Match the national income accounting terms and development indicators in List-I with their… — State PSC Exam

Match the national income accounting terms and development indicators in List-I with their correct conceptual definitions in List-II:

Gross Value Added ( $GVA$ ) at Basic PricesGross Value Added at factor cost plus net production taxes (production taxes less production subsidies).
Net National Product ( $NNP$ ) at Factor CostThe total factor income generated by normal residents of a nation, equivalent to National Income.
Global Multidimensional Poverty Index ( $MPI$ )An index capturing acute micro-level deprivations across health, education, and living standards.
Planetary pressures-adjusted Human Development Index ( $PHDI$ )An indicator adjusting HDI to reflect environmental impact based on per capita $CO_2$ emissions and material footprint.

Answer

Gross Value Added at Basic Prices matches with Gross Value Added at factor cost plus net production taxes. Net National Product at Factor Cost matches with the total factor income generated by normal residents of a nation (National Income). Global Multidimensional Poverty Index matches with an index capturing acute micro-level deprivations across health, education, and living standards. Planetary pressures-adjusted Human Development Index matches with an indicator adjusting HDI to reflect environmental impact based on per capita carbon dioxide emissions and material footprint.

Each aggregate and indicator correctly pairs with its exact mathematical or conceptual definition: Gross Value Added at basic prices equals GVA at factor cost plus net production taxes; Net National Product at factor cost equals National Income; the Global Multidimensional Poverty Index measures multi-dimensional deprivations across health, education, and living standard dimensions; and the Planetary pressures-adjusted Human Development Index factors in per capita carbon dioxide emissions and material footprint.

Step-by-Step Solution

Analyze Gross Value Added at Basic Prices

Basic price includes production taxes (e.g., land revenue, stamp duty) minus production subsidies (e.g., railway subsidies), but excludes product taxes/subsidies.

Differentiates GVA at basic prices from GVA at factor cost and GDP at market prices.

Evaluate Net National Product at Factor Cost

NNP at factor cost represents the total income earned by factors of production (rent, wages, interest, profit) owned by normal residents.

This aggregate is formally defined as National Income.

Identify Multidimensional Poverty Index definition

MPI measures non-monetary deprivations across 10 indicators spanning health, education, and standard of living.

Provides a comprehensive assessment of poverty beyond income levels.

Examine Planetary pressures-adjusted HDI

PHDI scales HDI by multiplying it by an adjustment factor derived from carbon emissions and material footprint per capita.

Reflects human development while accounting for environmental sustainability.

Key Concept

National Income Aggregates and Human Development Metrics

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