MCQOPTIONS
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MCQOPTIONS
This section includes 63 Mcqs, each offering curated multiple-choice questions to sharpen your Indian Economy knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
When 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» D. remains constant | |
| 2. |
A firm sell shares worth 1000 direct to individuals. This transaction will cause |
| A. | GNP to rise by 1000 |
| B. | GDP to rise by 1000 |
| C. | National income to rise by 1000 |
| D. | No impact on Gross National Product |
| Answer» E. | |
| 3. |
Which is not included in the private income arising in a country? |
| A. | Factor income from net domestic product |
| B. | Net factor income from abroad |
| C. | Current transfers from government |
| D. | Current payments on foreign loans |
| Answer» E. | |
| 4. |
One of the problems in calculating the national income in India correctly is |
| A. | under-employment |
| B. | inflation |
| C. | non-monetised consumption |
| D. | low savings |
| Answer» D. low savings | |
| 5. |
Personal disposable income means? |
| A. | Personal income -indirect taxes |
| B. | Personal income -direct taxes + fees + fines |
| C. | Personal income -direct taxes + fees + fines + social security contribution by employers |
| D. | None of these |
| Answer» D. None of these | |
| 6. |
As per the statistics on foreign debt at the end of March 2014, the ratio of long term debt and short term debt stands at- |
| A. | About 80 : 20 |
| B. | About 81.5 : 18.5 |
| C. | About 70 : 30 |
| D. | About 61.5 : 29.5 |
| Answer» C. About 70 : 30 | |
| 7. |
Who estimated national income in India first ? |
| A. | Dadabhai Naoroji |
| B. | R.C. Dutt |
| C. | V.K.R.V. Rao |
| D. | D.R. Gadgil |
| Answer» B. R.C. Dutt | |
| 8. |
Per capita Income of a century is derived from |
| A. | National Income |
| B. | Population |
| C. | National Income and population both |
| D. | None of these |
| Answer» D. None of these | |
| 9. |
The main source of National income in India is |
| A. | service sector |
| B. | agriculture |
| C. | industrial sector |
| D. | trade sector |
| Answer» B. agriculture | |
| 10. |
In terms of economics, the total value of the output (goods and services) produced and income received in a year by a domestic resident of a country put together is called |
| A. | Net National Product |
| B. | Gross National Product |
| C. | Gross National Income |
| D. | National income |
| Answer» C. Gross National Income | |
| 11. |
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» E. | |
| 12. |
Which sector of the Indian economy contributes largest to GNP? |
| A. | Primary sector |
| B. | Secondary sector |
| C. | Tertiary sector |
| D. | Public sector |
| Answer» D. Public sector | |
| 13. |
National Income estimates in India are prepared by |
| A. | Planning Commission |
| B. | Reserve Bank of India |
| C. | Central Statistical Organisation |
| D. | Indian Statistical Institute |
| Answer» D. Indian Statistical Institute | |
| 14. |
Which one of the following is a development expenditure ? |
| A. | Irrigation expenditure |
| B. | Administration |
| C. | Debt services |
| D. | Grant-in-aid |
| Answer» B. Administration | |
| 15. |
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. |
| Answer» E. | |
| 16. |
Net National Product (NNP) of a country is |
| A. | GDP minus depreciation allowances |
| B. | GDP plus net income from abroad |
| C. | GNP minus net income from abroad |
| D. | GNP minus depreciation allowances |
| Answer» E. | |
| 17. |
As the economy develops, the share of the tertiary sector in the GDP : |
| A. | Decreases |
| B. | Decreases then increases |
| C. | Increases |
| D. | Remains constant |
| Answer» D. Remains constant | |
| 18. |
The National Income of a country is |
| A. | the annual revenue of the government |
| B. | sum total of factor incomes |
| C. | surplus of PSU'S |
| D. | export minus import |
| Answer» C. surplus of PSU'S | |
| 19. |
Per capita income is obtained by dividing national income by |
