DOWNLOAD MOBILE APPLICATION TO LEARN MORE: MCQ ON NATIONAL INCOME OF INDIA
DOWNLOAD MOBILE APPLICATION TO LEARN MORE: MCQ ON NATIONAL INCOME OF INDIA
DOWNLOAD MOBILE APPLICATION TO LEARN MORE: MCQ ON NATIONAL INCOME OF INDIA
Table of Contents
MCQ ON NATIONAL INCOME OF INDIA
1. Which of the following standard can be used to estimate standard of living in any country?
(a) Increase in GNP at cost including taxes and duties
(b) Increase in GNP at factor cost
(c) Increase in NNP at factor cost
(d) None of the above
Ans. c
2. Economics, what does the term Usual Principal Status indicate?
(a) Comparison of GDP of two different nations
(b) Employment status of a worker
(c) Principal amount invested by a person in the bank on a particular interest
(d) None of these
Ans. b
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3. The data of estimation of India’s National Income is calculated by:
(a) Planning Commission
(b) National Data Center
(c) Central Statistical Organization.
(d) None of the above
Ans. c
4. What is the Gross domestic capital formation?
(a) Flow of expenditure devoted to increase or maintaining of the capital stock
(b) Expenditure incurred on physical assets only
(c) Production exceeding demand
(d) Net addition to stock after depreciation
Ans. d
5. Gross capital formation will increase if:
(a) Gross domestic savings increases
(b) Gross domestic consumption increases
(c) Both (a) and
(d) Neither (a) nor (b)
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Ans. d
6. Choose the correct out of the following statements.
(a) India’s GDP is more than its GNP
(b) Net Factor Income from Abroad (NFIA) is positive for India
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Ans. a
7. With reference to Gross National Product (GNP), choose the correct statements:
(a) It represents the monetary value of all goods and services produced within nations geographic borders over a specified period of time
(b) It is always greater than Gross domestic product
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Ans. d
8. Gross Domestic Product (GDP) is defined as the value of all:
(a) Goods produced in an economy in a year
(b) Goods and services 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.
Ans. d
9. GDP Deflator:
(a) Covers whole economy
(b) Covers remittances only
(c) Covers Depreciation only
(d) None of the above
Ans. a
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10. The Purchasing Power Parity is used:
(a) To make long-run predictions about exchange rates in a flexible exchange rate system
(b) To make short-run predictions about exchange rates in a flexible exchange rate system
(c) To make long-run predictions about exchange rates in a fixed exchange rate system
(d) To make short-run predictions about exchange rates in a fixed exchange rate system
Ans. a
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11. GDP deflator is a:
(a) Nominal GDP + Real GDP
(b) Nominal GDP / Real GDP
(c) Nominal GDP – Real GDP
(d) Nominal GDP
Ans. b
12. In the closed economy:
(a) GDP is always greater than GNP
(b) GDP is always less than GNP
(c) GDP is always equal to GNP
(d) GDP does not exist in closed economy
Ans. c
13. Mark the correct statement.
(a) GDP is essentially about where the production takes place
(b) GNP is about who produces.
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Ans. c
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14. Who releases GDP Deflator?
(a) CSO
(b) Labour Bureau
(c) Economic Advisor
(d) Ministry of Finance
Ans. a
15. Nominal GDP refers to the value of goods at:
(a) Current price
(b) Constant price
(c) Depreciated price
(d) None of the above
Ans. a
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16. India’s national income is equal to which of the following?
(a) Gross National Product (GNP)
(b) Net National Product at Market Prices
(c) Net National Product at Factor Cost
(d) Income going to the household sector
Ans. b
17. Other things remaining unchanged, when in a country the price of foreign currency rises, national income is:
(a) Likely to rise
(b) Likely to fall
(c) Likely to rise and fall both
(d) Not affected
Ans. b
18. Recently talks are on to change the base year for calculating GDP in India. Which year it will be?
(a) 2015-16
(b) 2017-18
(c) 2016-17
(d) 2018-19
Ans. b
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19. Disposable Income means………
(a) Net wages after deducting direct taxes.
(b) Net wages after deducting indirect taxes.
(c) Net wages after adjusting inflation.
(d) None of the above
Ans. a
20. 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:
(a) Common market
(b) Free trade area
(c) Economic union
(d) Customs union
Ans. c
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21. To calculate the ‘labour force’ which of the following appropriate item:
(a) Workforce
(b) All educated
(c) Employed + Unemployed
(d) All rural workers
Ans. c
22. What is Hedging?
(a) The acceptance of a foreign exchange risk
(b) The covering of a foreign exchange risk
(c) Foreign exchange speculation
(d) Foreign exchange arbitrage
Ans. b
23. According to four phases of a business cycle. Justify the correct arrangement of the occurrence of all these phases:
(a) Peak, Contraction, Expansion and Trough
(b) Contraction, Peak, Trough and Expansion
(c) Expansion, Trough, Contraction and Peak
(d) Expansion, Peak, Contraction and Trough
Ans. d
24. The Growth process resulting into broad base benefits and providing equality of opportunity to all is referred to as:
(a) Faster growth
(b) Inclusive grow
(c) Exclusive growth
(d) Sustained growth
Ans. b
25. Economic development process is concerned with:
(a) A rise in per capita income
(b) A rise in percentage GDP
(c) Changes in structure of economy/
(d) None of these
Ans. c
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26. Assertion (A): Consumption is high when saving is high.
Reason (R): Income is high when investment is high.
Codes:
(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, and (R) is not the correct explanation of (A).
