Consider the following statements: 1. The real Gross Domestic Product (GDP) is calculated on a base year. 2. The National Statistical Office (NSO) is responsible for revising the GDP series. 3. If a country's Gross National Product (GNP) is significantly higher than its GDP, it signifies that the country has a large number of foreign-owned companies operating domestically. Which of the statement(s) given above is/are correct? |ForumIAS

Q. Consider the following statements:
1.The real Gross Domestic Product (GDP) is calculated on a base year.
2.The National Statistical Office (NSO) is responsible for revising the GDP series.
3.If a country’s Gross National Product (GNP) is significantly higher than its GDP, it signifies that the country has a large number of foreign-owned companies operating domestically.
Which of the statement(s) given above is/are correct?

[A] 1 only

[B] 3 only

[C] 1 and 2 only

[D] 2 and 3 only

Answer: C

Notes:

Explanation –

Statements 1 and 2 are correct. Real GDP is calculated using base-year prices to adjust for inflation, allowing for a more accurate comparison of economic output over time. In India, the National Statistical Office (NSO), under the Ministry of Statistics and Programme Implementation, is responsible for calculating and revising GDP figures, including updating the base year for GDP calculations.

Statement 3 is incorrect. If a country’s GNP is significantly higher than its GDP, it indicates that the country’s nationals or companies are earning substantial income from abroad. The reverse—GDP being higher than GNP would suggest significant foreign ownership within the country.

Source: The Hindu

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