U.S.A

London

1894

Afrikaners

Ferdinand Lassalle

Methods of calculating GDP are as follows :

(i) Expenditure Approach :

(1) In this method, the GDP is measured by adding the expenditure on all the final goods and services produced in the country during a specified period.

(2) GDP(Y) = C + I + G + X - M

(ii) The Income Approach :

(1) This method looks at GDP from the perspective of the earnings of the men and women who are involved in producing the goods and services.

(2) The income approach to measuring GDP (Y) is

Y = Wages + Rent + Interest + Profit

(iii) Value Added Approach:

(1) In the value added approach the value added by each intermediate good is summed to estimate the value of the final good.

(2) The sum of the value added by all the intermediate goods used in production equals to the total value of the final goods produced in the economy.

(3) For example: A cup of tea served to you in a hotel is a "final good".

(4) The goods used to produce it, tea powder, milk and sugar are "intermediate goods" since they form a part of the final goods, the cup of tea.

(5) One way to measure the market value of the cup of tea is to add the value produced by each intermediate good used, to produce it. Each intermediate good, the tea powder, milk and sugar, adds value to the final output, the cup of tea.

Various terms associated with measuring of National Income are as follows :

(i) Gross National Product (GNP):

(1) Gross National Product is the total value of goods and services produced and income received in a year by domestic residents of a country.

(2) It incudes, profits earned from capital invested abroad.

(3) GNP = C + I + G + (X - M) + NFIA

C = Consumption

I = Investment

G = Government Expenditure

X - M = Export - Import

NFIA = Net Factor Income from Abroad

(ii) Gross Domestic Product (GDP):

Gross Domestic Product is the total value of output of goods and services produced by the factors of production within the geographical boundaries of the country.

(iii) Net National Product (NNP):

(1) Net National Product is arrived by making some adjustment with regard to depreciation that is we arrive the NNP by deducting the value of depreciation from Gross National Product.

(2) NNP = GNP – Depreciation

(iv) Net Domestic Product (NDP) :

(1) Net Domestic Product is a part of Gross Domestic Product.

(2) NDP is obtained from the Gross Domestic Product by deducting the Quantum of tear and wear expenses (Depreciation).

(3) NDP = GDP - Depreciation

(v) Per Capita Income (PCI) :

(1) Per Capita Income or output per person is an indicator that shows the living standard of people in a country.

(2) It is obtained by dividing the National income by the population of a country.

PCI = National Income / Population.

(vi) Personal Income(PI) :

(1) Personal Income is the total money income received by individuals and households of a country from all possible sources before direct taxes.

(vii) Disposable Income(DI) :

(1) Disposable income means actual income which can be spent on consumption by individuals and families.

(2) It can be expressed as,

(3) DPI = PI - Direct taxes

(From consumption approach DI = Consumption Expenditures + Savings)

Salient features of Indian Constitution

(i) It is the lengthiest of all the written constitutions of the world.

(ii) It has borrowed most of its provisions from the constitutions of various countries.

(iii) It is partly rigid and partly flexible.

(iv) It establishes a federal system of government.

(v) It makes India a secular state.

(vi) It provides an independent judiciary.

(vii) It introduces Universal Adult Franchise and accords the right to vote to all citizens above 18 years of age without any discrimination.

European Alliances and Counter - Alliances:

(i) In 1900 five of the European Great Powers i were divided into two armed camps

(ii) One camp consisted of the Central Powers Germany, Austria-Hungary and Italy.

(iii) Under the guidance of Bismarck, they had formed the Triple Alliance in 1882

(iv) The other camp consisted of France and Russia.

(v) The Anglo-Japanese Alliance prompted France to seek an alliance with Britain. Which resulted in the Entente Cordiale (1904).

(vi) Britain subsequently reached agreement with Russia and formed the Triple Entente (1907) of Britain, France and Russia.

Violent Forms of Nationalism :

(i) With the growth of nationalism, the attitude of "my country right or wrong I support it" developed.

(ii) England's jingoism, France's chauvinism and Germany's Kultur were militant forms of nationalism, contributing decisively to the outbreak of War.

Aggressive Attitude of German Emperor:

(i) Emperor Kaiser Wilhelm II of Germany was ruthlessly assertive and aggressive.

(ii) Napoleon's defeat at Trafalgar (1805), Germany's aggressive diplomacy and rapid building of naval bases convinced Britain that a German navy could be directed only against her

(iii) Therefore, Britain embarked on a naval race, which heightened the tension between the two powers

Hostility of France towards Germany:

(i) France and Germany were old rivals. Bitter memories of the defeat of 1871 and loss of Alsace and Lorraine to Germany rankled in the minds of the French.

(ii) German interference in Morocco added to the bitterness

Imperial Power Politics in the Balkans :

(i) The Young Turk Revolution of 1908, Austria and Russia resumed their activities in the Balkans.

(ii) Austria announced the annexation of Bosnia and Herzegovina.

(iii) Austria's action aroused intense opposition from serbia. Germany firmly supported Austria.

(iv) The enmity between Austria and Serbia led to the outbreak of war in 1914.

The Balkan Wars :

(i) Turkey was a powerful country in the south west of Europe in the first half of eighteenth century.

(ii) Both the Turks and their subjects of different nationalities in the Balkans experienced rising tensions and conflicts

(iii) There were rivalries among Greece, Serbia, Bulgaria and later Montenegro for the control of it. In March 1912 they formed the Balkan League

(iv) The Second Balkan War ended with the signing of the Treaty of Bucharest in August 1913

Immediate Cause:

(i) The climax to these events in the Balkans occurred in Sarajevo in Bosnia.

(ii) On 28 June 1914 the Archduke Francis Ferdinand, heir to Francis Joseph, Emperor of Austria-Hungary, was assassinated by Princip, a Bosnian Serb

(iii) Austria saw in this an opportunity to eliminate Serbia as an independent state.

(iv) The German violation of Belgian neutrality forced Britain to enter war.

(c) A is right but R is not the correct explanation

(i) The Himalayas are called young fold mountains because they have been formed only a few million years ago, and also they were formed because of the folding of the earth crust due to tectonic activity.

(ii) Himalayas have parallel ranges, sharp pointed peaks and steep slopes indicating that they are young fold mountains.