Arrange the following in ascending order (A) Growth rate of Gross National Income (at constant price) of India in 2015 - 16 (B) Growth rate of Gross National Income (at constant price) of India in 2016 - 17 (C) Growth rate of Gross National Income (at constant price) of India in 2017 - 18 (D) Growth rate of Gross National Income (at constant price) of India in 2018 - 19 (E) Growth rate of Gross National Income (at constant price) of India in 2019 - 20 Choose the correct answer from the options given below:
(E), (D), (C), (A), (B)
Understanding India's GNI Growth Rate
The question asks us to arrange the Gross National Income (GNI) growth rate of India at constant prices for various financial years in ascending order. Ascending order means arranging values from the smallest to the largest.
Gross National Income (GNI) is the total income earned by a nation's people and businesses, regardless of where the income was earned. When calculated at constant prices, it removes the effect of inflation, giving a clearer picture of real economic growth.
To answer this question, we need to know the approximate GNI growth rates (or closely related GDP growth rates at constant prices, which follow similar trends) for the specified years:
- (A) 2015-16
- (B) 2016-17
- (C) 2017-18
- (D) 2018-19
- (E) 2019-20
India's Economic Growth Rates (Approximate)
Based on official data sources (like GDP growth at constant market prices, which is a good proxy for relative GNI growth):
| Year | Option | Approximate Growth Rate (at constant prices) |
|---|---|---|
| 2015-16 | (A) | \(8.2\%\) |
| 2016-17 | (B) | \(8.3\%\) |
| 2017-18 | (C) | \(6.8\%\) |
| 2018-19 | (D) | \(6.1\%\) |
| 2019-20 | (E) | \(3.9\%\) |
Arranging Growth Rates in Ascending Order
Now, let's arrange these approximate growth rates from smallest to largest:
- \(3.9\%\) (2019-20)
- \(6.1\%\) (2018-19)
- \(6.8\%\) (2017-18)
- \(8.2\%\) (2015-16)
- \(8.3\%\) (2016-17)
Mapping Back to Options
Corresponding these growth rates back to the options provided in the question:
- Smallest: \(3.9\%\) corresponds to year 2019-20, which is option (E).
- Next smallest: \(6.1\%\) corresponds to year 2018-19, which is option (D).
- Middle: \(6.8\%\) corresponds to year 2017-18, which is option (C).
- Next largest: \(8.2\%\) corresponds to year 2015-16, which is option (A).
- Largest: \(8.3\%\) corresponds to year 2016-17, which is option (B).
Therefore, the ascending order of the growth rates is (E), (D), (C), (A), (B).
Final Ascending Order
The growth rates in ascending order are:
(E) 2019-20 (3.9%) < (D) 2018-19 (6.1%) < (C) 2017-18 (6.8%) < (A) 2015-16 (8.2%) < (B) 2016-17 (8.3%)
This gives the sequence: (E), (D), (C), (A), (B).
Revision Table: India GNI Growth Analysis
| Option | Financial Year | Approximate Growth Rate (Constant Price) |
|---|---|---|
| (A) | 2015-16 | \(8.2\%\) |
| (B) | 2016-17 | \(8.3\%\) |
| (C) | 2017-18 | \(6.8\%\) |
| (D) | 2018-19 | \(6.1\%\) |
| (E) | 2019-20 | \(3.9\%\) |
Arranging these percentages in ascending order: \(3.9\% < 6.1\% < 6.8\% < 8.2\% < 8.3\%\).
Corresponding options: (E), (D), (C), (A), (B).
Additional Information: Understanding Economic Indicators
Gross National Income (GNI): GNI measures the total income earned by a country's residents and businesses, including income earned abroad. It's different from Gross Domestic Product (GDP), which measures the value of goods and services produced within a country's borders.
Constant Prices: Calculating GNI or GDP at constant prices means using a fixed base year's prices to value output. This removes the effect of inflation or deflation, allowing for a comparison of the real volume of goods and services produced or income earned over time.
Growth Rate: The growth rate indicates how much an economic indicator, like GNI, has increased or decreased over a specific period, usually a year. A positive growth rate signifies economic expansion, while a negative rate indicates contraction.
Understanding GNI growth rates helps economists and policymakers assess the health and performance of the national economy and formulate policies.
Important Questions from National Income Accounting
- A Giffen good exhibits an upward-sloping demand curve, a unique characteristic where the Law of Demand is violated. This phenomenon primarily arises when the negative income effect of a price change is so substantial that it outweighs the substitution effect. Based on this, which statement correctly describes the nature of the overall price effect and the income effect for a Giffen good?
In the context of Indian economy, consider the following statements:
1) The growth rate of GDP has steadily increased in the last five years.
2) The growth rate in per capita income has steadily increased in the last five years.
Which of the statements given above is/are correct?
The national income of a country for a given period is equal to the
Which of the following Institutions estimate the national income of India?
During a recession when GDP falls, disposable income _______.
