1. What is another term for Net National Product (NNP) at market price?
a) National Income
b) Gross Domestic Product (GDP)
c) Personal Income
d) Per Capita Income
Answer: a) National Income
2. Net National Product (NNP) of a country is:
a) GDP minus depreciation allowances
b) GDP plus net income from abroad
c) GNP minus net income from abroad
d) GNP minus depreciation allowances
Answer: d) GNP minus depreciation allowances
3. Which of the following is considered part of the service sector?
a) Textile Mills
b) Banking
c) Coal Mines
d) Agriculture
Answer: b) Banking
4. Which sector contributes the most to India’s Gross National Product (GNP)?
a) Primary Sector
b) Secondary Sector
c) Tertiary Sector
d) Public Sector
Answer: c) Tertiary Sector
5. Per capita income of a country is derived from:
a) National Income
b) Population
c) Both National Income and Population
d) None of these
Answer: c) Both National Income and Population
6. The term “Hindu Rate of Growth” in India is associated with:
a) Birth Rate
b) Population
c) Per Capita Income
d) National Income
Answer: d) National Income
7. In India, the tertiary sector includes:
a) Banking
b) Construction
c) Trade
d) All of the above
Answer: d) All of the above
8. Which of the following is NOT a method for measuring National Income?
a) Value Added Method
b) Income Method
c) Investment Method
d) Expenditure Method
Answer: c) Investment Method
9. The most appropriate reason for income inequalities is:
a) Racial factors
b) Lack of opportunities
c) Family inheritance
d) Differences in ability
Answer: b) Lack of opportunities
10. National Income includes:
a) Financial aid to earthquake victims
b) Child’s pocket money
c) Lottery winnings
d) Construction of new houses
Answer: d) Construction of new houses
11. National Income of a country refers to:
a) Government’s annual revenue
b) Total productive income
c) Public sector enterprise surplus
d) Export and Import balance
Answer: b) Total productive income
12. The aggregate net value of output in one year is known as:
a) National Income at Factor Cost
b) GDP at Market Price
c) Net National Product (NNP) at Market Price
d) Gross National Product (GNP) at Market Price
Answer: c) Net National Product (NNP) at Market Price
13. In a highly developed country, the contribution of agriculture to GDP is:
a) High
b) Moderate
c) Low
d) None of these
Answer: c) Low
14. Who first estimated National Income in India?
a) V.K.R.V. Rao
b) Dadabhai Naoroji
c) R.C. Dutt
d) D.R. Gadgil
Answer: b) Dadabhai Naoroji
15. Which of the following is NOT included in National Income estimation through the income method?
a) Rent
b) Mixed Incomes
c) Pension
d) Undistributed Profits
Answer: c) Pension
16. Which method is NOT used for determining National Income?
a) Income Method
b) Product Method
c) Expenditure Method
d) Investment Method
Answer: d) Investment Method
17. Which component is NOT a part of National Income?
a) Wages and Salaries
b) Profits
c) Rent
d) Interest on National Debt
Answer: d) Interest on National Debt
18. What does Gross Domestic Product (GDP) measure?
a) Goods produced in an economy in a year
b) Goods and services produced in an economy in a year
c) Final goods produced in an economy in a year
d) Final goods and services produced in an economy in a year
Answer: d) Final goods and services produced in an economy in a year
19. Which sector’s contribution is the highest in India’s National Income?
a) Agriculture
b) Industry
c) Services
d) Manufacturing
Answer: c) Services
20. Which of the following is a transfer payment and not included in National Income?
a) Salaries
b) Pensions
c) Profits
d) Rents
Answer: b) Pensions
21. What is considered a leakage in the circular flow of income?
a) Investment
b) Taxes
c) Savings
d) Government Expenditure
Answer: c) Savings
22. Which organization is responsible for National Income estimation in India?
a) Reserve Bank of India
b) Central Statistical Organization (CSO)
c) NITI Aayog
d) Ministry of Finance
Answer: b) Central Statistical Organization (CSO)
23. Which indicator is best for comparing the standard of living of different countries?
a) GDP
b) GNP
c) Per Capita Income
d) National Income
Answer: c) Per Capita Income
24. What does ‘Real National Income’ mean?
a) National Income at Current Prices
b) National Income at Constant Prices
c) Nominal National Income
d) Gross National Income
Answer: b) National Income at Constant Prices