Economy through Questions : National Income

Economy through Questions : National Income objective questions


 1. In India, National Income is computed by which of the following? [UPPCS (Pre) 1995, 2006]

(A) Planning Commission

(B) Ministry of Finance

(C) Central Statistical Organisation

(D) Reserve Bank of India


2. Who among the following was the Chairman of National Committee appointed by Government of India

in 1949?     [UPPCS (Mains) 2015]

(A) C.R. Rao

(B) P.C. Mahalanobis

(C) V.K.R.V. Rao

(D) K.N. Raj


3. The national income of a country for a given period is equal to the

[UPSC (Pre) 2013]

(A) Total value of goods and services produced by the nationals

(B) Sum of total consumption and investment expenditure

(C) Sum of personal income of all individual

(D) Money value of final goods and services produced


4. Which among the following sectors contribute most to GDP of India?

[MPPCS (Pre) 2008]

(A) Primary sector

(B) Secondary sector

(C) Tertiary sector

(D) All three contribute equally


5. Which one of the following is the correct sequence in the decreasing order of contribution of different sectors to the Gross Domestic Product of India? [UPSC (Pre) 2008]

(A) Service, Industry, Agriculture

(B) Service, Agriculture, Industry

(C) Industry, Service, Agriculture

(D) Industry, Agriculture, Service


6. Indicate the vital change in the measurement of National Income

of India. [RAS (Pre) 2015]

(A) Base year has been changed from 2004-05 to 2011-12

(B) Calculation has been changed from factor cost to market prices

(C) Calculation has been changed from current prices to constant prices

(D) Both the base year and  calculation method have been changed


7. The Government of India has decided to revise the base for estimating the GDP from

[HPPSC (Mains) 2014]

(A) 2001-02 to 2010-11

(B) 2004-05 to 2013-14

(C) 2004-05 to 2011-12

(D) 2001-02 to 2011-12


8. Which of the following is a sign of economic growth? [RAS (Pre) 2013]

(A) An increase in national income at constant prices during a year

(B) A sustained increase in real per capita income

(C) An increase in national income at current prices overtime

(D) An increase in national income along with increase in

population


9. The most appropriate measure of a country’s economic growth is its

[UPSC (Pre) 2001]

(A) Gross Domestic Product

(B) Net Domestic Product

(C) Net National Product

(D) Per Capita Real Income


10. The Hindu rate of growth refers to the growth rate of

[UPPCS (Mains) 2004

UPPCS (Pre) 1996, 2006]

(A) Per Capita Income

(B) National Income

(C) Population

(D) Literacy


11. Which of the following causes have been mainly responsible for

the slow growth of real per capita income in India?

1. Rapid rise in population

2. Rapid rise in prices

3. Slow pace of progress in agriculture and industrial fields

4. Non-availability of foreign exchange

Choose the correct answer from the codes given below.

[UPPSC (Pre) 2001]

(A) Only 1 and 2 (B) Only 1 and 3

(C) Only 1 and 4 (D) All of these


12. The first measure of India’s National Income was made by

[UPPCS (Pre) 2007

UPSC (Mains) 2014]

(A) William Digby

(B) Dadabhai Naoroji

(C) M.G. Ranade

(D) V.K.R.V. Rao


13. The Per Capita Income in India was rupee 20 in 1867-68 was ascertained for the first time by [UPSC (Pre) 2000]

(A) M.G. Ranade

(B) Sir W. Hunter

(C) R.C. Dutta

(D) Dadabhai Naoroji


14. Which of the following statements is not true of the Indian Economy?

[UPPCS (Pre) 2010, 2012]

(A) Its share of the world population is only 16%, but its share of world GDP is 1.6%

(B) The share of service sector in India’s GDP is only 25%

(C) 58% of its working population is engaged in agriculture, but

the contribution of agriculture to the national income is 22%

(D) India occupies only 2.4% of th world’s geographical area


15. The growth rate of per capita income at current prices is higher

than that of per capita income at constant prices, because the later

takes into account the rate of          [Karnataka PSC (Pre) 2000]