(c) (A) is true but (R) is false.
(d) (A) is false but (R) is true.
Ans. d
27. Gross fiscal deficit – Interest payments = ?
(a) Revenue deficit
(b) Gross Primary deficit
(c) Capital deficit
(d) Budgetary deficit
Ans. b
28. 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:
(a) Both (A) and (R) are correct but (R) is not the correct explanation of (A).
(b) Both (a) and (R) are correct and (R) is the correct explanation of (A)
(c) (A) is correct but (R) is incorrect.
(d) (A) is incorrect but (R) is correct.
Ans. b
29. 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:
(a) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(b) Both (A) and (R) are correct, and explanation of (A).
(c) (A) is correct but (R) is incorrect.
(d) (A) is incorrect but (R) is correct. (R) is the correct
Ans. b
30. Which of the following is correct measurement of fiscal deficit in India?
(a) Excess of total revenue expenditure over total revenue receipts.
(b) Excess of total expenditure over total revenue receipts plus non-debt capital receipts.
(c) Excess of total expenditure over total receipts.
(d) Excess of total expenditure over total interest payments.
Ans. b
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31. Unbalanced regional growth in India is due to
(a) unequal budgetary support by Central Government to different States
(b) spatial distribution of industries
(c) inadequate development of infrastructure in some States
(d) All of the above
Ans. d
32. National income in India is estimated by:
(a) Planning Commission
(b) Finance commission
(c) Indian Statistical Institute
(d) Central Statistical organisation
Ans. d
33. The basis of determining dearness allowance to employees in India is:
(a) National Income
(b) Consumer Price Index
(c) Standard of Living
(d) Per Capita Income
Ans. b
34. The largest source of national income in India is:
(a) Service sector.
(b) Agriculture sector
(c) Industrial sector
(d) Trade sector
Ans. a
35. The difference between GDP and NDP is:
(a) Government revenue
(b) Net Indirect Tax (Indirect Tax subsidy)
(c) Consumption of fixed capital
(d) Net capital formation
Ans. c
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36…………….visualized the relationship between the rate of interest and level of consumption.
(a) Amaryta K. Sen
(b) Milton Friedman
(c) Iriving Fisher
(d) James Duesenberry
37……………. is the situation where the marginal productivity of agriculture labour is zero.
(a) Structural unemployment
(b) Seasonal unemployment
(c) Cyclical unemployment
(d) Disguised unemployment
Ans. b
38. Which of the following equation refers to ‘Marginal Cost?
(a) Total cost divided by quantity
(b) The change in total cost divided by the change in quantity
(c) Total cost minus total benefit for the last unit produced
(d) Total cost divided by total benefit for the last unit produced
Ans. c
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39. Choose the correct statement:
(a) Bulk of unemployment in India is in rural areas
(b) The disguised unemployment in agricultural sector is perennial
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Ans. c
40. According to the Indian economy which of the following persons are termed as living below the poverty line?
(a) They are entitled to a minimum prescribed food basket
(b) They get work for a prescribed minimum number of days in a year
(c) They belong to agricultural labourer household and the scheduled caste/tribe social group
(d) Their daily wages fall below the prescribed minimum wages
Ans. a
41. Which of the following Committee recommendations are related to the estimation of population of poor in India?
(a) Dutt Committee
(b) Chelliah Committee
(c) Chakravorty Committee
(d) Lakdawala Committee
Ans. d
42. Why do you think regional disparities in India are high and have been rising in recent years?
(a) There is persistent investment over time only in selected sectors
(b) Some areas are agro climatically less conductive to development
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Ans. c
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43. What does Absolute Poverty mean?
(a) Poverty in terms of absolute number of people
(b) Poverty in terms of the basic minimum calorie requirements
(c) Poverty in terms of the prevailing price level
(d) Poverty in terms of the absolute level of unemployment
Ans. b
44. Which out of the following can be beneficiaries of the “Mahatma Gandhi National Rural Employment Guarantee Act”?
(a) Adult members of only the scheduled Caste and scheduled tribe households
(b) Adult members of below poverty line (BPL) households
(c) Adult members of households of all backward communities
(d) Adult members of any household
Ans. d
45. What is Poverty Gap?
(a) The difference between poverty line and actual income levels of all those living below that line
(b) Gap between the rich and the poor
(c) Gap between developed nations and developing nations
(d) Gap in infrastructural facilities between developed and developing nations
Ans. a
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46. Why unemployment rate is high in a developing country?
(a) People switch over from one job to another
(b) Lack of effective demand
(c) Seasonal factors
(d) Lack of complementary factors of production
Ans. d
47. Which of the following was another name for Food for Work programme?
(a) Rural Landless Employment Guarantee Programme (RLEGP)
(b) National Rural Employment Programme (NREP)
(c) Jawahar Rozgar Yojana (JRY)
(d) Integrated Rural Development Programme (IRDP)
Ans. b
48. What does DWCRA stand for?
(a) Development and Welfare of Catchment Rural Areas
(b) Development of Women and Children in Rural Areas
(c) Direct Welfare of Children in Rural Areas
(d) All of the above
Ans. b
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49. What was the main objective of Antyodaya programme?
(a) Uplift the poor
(b) Uplift the urban poor
(c) Uplift the farmer
(d) Uplift the landless labour
Ans. a
50. What was the aim of the Minimum Needs Programme?
(a) Provide means for greater mechanization of agriculture
(b) Improve the living condition of the poor and also promote their education and health
(c) Provide necessary resources by way of refinance to primary lenders
(d) None of these
Ans. b
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