Which instrument was used to measure economic growth during the planning era?

Question

Question

This question was previously asked in

SSC CPO 2024 Official Paper-I (Held On: 29 Jun, 2024 Shift 3)

Answer 1

The correct answer is Gross Domestic Product.

Key Points

GDP became a central measure for assessing economic growth and progress during the planning era, helping to evaluate the effectiveness of various Five-Year Plans.
GDP includes the total value of all goods and services produced within a country's borders, providing a broad view of economic activity and growth.
While National Income was there, GDP gained prominence as the standard metric for measuring economic growth, particularly as planning and policy frameworks evolved.
Economic Planning: GDP data were crucial for setting economic targets and policy planning, allowing policymakers to track progress and make adjustments to achieve development goals.

Additional Information

Per Capita Gross Domestic Product (GDP):
- Per Capita GDP is the GDP divided by the population of a country, providing an average economic output per person.
- It is used to measure the economic standard of living or prosperity of individuals within a country, rather than the total economic output.
- Useful for comparing economic performance and living standards between different countries or regions.
Per Capita Income:
- Per Capita Income is the total income of a country divided by its population, reflecting the average income earned by individuals.
- Economic Indicator: Provides insight into the average standard of living and economic well-being of the population.
- Helps in analyzing income distribution and disparities within the country.
National Income:
- National Income is the total value of goods and services produced within a country plus net income from abroad, including wages, rents, and profits.
- Used extensively during the early planning era for measuring economic performance and setting policy targets.
- It Includes various components like Gross National Product (GNP), Net National Product (NNP), and personal income, providing a broad measure of economic activity.