Suppose that one million unemployed persons in a country are receiving Rs. 6000 per month per person as an unemployment allowance. If the government, instead of paying unemployment allowance, hires all of them at the same amount (Rs. 6000 per month per person) and engages them in digging the pits and filling the same pits. What will be the effect on GDP?
If the government hires the unemployed persons and pays them the same amount they were receiving as an unemployment allowance, and engages them in any form of economic activity (even if it is digging and filling pits), the payments become part of government expenditure on wages. In national income accounting, government expenditure on goods and services, including wages paid to employees, is counted as part of GDP. Therefore, hiring the unemployed persons and paying them for their labor will increase the government expenditure component of GDP.
What is the approximate height above Earth at which geostationary satellites orbit?
Who is the current Chief Justice of India?
Which of the following statement/ statements is/are correct regarding bills in the parliament?
a) Money bill can be introduced either in Lok Sabh...
Which of the following Vedas is concerned with the origin of Indian Medicine?
In 2016, which Indian Financial System method was introduced by RBI?
For book-built issues opening on or after April 1, 2022, SEBI said ________ of the portion available to NIIs will be reserved for applicants with applic...
In which state is the ‘Balphakram National Park’ situated?
Arrange the following freshwater lakes in Decreasing order area wise:
I) Huron
II) Victoria
III) Tanganyika
IV) Michigan
Which of the following defines disguised unemployment?
‘S’ in SRFAESI Act, denotes?