Often GDP (real GDP) is considered as an index of welfare of the people. Welfare means sense of material well-being among the people. This depends upon availability of goods and services per person for consumption. When GDP (or GNP) rises, it shows increase in flow of goods & services. Greater availability of goods and services implies higher standard of living which increases economic welfare. So one may conclude that higher level of GDP is an index of greater well-being of the people. But this may not be correct due to following limitations or reasons.

The GDP deflator, also called implicit price deflator, is a measure of inflation. It is the ratio of the value of goods and services an economy produces in a particular year at current prices to that of prices that prevailed during the base year.

(i) Profit earned by a foreign bank is included in domestic product of India because the banks branches are located in the Indian domestic territory. (ii) Scholarships is a trasnfer payment because no service is provided in return. So, it is not included in domestic income.

Operating surplus does not arise in the subsistence sector and in the general government sector because of the following reasons: (i) in the subsistence sector, production is meant only for subsistence of the producing families. Production is not meant for sale in the market. Accordingly, there is no operating surplus.

Reason that goverment's operating surplus is zero or nil is that the main motive of government is maximisation of social welfare rather than profit. The subsistence sector relies on natural resources to provide basic needs. Even the term subsistence means supporting oneself at minimal level.

GDP deflator, also known as the implicit price deflator, is used to measure inflation. It is used to determine the levels of prices of the new, domestically produced final goods and services in a country in a year.

GDP deflector shows the changes in the average price levels in the economy, and therefore, it is used in conjunction with the Consumer Price Index (CPI) for measuring inflation.

GDP deflator formula can be represented as

GDP deflator = Nominal GDP / Real GDP * 100

Like other price indices such as CPI, GDP deflector is not formed on a fixed basket of goods and services. The basket is altered every year depending on people’s investment and consumption patterns for that year.

Money flows are opposite to real flows. Because money flow are in response to the real flows. Example-There is a real flow of goods and services from the producers to the households. It is in response to it that the households makes payments to the producers. So that money flows from the households to producers in terms of consumption expenditure. Likewise there is a real flow of factor services from the households to the producers. It is in response to it that the producers make payments to the households. So that money flows from producers to the households in terms of factor payments.

Capital formation implies an increase in capital assets such as plant and machinery, buildings and equipment available to the firm.

Now, with a higher net capital formation, means higher capital equipments per unit of labour.

This leads to a higher productivity/efficiency of labour.

Macroeconomics is the study of aggregates while microeconomics is not. ... It is in microeconomics that we study concepts like market demand which is the aggregate of individual demand for a commodity. However, the difference lies in the degree of aggregation. Microeconomics is the study of individuals, households and firms' behavior in decision making and allocation of resources. It generally applies to markets of goods and services and deals with individual and economic issues.

Circular Flow of Income in a Two-sector Economy.: 
Let us start with a simplified model involving two sectors, namely, household sector and firm sector, assuming that there is no Govt. We further assume that the economy is a closed one having no exports or imports. Similarly there is no saving by the households, who spend all what they earn; and no investment by the firms. Such an economy has two types of markets — Product market and Factor market. Under these presumptions the firm sector hires factor services from households, who are owners of factors of production (land, labour, capital and enterprise), for producing goods and services and pays them remuneration (or compensation) in the form of money for rendering the productive services. For the factors of production, these are factor incomes known as rent, wages, interest and profit which have been generated in the production process. Thus money income flows from firm sector to the households. With this money the households purchase from the firms, manufactured goods and services to satisfy their wants with the result, the same money flows back from households to the firm sector. Thus entire income of economy comes back to firms in the form of sales revenue. Clearly one man's (or sector's) expenditure is other man's (or sector's) income. 

Mukesh belongs to the family of bangle makers in Firozabad where each family is engaged in bangle making. They live in half built huts and stinky lanes. On asking, Mukesh says,, “I will be a motor mechanic. I will learn to drive a car”. Thus he wants to be his own master.

Mukesh is quite different from other bangle makers of Firozabad because he has the courage to take initiative and break from the traditional family occupation. He has strong will power also. He insists on being his own master by becoming a motor mechanic.

Franz was not scolded for reaching the school; late on that day because everyone was very sad because of the notice. As per the notice, it was instructed that French would not be taught in the schools, instead, German would be taught from the next day onward. It was M.Hamel's last lesson in French and because of this reason, there was a sense of grief and sadness everywhere.

Since Saheb now works in a tea-stall, he is now bound to his master and feels burdened. The steel canister he carries is very heavy as compared to his light plastic bag. The bag was his own and the canister belongs to his master whose orders he now has to follow. So he is no longer his own master.

(i) SI unit of electric field intensity is NC^-1 (Newton per Coulomb).