| A. | total population of the country |
| B. | total working population |
| C. | area of the country |
| D. | volume of the capital used |
| Answer» B. total working population | |
| 20. |
As the economy develops, the share of the tertiary sector in th GDP |
| A. | Decreases |
| B. | Decreases then increases |
| C. | Increases |
| D. | Remains constant |
| Answer» D. Remains constant | |
| 21. |
The National Income of a country is |
| A. | The annual revenue of the Government |
| B. | Sum total of factor incomes |
| C. | Surplus of Public Sector Undertakings |
| D. | Export minus Import |
| Answer» C. Surplus of Public Sector Undertakings | |
| 22. |
Which one of the following is a development expenditure ? |
| A. | Irrigation expenditure |
| B. | Civil administration |
| C. | Debt services |
| D. | Grant-in-Aid |
| Answer» B. Civil administration | |
| 23. |
Which one of the following is NOT an example of economic overheads? |
| A. | Schools |
| B. | Sanitary Facilites |
| C. | Roads and Railways |
| D. | Coal Mines |
| Answer» E. | |
| 24. |
NNP is equal to |
| A. | GNP + Depreciation |
| B. | GNP + Export |
| C. | GNP - Depreciation |
| D. | GNP - Export |
| Answer» D. GNP - Export | |
| 25. |
Per Capita Income is obtained by dividing National Income by |
| A. | Total population of the country |
| B. | Total working population |
| C. | Area of the country |
| D. | Volume of the capital used |
| Answer» B. Total working population | |
| 26. |
Who coined the term 'Hindu rate of growth' for Indian Economy? |
| A. | A.K. Sen |
| B. | Kirit S. Parikh |
| C. | Raj Krishna |
| D. | Montek Singh Ahluwalia |
| Answer» D. Montek Singh Ahluwalia | |
| 27. |
Who had estimated National Income in India first? |
| A. | Dadabhai Naoroji |
| B. | R.C. Dutt |
| C. | V.K.R.V. Rao |
| D. | D.R. Gadgil |
| Answer» B. R.C. Dutt | |
| 28. |
In an open economy, the National Income of the economy is(C = Consumption, I = Investment, G = Government expenditure, X = Total exports, M = Total import) |
| 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 |
| Answer» D. Y = C + I - G + X - M | |
| 29. |
The base year for computation of National Income in India is |
| A. | 1990-91 |
| B. | 1993-94 |
| C. | 1999-2000 |
| D. | 2000-01 |
| Answer» C. 1999-2000 | |
| 30. |
Depreciation is equal to |
| A. | Gross National Product-Net National Product |
| B. | Net National Product-Gross National Product |
| C. | Gross National Product-Personal Income |
| D. | Personal Income-Personal Taxes |
| Answer» B. Net National Product-Gross National Product | |
| 31. |
National Income estimates in India are prepared by |
| A. | Planning Commiossion |
| B. | Reserve Bank of India |
| C. | Central Statistical Ogranisation |
| D. | Indian Statistical Institute |
| Answer» D. Indian Statistical Institute | |
| 32. |
Which sector of Indian Economy contributes largest to the Gross National Product? |
| A. | Primary Sector |
| B. | Secondary Sector |
| C. | Tertiary Sector |
| D. | Public Sector |
| Answer» D. Public Sector | |
| 33. |
GDP at factor cost is |
| A. | GDP minus indirect taxes plus subsidies |
| B. | GNP minus depreciation allowances |
| C. | NNP plus depreciation allowances |
| D. | GDP minus subsidies plus indirect taxes |
| Answer» B. GNP minus depreciation allowances | |
| 34. |
Per Capita Income of country is derived from |
| A. | National Income |
| B. | Population |
| C. | National Income and Population both |
| D. | None of these |
| Answer» D. None of these | |
| 35. |
The Main source of National Income in India is |
| A. | Service Sector |
| B. | Agriculture |
| C. | Industrial Sector |
| D. | Trade Sector |
| Answer» B. Agriculture | |
| 36. |
Hindu Rate of growth regers to the rate of growth of |
| A. | GDP |
| B. | Population |
| C. | Foodgrains |
| D. | Per Capita Income |
| Answer» B. Population | |
| 37. |
In India, Hindu Rate of Growth is associated with which of the following? |
| A. | Birth Rate |
| B. | Population |
| C. | Per Capita Income |
| D. | National Income |
| Answer» E. | |