(A) growth of population

(B) increase in price level

(C) growth of money supply

(D) increase in the wage rate


16. Human Development Index (HDI) comprises literacy rates, life

expectancy at birth and

[MPPCS (Pre) 2008]

(A) Gross Domestic Product per head in US Dollars

(B) Gross Domestic Product per head at real purchasing power

(C) Gross National Product in US Dollars

(D) National Income per head in US Dollars


17. National Income is the

[UPSC (Pre) 1997]

(A) Net National Product at market

price

(B) Net National Product at factor

cost

(C) Net Domestic Product at

market price

(D) Net Domestic Product at factor

cost


18. The term National Income represents [UPCS (Pre) 2001]

(A) Gross National Product at market price minus depreciation

(B) Gross National Product at market price minus depreciation plus net factor Income from abroad

(C) Gross National Product at market price minus depreciation and indirect tax plus subsidies

(D) Gross National Product at market price minus net factor income from abroad


19. In an open economy, the National Income (y) of the economy is (C, I, G, X, M, Y stand for Consumption, Investment, Government Expenditure, Total Exports, Total Imports and National Income, respectively).

Select the correct answer from the

following. [UPSC (Pre) 2000]

(A) Y = C + I + G + X

(B) Y = I + G – X + M

(C) Y = C + I + G + (X – M)

(D) Y = C + I – G + (X – M)


20. Which of the following is/are the component(s) of Gross Domestic Capital Formation (GDCF)?

1. Gross Domestic Saving

2. Net Capital Inflow

3. Direct Foreign Investment

Choose the correct answer from the codes given below.

[HPPSC (Pre) 2011]

Code

(A) Only 1      (B) Only 2

(C) Only 3      (D) Both 1 and 2


21. The most simple and popular method of measuring economic

development is to calculate the trend of Gross National Product

(GNP) at                      [HPPSC (Pre) 2014]

(A) Current prices

(B) Constant prices

(C) Both of the above

(D) None of the above


22. When National Income is calculated with reference to a base

year, it is called [HPPSC (Pre) 2014]

(A) Nominal national income

(B) Real national income

(C) Net national income

(D) Gross national income


23. Which among the following are the factors that determine the national income of a country?

[HPPSC (Pre) 2014]

(A) Quantity and Quality of factors

of produced

(B) The state of technical

knowledge

(C) Economic and Political stability

(D) All of the above


24. National Sample Survey Office (NSSO) was established in the year

[HPPSC (Mains) 2014]

(A) 1950 (B) 1951

(C) 1947 (D) 1948


25. Which of the following methods is not being used in the unemployment estimation by the NSSO in India?

[UPPCS (Mains) 2005, 2016]

(A) Current monthly status

(B) Current daily status

(C) Current weekly status

(D) Usual principal status


26. Economic Survey in India is published by [UPSC (Mains) 2016]

(A) Ministry of Finance

(B) Planning Commission

(C) Ministry of Commerce

(D) Indian Statistical Institute


27. One of the problems in calculating National Income in India is

                       [UKPSC (Pre) 2016

                     BPSC (Pre) 2018]

(A) Under-employment

(B) Inflation

(C) Low level of savings

(D) Non-monetised consumption


28. What was India’s estimated GDP growth rate for 2018-19 in the

Economic survey?

[HPPSC (Pre) 2018]

(A) 6.3% - 7.1%

(B) 7.2% - 7.5%

(C) 7% - 7.5%

(D) 7% - 7.2%




Answer Sheet

1. (C) 2. (B) 3. (D) 4. (C) 5. (A) 6. (D) 7. (C) 8. (B) 9. (D) 10. (B)

11. (B) 12. (B) 13. (D) 14. (B) 15. (B) 16. (D) 17. (B) 18. (C) 19. (C) 20. (D)21. (B) 22. (B) 23. (D) 24. (A) 25. (A) 26. (A) 27. (D) 28. (C)