UPSC Prelims Marathon 29 April – Economics Discipline & National Income Accounting – 2025

Consider the following statements:
1.Depreciation refers to the sudden destruction of capital goods due to accidents or calamities.
2.Net investment is calculated by subtracting depreciation from gross investment.
3.Capital goods are consumed immediately, like food items and clothing.
Which of the statements given above is/are correct?

In the Product Method of calculating national income, the term ‘Value Added’ refers to:

Consider the following statements regarding the Income Method of calculating GDP:
1.GDP is the sum of the incomes received by all the factors of production in the economy, such as wages, profits, interest, and rents.
2.The income method is different from the expenditure method as it includes intermediate goods in the calculation of GDP.
3.In the income method, the GDP is the sum of wages, profits, interest, and rents, which are the total incomes earned by households.
Which of the statements given above is/are correct?

Consider the following statements:
1.GNP is calculated by adding net factor income from abroad to GDP.
2.NNP is derived by subtracting depreciation from GNP.
3.Personal Disposable Income (PDI) is the income left with households after paying personal taxes and non-tax payments.
Which of the above statements is/are correct?