Practice Questions

• Double Counting: The primary reason for considering only final goods and services when calculating the Gross Domestic Product (GDP) is to avoid the problem of double counting.

• Intermediate Goods: Intermediate goods are those goods that are used as inputs in the production of other goods and services. For instance, the flour used by a baker to make bread is an intermediate good.

• Value Chain: If the value of intermediate goods were included in GDP along with the value of the final goods, their value would be counted multiple times. The value of the flour would be counted when it's sold to the baker, and then the value of the bread (which already includes the cost of the flour) would be counted again. This would artificially inflate the GDP figure.

its immobility, the active economic flow is ended.

the value added at each stage of the production process is included

<h3 style="color: rgb(255,255,255);">Shramshakti Report</h3><ul style="color: rgb(255,255,255);"><li>The <b>Shramshakti</b> report was a landmark document submitted during India's <b>Seventh Five-Year Plan (1985-1990)</b>.</li><li>It was the comprehensive report of the <b>National Commission on Self-Employed Women and Women in the Informal Sector</b>.</li><li>The commission was established to study the conditions and challenges faced by women in various forms of self-employment and the unorganized sectors of the economy.</li><li>Key areas addressed in the report included:<ul style="color: rgb(255,255,255);"><li><b>Working Conditions:</b> Highlighting poor working conditions, long hours, and lack of safety measures.</li><li><b>Low Wages:</b> Documenting the issue of meager earnings and wage disparities.</li><li><b>Lack of Social Security:</b> Pointing out the absence of benefits like health insurance, pension, and maternity leave.</li><li><b>Access to Credit and Resources:</b> Identifying barriers to financial inclusion and access to productive assets.</li><li><b>Skill Development:</b> Recommending initiatives for enhancing skills and employability.</li></ul></li><li>The report made significant recommendations to improve the socio-economic status and empowerment of women in the informal sector.</li><li>These recommendations aimed at policy changes, legislative interventions, and program implementation to address the specific vulnerabilities and needs of this demographic.</li><li>The submission of the Shramshakti report was a crucial step in recognizing the contribution of women in the informal economy and advocating for their rights and welfare within the framework of national development plans.</li><li>The Seventh Five-Year Plan itself focused on growth, modernization, and self-reliance, with an emphasis on employment generation, poverty alleviation, and social justice, making the Shramshakti report a relevant and timely contribution.</li></ul>

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