Key Indicators of Economic Growth


 
 
Concept Explanation
 

Key Indicators of Economic Growth

(i) Gross Domestic Product (GDP) - Gross Domestic Product is the total value of the goods and services produced within the domestic limits of any country in a financial year.

(ii) Domestic Boundary - In addition to the geographical boundary of any country, the maritime distance of up to 12 nautical miles from it comes under its domestic border.

(ii) Since 1994, under the United Nations Convention on the Laws of the Seas, 1982, any country has been granted the right to exploit resources from its geographical boundary to a maritime limit of 200 nautical miles This maritime zone up to 200 nautical miles is called Exclusive Economic Zone.

  • This is different from the domestic border where only the EEZ has the right to exploit resources, while the domestic border also expands the sovereignty of that country along with the exploitation of resources.
  • (iv) Gross National Product (GNP) - When net income derived from abroad is combined with the total value of goods and services produced within the domestic limits of a country in a financial year, it is called Gross National Product.

    GNP = GDP + Net Income from Abroad

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    Sample Questions
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    Question : 1

    Exclusive Economic Zone means ______________

    Right Option : A
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