NATIONAL INCOME QUIZ - 1 - EDUCATION WORLD

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What is the Gross domestic capital formation?

Flow of expenditure devoted to increase or maintaining of the capital stock

Expenditure incurred on physical assets only

Production exceeding demand

Net addition to stock after depreciation

None

Unbalanced regional growth in India is due to

unequal budgetary support by Central Government to different States

spatial distribution of industries

inadequate development of infrastructure in some States

All of the above

None

Choose the correct out of the following statements.

India's GDP is more than its GNP

Net Factor Income from Abroad (NFIA) is positive for India

Both (a) and (b)

Neither (a) nor (b)

None

Which out of the following can be beneficiaries of the "Mahatma Gandhi National Rural Employment Guarantee Act"?

Adult members of only the scheduled Caste and scheduled tribe households

Adult members of below poverty line (BPL) households

Adult members of households of all backward communities

Adult members of any household

None

The Purchasing Power Parity is used:

To make long-run predictions about exchange rates in a flexible exchange rate system

To make short-run predictions about exchange rates in a flexible exchange rate system

To make long-run predictions about exchange rates in a fixed exchange rate system

To make short-run predictions about exchange rates in a fixed exchange rate system

None

With reference to Gross National Product (GNP), choose the correct statements:

It represents the monetary value of all goods and services produced within nations geographic borders over a specified period of time

It is always greater than Gross domestic product

Both (a) and (b)

Neither (a) nor (b)

None

Who releases GDP Deflator?

CSO

Labour Bureau

Economic Advisor

Ministry of Finance

None

What was the aim of the Minimum Needs Programme?

Provide means for greater mechanization of agriculture

Improve the living condition of the poor and also promote their education and health

Provide necessary resources by way of refinance to primary lenders

None of these

None

What does Absolute Poverty mean?

Poverty in terms of absolute number of people

Poverty in terms of the basic minimum calorie requirements

Poverty in terms of the prevailing price level

Poverty in terms of the absolute level of unemployment

None

10.

Which of the following was another name for Food for Work programme?

Rural Landless Employment Guarantee Programme (RLEGP)

National Rural Employment Programme (NREP)

Jawahar Rozgar Yojana (JRY)

Integrated Rural Development Programme (IRDP)

None

11.

................visualized the relationship between the rate of interest and level of consumption.,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Amaryta K. Sen

Milton Friedman

Iriving Fisher

James Duesenberry

None

12.

Gross capital formation will increase if:

Gross domestic savings increases

Gross domestic consumption increases

Neither (a) nor (b)

None

13.

What does DWCRA stand for?

Development and Welfare of Catchment Rural Areas

Development of Women and Children in Rural Areas

Direct Welfare of Children in Rural Areas

All of the above

None

14.

GDP Deflator:

Covers whole economy

Covers remittances only

Covers Depreciation only

None of the above

None

15.

What was the main objective of Antyodaya programme?

Uplift the poor

Uplift the urban poor

Uplift the farmer

Uplift the landless labour

None

16.

Assertion (A): A country is poor because it is poor.

Reason (R): Income of a poor country is low, so its savings and investment are low. Low investment limits its productive capacity which leads to low output and income.

Codes:

Both (A) and (R) are correct, but (R) is not the correct explanation of (A).

Both (A) and (R) are correct, and explanation of (A).

(A) is correct but (R) is incorrect.

(A) is incorrect but (R) is correct. (R) is the correct

None

17.

................ is the situation where the marginal productivity of agriculture labour is zero.

Structural unemployment

Seasonal unemployment

Cyclical unemployment

Disguised unemployment

None

18.

Economic development process is concerned with:

A rise in per capita income

A rise in percentage GDP

Changes in structure of economy

None of these

None

19.

According to four phases of a business cycle. Justify the correct arrangement of the occurrence of all these phases:

Peak, Contraction, Expansion and Trough

Contraction, Peak, Trough and Expansion

Expansion, Trough, Contraction and Peak

Expansion, Peak, Contraction and Trough

None

20.

The data of estimation of India's National Income is calculated by:

Planning Commission

National Data Center

Central Statistical Organization.

None of the above

None

21.

Why do you think regional disparities in India are high and have been rising in recent years?

There is persistent investment over time only in selected sectors

Some areas are agro climatically less conductive to development

Both (a) and (b)

Neither (a) nor (b)

None

22.

Economics, what does the term Usual Principal Status indicate?

Comparison of GDP of two different nations

Employment status of a worker

Principal amount invested by a person in the bank on a particular interest

None of these

None

23.

Disposable Income means………

Net wages after deducting direct taxes.

Net wages after deducting indirect taxes.

Net wages after adjusting inflation.

None of the above

None

24.

What is Poverty Gap?

The difference between poverty line and actual income levels of all those living below that line

Gap between the rich and the poor

Gap between developed nations and developing nations

Gap in infrastructural facilities between developed and developing nations

None

25.