| 38. |
Which one among the following countries has the lowest GDP per capita? |
| A. | China |
| B. | India |
| C. | Indonesia |
| D. | Sri Lanka |
| Answer» C. Indonesia | |
| 39. |
With reference to Indian economy, consider the following statements1. The Gross Domestic Product (GDP) has increased by four times in the last 10 years2. The percentage share of Public sector in GDP has declined in the last 10 yearsWhich of the statements given above is/are correct? |
| A. | 1 only |
| B. | 2 only |
| C. | Both 1 and 2 |
| D. | Neither 1 nor 2 |
| Answer» E. | |
| 40. |
Which of the following is the correct definition of the term National Income? |
| A. | National Income Means the total amount of money Government earns only through direct tax collections every year |
| B. | It is the total value of all sorts of stocks held by a country at a particular point of time |
| C. | This is the measure of the volume of commodities and services turned out during a given period counted without duplication. |
| D. | All 'a', 'b' and 'c' |
| E. | None of the above |
| Answer» D. All 'a', 'b' and 'c' | |
| 41. |
Assertion (A) : Per Capita Income of India dos not give a complete picture of the economic growth of the county. Reason (R) : Per Capita Income of a country is not Independent of the size of its populationCodes: |
| A. | Both A and R are true and R is the correct explanation of A |
| B. | Both A and R are true but R is not a correct explanation of A |
| C. | A is true But R is false |
| D. | A is false but R is true |
| Answer» C. A is true But R is false | |
| 42. |
National income figure are |
| A. | very exact |
| B. | partically exact |
| C. | only estimates |
| D. | wrong |
| Answer» C. only estimates | |
| 43. |
Gross Domestic Produced (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 |
| Answer» E. | |
| 44. |
Many a times we read a term in financial newspapers GDP. What is the full from of the same? |
| A. | Gross Domestic Product |
| B. | Gross Depository Revenue |
| C. | Global Domestic Ratio |
| D. | Global Depository Receipts |
| E. | None of the above |
| Answer» B. Gross Depository Revenue | |
| 45. |
In India, Tertiary Sector includes I. Trade and TransportII. Finance and Real EstateIII. Forestry and FishingChoose the correct answer from the codes given belowCodes |
| A. | I Only |
| B. | I and II only |
| C. | II and III only |
| D. | III only |
| Answer» C. II and III only | |
| 46. |
In India, service sector includesI . Mining and QuarryingII. Transport and CommunicationIII. HotelsIV . Forestry and FishingSelect your correct answer from the codes given belowCodes |
| A. | Only I and II |
| B. | Only II and III |
| C. | Only III and IV |
| D. | Only I and IV |
| Answer» C. Only III and IV | |
| 47. |
Which one of the following is the correct sequence in the decreasing order of contribution of different sources to the Gross Domestic Product of India? |
| A. | Service-Industry-Agriculture |
| B. | Service-Agriculture-Industry |
| C. | Industry-Service-Agriculture |
| D. | Industry-Agriculture-Service |
| Answer» B. Service-Agriculture-Industry | |
| 48. |
The term National Income represents |
| 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 depreciations and indirect taxes plus subsidies |
| D. | Gross National Product at market prices minus net factors income from abroad |
| Answer» D. Gross National Product at market prices minus net factors income from abroad | |
| 49. |
Consider the following States1. Maharashtra2. Gujarat3. Karnataka4. Tamil NaduThe descending order of these States with reference to their level of Per Capita Net State Domestic Product is |
| A. | 1, 2, 3 ,4 |
| B. | 2, 1, 3, 4 |
| C. | 4, 3, 2, 1 |
| D. | 3, 4, 2, 1 |
| Answer» B. 2, 1, 3, 4 | |
| 50. |
A firm sells new shares worth 1000 direct to individuals. This transaction will cause |
| A. | Gross National Product to rise by 1000 |
| B. | Gross Domestic Product to rise by 1000 |
| C. | National Income to rise by 1000 |
| D. | No impact on Gross National Product |
| Answer» E. | |