1. GDP at Factor Cost is:
a) GDP minus indirect taxes plus subsidies
b) GDP minus depreciation allowances
c) NNP plus depreciation allowances
d) GDP minus subsidies plus indirect taxes
Answer: a
2. The preparation of National Income Estimates is the responsibility of:
a) Planning Commission
b) National Development Council
c) National Sample Survey Organisation
d) Central Statistical Organisation
Answer: d
3. Who among the following Indian economists has done pioneering work on National Income?
a) Jagdish Bhagwati
b) M.L. Seth
c) Amartya Sen
d) V.K.R.V. Rao
Answer: d
4. Which of the following is deducted from NNP to arrive at NI?
a) Indirect Tax
b) Capital Consumption Allowance
c) Subsidy
d) Interest
Answer: a
5. Gross Domestic Product (GDP) is a measure of:
a) A country’s international economic activities
b) A country’s domestic economic activities
c) A country’s financial position
d) A country’s industrial output
Answer: b
6. National income can be calculated in all except one of the following ways:
a) Sum of all expenditure
b) Sum of all outputs
c) Sum of all savings
d) Sum of all income
Answer: c
7. The method of calculating the national income by the product method is also known as:
a) Income method
b) Value-added method
c) Expenditure method
d) None of these
Answer: b
8. In calculating National Income, which of the following is included?
a) Services of housewives
b) Pensions
c) Income of smugglers
d) Income of watchmen
Answer: d
9. Which of the following is a better measurement of economic development?
a) GNP
b) Disposable income
c) NNP
d) Per capita income
Answer: d
10. Which of the following is not included in the National Income?
a) Imputed rent of owner-occupied houses
b) Government expenditure on making new bridges
c) Winning a lottery
d) Commission paid to an agent for the sale of a house
Answer: c
11. National Income is:
a) Net National Product at market price
b) Net National Product at factor cost
c) Net Domestic Product at factor cost
d) Net Domestic Product at market price
Answer: b
12. A very high rise in National Income at current market prices and a low rise at constant prices reveals:
a) The high rate of economic growth in the current period
b) Increased production in the current period
c) Improper growth of the country
d) A high rate of inflation prevailing in the economy
Answer: d
13. Transfer payments mean:
a) Old age pension
b) Unemployment compensations
c) Social security payment
d) All of the above
Answer: d
14. Which of the following is not an investment expenditure in goods and services?
a) Expansion of the main plant of a company
b) Purchase of a house
c) Purchase of machinery
d) An increase in business inventories
Answer: b
15. The relationship between the rate of interest and the level of consumption was first visualized by:
a) Amartya K. Sen
b) Milton Friedman
c) Irving Fisher
d) James Duesenberry
Answer: c
16. Which of the following best indicates economic growth of a Nation?
a) Agricultural income
b) Per capita income
c) Gross industrial production
d) Inflation
Answer: b
17. The value of total goods and services produced in a country is called:
a) Gross Domestic Product (GDP)
b) Gross Revenue Income
c) Total Goods Revenue
d) Total Income
Answer: a
18. Which of the following measures will not increase a nation’s wealth?
a) Investing in new companies
b) Increasing efficiency of factories
c) Converting grasslands into orchards
d) Redistributing taxes as subsidies
Answer: d
19. Which of the following is called GDP deflation?
a) Ratio of nominal to real GDP
b) Ratio of nominal to real GNP
c) Ratio of nominal to real CPI
d) Ratio of real to nominal GNP
Answer: b
20. GDP – Indirect Taxes + Subsidies = ?
a) NNP at factor cost
b) GDP at factor cost
c) GNP
d) Personal Income
Answer: b
21. Which organization measures the Gross Domestic Product in India?
a) Reserve Bank of India
b) NITI Aayog
c) State Bank of India
d) Central Statistics Office
Answer: d