Gross Domestic Product (GDP) is defined as the value of all:

Goods produced in an economy in a year

Goods and services in an economy in a year

Final goods produced in an economy in a year

Final goods and services produced in an economy in a year.

None

26.

An agreement between two countries to maintain a free trade area, a common external tariff, free mobility of capital and labour and degree of unification in government policies and monetary policy is called:

Common market

Free trade area

Economic union

Customs union

None

27.

Mark the correct statement.

GDP is essentially about where the production takes place

GNP is about who produces.

Both (a) and (b)

Neither (a) nor (b)

None

28.

Why unemployment rate is high in a developing country?

People switch over from one job to another

Lack of effective demand

Seasonal factors

Lack of complementary factors of production

None

29.

Assertion (A): Consumption is high when saving is high. Reason (R): Income is high when investment is high. Codes:

Both (A) and (R) are true, and (R) is the correct explanation of (A).

Both (A) and (R) are true, and (R) is not the correct explanation of (A).

(A) is true but (R) is false.

(A) is false but (R) is true.

None

30.

Assertion (A): All historical events are the result of a continuous economic struggle between different classes and groups in a society.

Reason (R): This struggle is because of the conflict between the mode of production and the value attached to the roles of different agents of production.

Codes:

Both (A) and (R) are correct but (R) is not the correct explanation of (A).

Both (a) and (R) are correct and (R) is the correct explanation of (A)

(A) is correct but (R) is incorrect.

(A) is incorrect but (R) is correct.

None

31.

Choose the correct statement:

Bulk of unemployment in India is in rural areas

The disguised unemployment in agricultural sector is perennial

Both (a) and (b)

Neither (a) nor (b)

None

32.

In the closed economy:

GDP is always greater than GNP

GDP is always less than GNP

GDP is always equal to GNP

GDP does not exist in closed economy

None

33.

Recently talks are on to change the base year for calculating GDP in India. Which year it will be?

2015-16

2017-18

2016-17

2018-19

None

34.

GDP deflator is a:

Nominal GDP + Real GDP

Nominal GDP / Real GDP

Nominal GDP - Real GDP

Nominal GDP × Real GDP

None

35.

Gross fiscal deficit - Interest payments = ?

Revenue deficit

Gross Primary deficit

Capital deficit

Budgetary deficit

None

36.

Which of the following standard can be used to estimate standard of living in any country?

Increase in GNP at cost including taxes and duties

Increase in GNP at factor cost

Increase in NNP at factor cost

None of the above

None

37.

National income in India is estimated by:

Planning Commission

Finance commission

Indian Statistical Institute

Central Statistical organisation

None

38.

Nominal GDP refers to the value of goods at:

Current price

Constant price

Depreciated price

None of the above

None

39.

Which of the following is correct measurement of fiscal deficit in India?

Excess of total revenue expenditure over total revenue receipts.

Excess of total expenditure over total revenue receipts plus non-debt capital receipts.

Excess of total expenditure over total receipts.

Excess of total expenditure over total interest payments.

None

40.

The largest source of national income in India is:

Service sector.

Agriculture sector

Industrial sector

Trade sector

None

41.

Which of the following equation refers to 'Marginal Cost?

Total cost divided by quantity

The change in total cost divided by the change in quantity

Total cost minus total benefit for the last unit produced

Total cost divided by total benefit for the last unit produced

None

42.

What is Hedging?

The acceptance of a foreign exchange risk

The covering of a foreign exchange risk

Foreign exchange speculation

Foreign exchange arbitrage

None

43.

India's national income is equal to which of the following?

Gross National Product (GNP)

Net National Product at Market Prices

Net National Product at Factor Cost

Income going to the household sector

None

44.

Which of the following Committee recommendations are related to the estimation of population of poor in India?

Dutt Committee

Chelliah Committee

Chakravorty Committee

Lakdawala Committee

None

45.

Other things remaining unchanged, when in a country the price of foreign currency rises, national income is:

Likely to rise

Likely to fall

Likely to rise and fall both

Not affected

None

46.

The basis of determining dearness allowance to employees in India is:

National Income

Consumer Price Index

Standard of Living

Per Capita Income

None

47.

The Growth process resulting into broad base benefits and providing equality of opportunity to all is referred to as:

Faster growth

Inclusive grow

Exclusive growth

Sustained growth

None

48.

The difference between GDP and NDP is:

Government revenue

Net Indirect Tax (Indirect Tax subsidy)

Consumption of fixed capital

Net capital formation

None

49.

According to the Indian economy which of the following persons are termed as living below the poverty line?

They are entitled to a minimum prescribed food basket

They get work for a prescribed minimum number of days in a year

They belong to agricultural labourer household and the scheduled caste/tribe social group

Their daily wages fall below the prescribed minimum wages

None

50.

To calculate the 'labour force' which of the following appropriate item:

Workforce

All educated

Employed + Unemployed

All rural workers

None

Time's up

Time is Up!

NATIONAL INCOME QUIZ – 1

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