• Gotra: From c. 1000 BCE, people (especially Brahmanas) were classified into different gotras. Each gotra was named after a Vedic seer, and all those who belonged to the same gotra were regarded as his descendants.
• Two important rules of gotras are: Women were expected to give up their father’s gotra and adopt that of their husband on marriage and members of the same gotra could not marry.

• The Indus Valley Civilization was established around 3300 BC. It flourished between 2600 BC and 1900 BC (Mature Indus Valley Civilization). It started declining around 1900 BC and disappeared around 1400 BC.
• This is also called Harappan Civilization after the first city to be excavated, Harappa (Punjab, Pakistan).
• Pre-Harappan civilization has been found at Mehrgarh, Pakistan which shows the first evidence of cotton cultivation.
• Geographically, this civilization covered Punjab, Sindh, Baluchistan, Rajasthan, Gujarat and Western Uttar Pradesh. It extended from Sutkagengor (in Baluchistan) in the West to Alamgirpur (Western UP) in the East; and from Mandu (Jammu) in the North to Daimabad (Ahmednagar, Maharashtra) in the South. Some Indus Valley sites have also been found in as far away as Afghanistan and Turkmenistan.
• In India: Kalibangan (Rajasthan), Lothal, Dholavira, Rangpur, Surkotda (Gujarat), Banawali (Haryana), Ropar (Punjab). In Pakistan: Harappa (on river Ravi), Mohenjodaro (on Indus River in Sindh), Chanhudaro (in Sindh).
• The civilization was first discovered during an excavation campaign under Sir John Hubert Marshall in 1921–22 at Harappa following the discovery of seals by J Fleet.
• Harappan ruins were discovered by Marshall, Rai Bahadur Daya Ram Sahni and Madho Sarup Vats.
• Mohenjodaro ruins were excavated for the first time by R.D. Banerjee, E. J. H. MacKay and Marshall.
• The Indus Valley cities show a level of sophistication and advancement not seen in other contemporary civilizations.
• Most cities had similar patterns. There were two parts: a citadel and the lower town.
• Most cities had a Great Bath.

Early Satavahanas: The founder of the Satavahana dynasty was Simuka. He and his successors established their authority from the mouth of the Krishna to the entire Deccan plateau. According to the Puranas, the Satavahana king killed the last Kanva ruler of Magadha and presumably took possession of his kingdom.

Satavahana rulers were identified through metronymics which means that names were derived from that of their mother's. It does indicate that Mother in some level was regarded high in the society.

Scholars have stated many reasons for the decline of the Indus valley civilization:
i. Some scholars suggest that it could be due to natural calamities like floods, earthquakes, droughts or epidemics.

ii. some scholar suggest that it could be due to the end of strong unifying element. or the end of Harappan state which lead to the decline of the civilization.

Following are the important features of the town planning of the Harappan cities:

1. The Harappan cities were generally divided into two main parts - the raised area; known as the ‘Citadel’, and the lower town. The Citadel was more in height because the buildings in it were built on mud brick platforms. This area was separated from the lower town by a wall. The Citadel had within its fold important buildings like the Great Bath, the assembly hall, the granary and the workshops. The lower town, on the other hand had residential dwellings.
2. The main streets of the Harappan cities were built according to the grid pattern. They were built from north to south and from east to west.
3. The houses built on the corners of streets were rounded in order to allow the passage of carts. The main road in the city of Mohenjo-daro was 10.5 meters wide and 800 meters long.
4. The house drains relayed all the waste water to the drains built in streets.
5. The streets were so designed as to cross the main road of the city at right angles, thus dividing the city into square or rectangular blocks.

Indus Valley Civilization which is also referred as Harappan civilization is of the largest cities of its time.This civilization was discovered in 1920 - 22 with the excavation of two of its most important sites i.e , Harappa on the banks of the river Ravi and Mohenjodaro on the banks of the Indus. The Indus Valley civilization is called the Harappan civilization because Harappa was the first site where the unique archaeological evidences of the civilization were discovered.

John Marshall was an archaeologist

He announced the discovery of a new civilization i.e. Indus Valley Civilization/ Harappa culture

He displays his love for French languageM. Hamel told them that French was the most beautiful language in the world. It was the clearest and the most logical language. He asked them to guard it among them and never forget it. He gave a reason also. When a people were enslaved, as long as they held fast to their language, they had the key to their prison.

Stephen Spender uses a fine metaphor “History is theirs whose language is the sun.” All know that the world is governed by the rich, dictator and the powerful people. But there are people who create their history through their own language, ideas and views. They influence the public through warmth of speech and ideas. So their language must contain the warmth and strength of the sun to create history.