etc. depreciate over a period of time during the process of production. It may be the case that after certain time these capital goods needs replacement. The capital used for the this wear… Continue reading Difference between Gross Vs Net Terms used in economy
Private Income
Private income is the total of factor incomes and transfer incomes received from all sources by private sector (private enterprise and households) within and outside the country. The formula for Private Income is Private Income = Factor income from net domestic product accruing to the private sector + National debt interest + Net factor income… Continue reading Private Income
National Disposable Income
National Disposable Income is the sum of the disposable incomes of all resident and institutional units. National Disposable Income gives us an idea of what is the maximum amount of goods and services the domestic economy has at its disposal The formula for National Disposable Income is National Disposable Income = Net National Product at market prices… Continue reading National Disposable Income
Dilli chalo farmer’s protest
Context- Farmers from all over the country are protesting seeking the repeal of the new farm laws. What is Farmers’ Produce Trade and Commerce [FPTC] Act, 2020? Break the monopoly- It allows intra-state and inter-state trade of farmers produce beyond the physical premises of Agricultural Produce and Livestock Market Committee (APMC) markets. State will be now prohibited from levying any market… Continue reading Dilli chalo farmer’s protest
Inequality in education system
Context: Aishwarya Reddy’s death points finger at an education system that turns a blind eye to inequality. Background Recently a young student, Aishwarya Reddy from Lady Shri Ram College, died by suicide. The girl from a poor family took her life due to her inability to buy gadgets required by her to continue her online… Continue reading Inequality in education system
Aspects of vaccine distribution
Context: Aspects of vaccine distribution. Background The World Health Organisation (WHO) declared the COVID-19 a pandemic in march 2020 and the most optimistic prediction for a vaccine to be available was by the middle of 2021. Now, the labs around the world are working faster than anticipated and the first vials of a vaccine are likely… Continue reading Aspects of vaccine distribution
Ayurveda and patient safety
Context: Efficacy of Ayurveda to incorporate surgical techniques. What are the requirements for conducting a successful surgery? Apprenticeship is the key: Surgery in the present era is an interdisciplinary effort. This is one branch of medicine where knowledge can only be acquired through apprenticeship that is, the learner needs to be guided by an expert A well-trained… Continue reading Ayurveda and patient safety
