NATIONAL INCOME QUIZ – 2

Which of the following constitutes the economic territory of a country with respect to GDP calculation?

1. Fishing vessels, oil and natural gas rigs operated by residents in the international waters.
2. Embassies, consulates and military establishment of the country located abroad.

iii. Ships and aircraft owned by residents of the country operating between two different countries.

Find the incorrect statements about the PMJJBY:

1. It is a government backed accident insurance scheme.

ii It has an annual premium of ₹12.

iii. In case of accidental death, the payment to the nominee will be ₹2 lakh and in case of Permanent Disability, the payment will be ₹1 lakh.

National Disposable Income of a country is equal to Net National Product at market prices plus.............?

1. Remittances from foreign countries.
2. Gifts from foreign citizens.

iii. Amount received in the form of aid.

1. Surplus of merchandise export.

Which of the following matches regarding management of liquidity is/are correct?

1. Short term (volatile): Repo Auctions
2. Medium term: Open Market Operations

iii. Long Term: Cash Reserve Ratio

Which of the following statements is/are correct regarding 'Effective Revenue Deficits?

1. 13th Finance Commission recommended it.
2. All the revenue expenditure done in the form of grants for creation of capital assets are included.

iii. Grants given under MNREGA to build capital assets are included.

Which of the following can't be included while estimating national income by expenditure method?

1. Expenditure on Intermediate goods
2. Transfer Payment

Which of the following statements is/are correct regarding Zero Based Budgeting (ZBB) method?

1. It begins with the budget from the last period.
2. Under this method, every activity needs to be justified.

iii. Railway has started 'zero based budgeting' approach in the financials of 2016-17.

Consider the following statements about the GDP Deflator.

1. GDP deflator is actually the ratio of real GDP to nominal GDP.
2. It indicates the change in the price level the current year is having with the base year.

iii. While calculating it, the volume of production is assumed constant.

Which of the statements given above is/are correct?

Consider the statements about Income and the Exchange Rate

1. When income increases, there will likely be a depreciation of the domestic currency.
2. If there is an increase in income abroad, the domestic currency will depreciate.

Which of the statements given above is/are correct?

Consider the following:

1. Sale and purchase of second-hand goods
2. Purchase of spares

Which of the above should be included in estimating National income by Expenditure method?

Which of the following statements is/are correct regarding National Rural Livelihoods Mission (NRLM)?

1. It works towards bringing at least one member from all poor families into the SHG network.
2. The NRLM Target Households are identified using the below poverty line (BPL) criteria.

iii. Under the mission women are considered as representatives of their households.

Given below are two statements, one labelled as  assertion (A) and the other labelled as Reason (R).

Assertion (A): India's Public sector helped in the development of a sound industrial base.

Reason (R): Public sector is under State control. The role of State in formulating appropriate policies and providing financial and other support has helped the public sector.

Consider the following statements

1. The ratio of the total increment in equilibrium value of final goods output to the initial increment in autonomous expenditure is called the output multiplier of the economy.
2. If the marginal propensity to save of the economy increases, the total value of savings in the economy will not increase, this is known as the Paradox of Thrift.

iii. The initial increment in autonomous expenditure to the total increment in equilibrium value of final goods output is called the output multiplier of the economy.

Which of the statements given above is/are correct?

Which of the following factors can be attributed to reasons of unemployment of India?

1. Slow growth in agricultural an industrial productivity.
2. Slow expansion of manufacture sector.

iii. Concentration of investment in capital goods industry

1. Launch of economic reforms

Select the correct answer using the code given below.

Consider the following statements regarding income calculation methods:

1. The expenditure method measures the aggregate value of spending that the firms receive for the final goods and services which they produce.
2. The method that measures the sum total of all factor payments of an economy is called income method.

iii. The method of measuring the aggregate value of final goods and services produced by all the firms is called product method.

Which of the statements given above is/are correct?

Which of the following statements given is/are correct regarding Gross Domestic Product accounting of a country?

1. The ownership status of goods and services play important role while accounting for GDP.
2. An oil company spills oil in Ocean causing the damage in tune of billions. This cost of damage is not accounted in GDP calculation.

iii. GDP accounts for the opportunity cost.

Which of the following shall not be included in the estimation of national income?

(i) Expenditure by a firm on payment of fees to a chartered accountant.

(ii) Payment of corporate tax by a firm.

(iii) Purchase of refrigerator by a firm for own use.

Which of the following statements is/are correct?

1. Gross Domestic Product may be more than or equal to the Net Domestic Product for the year.
2. Gross Domestic Product is always more than Gross National Product for the year.

Who out of the following have been associated with estimation of national income in pre-independent India?

1. Findlay Shirras
2. V.K.R.V. Rao Select the correct answer using the codes given below:

iii. Dadabhai Naoroji

1. RC desai

Consider the following statements about NNP:

1. NNP at factor cost is equal to the NNP at market prices with the Indirect taxes removed.
2. National Income (NI) is the NNP at market prices with the net indirect taxes removed.

iii. NNP at factor cost is the National income.

Which of the statements given above is/are correct?

Which of the following statements is/are correct?

1. Nominal Gross Domestic Product (GDP) reflects the changes in both prices and quantities of the goods and services produced in an economy.
2. Real GDP reflects only the changes in the quantities of the goods and services produced in an economy.

iii. GDP deflator reflects only the changes in prices of the goods and services produced in an economy.

Gross fiscal deficit of the State Governments is financed by:

1. Market Borrowings
2. Printing of Currency

iii. Loans from the Central Government

1. External Borrowings

Find the correct answer from the given code:

Codes:

Consider the following statements about aggregate consumption by the households.

1. It is the aggregate expenditure on goods and services produced by the firms in an economy.
2. It is less than the aggregate expenditure on goods and services produced by the firms in the economy.

Which of the statements given above is/are correct?

. ........is/are not an item/items of the Personal Income?

1. Net household Interest payments.
2. Corporate Tax.

iii. Direct cash benefits for LPG subsidy.

1. Personal Tax Payments.

Consider the statements related to the national income accounting:

1. An economy might have equal NDP and GDP
2. None of the developing economies had their NDPs and GDPs of the same values for any year.

iii. Few developing economies have been able to have their NDPs and GDPs of the same values but at the Purchasing Power Parity (PPP) only.

Which of the above is fare incorrect?

Consider following statements:

1. Credit creation varies inversely with Cash Reserve Ratio (CRR).
2. Credit creation varies positively with Cash Reserve Ratio (CRR).

iii. Bond price and interest rate are inversely related

1. Bond price and interest rate are positively related.

Which of the above statements is correct?