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National Income and Economic Growth 05
Question
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of 10
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Q1. National Income is based on the:
A.
total state revenue
B.
production of goods and services
C.
net profit and expenditure
D.
sum of all factions of income
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
B
National income is the total value of final goods and services produced by a country in a year.
Q2. Which of the following is equivalent to National Income?
A.
GDP at market price
B.
NDP at factor cost
C.
NNP at market price
D.
NNP at factor cost
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
D
National Income is officially defined as Net National Product at Factor Cost.
Q3. Gross National Product (GNP) is-
A.
Total country output
B.
Total output claimed by residents
C.
GDP plus investment
D.
Income minus expenditure
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
B
GNP includes GDP plus net factor income from residents' assets located abroad.
Q4. Who has given â€Big Push Theoryâ€?
A.
R. Rodan
B.
Jack Hamilton
C.
Amritya Sen
D.
Dr. Abhishek Mathur
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
A
Paul Rosenstein-Rodan proposed the Big Push theory for the rapid industrialization of developing nations.
Q5. It will be true to classify India as:
A.
food-deficit
B.
labour-surplus
C.
trade-surplus
D.
capital-surplus
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
B
India is characterized by a high population density and a large workforce, making it a labor-surplus economy.
Q6. Full form of GDP?
A.
Gross Domestic Product
B.
Global Domestic Ratio
C.
Gross Depository Revenue
D.
Global Depository Receipts
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
A
Gross Domestic Product is the total value of goods and services produced within a country's borders.
Q7. National income in India is compiled by
A.
Central Statistical Organisation
B.
Indian Statistical Institute
C.
Finance Commission
D.
NDC
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
A
CSO is the nodal agency for generating the national accounts of India.
Q8. In an open economy, the National Income formula is:
A.
C+I+G+X
B.
I+G+X+M
C.
C+I+G+(X-M)
D.
C+I-G+(X-M)
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
C
National Income (Y) = Consumption + Investment + Govt Spending + (Exports - Imports).
Q9. Net National Product (NNP) of a country is:
A.
GDP minus depreciation
B.
GDP plus net income from abroad
C.
GNP minus net income from abroad
D.
GNP minus depreciation allowances
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
D
NNP is calculated by subtracting depreciation (consumption of fixed capital) from the Gross National Product.
Q10. As development in economy takes place, the share of tertiary sector in National Income:
A.
first falls and then rises
B.
first rises and then falls
C.
keeps on increasing
D.
remains constant
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
C
A growing economy naturally shifts from an agrarian base toward a service-based economy.
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