Practice test

National income - Test Set 1

Review 20 exam-focused questions with detailed explanations, then start the interactive test when you are ready.

20 questions

Questions and explanations

  1. Question 1

    What is the nominal GDP if the real GDP is 500 and price index is 150?
    1. 650
    2. 450
    3. 750
    4. 350
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  2. Question 2

    Exports of changes by India is a part of ______ method of measurement of its national income.
    1. circular income
    2. value added
    3. expenditure
    4. income
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  3. Question 3

    In India, the financial year runs from ______ to ______.
    1. April 1, March 31
    2. February 1, January 31
    3. July 1, June 31
    4. January 1, December 31
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  4. Question 4

    Which of the following aggregates best describes the National Income?
    1. GDP at MP
    2. NNP at FC
    3. NDP at MP
    4. GNP at FC
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  5. Question 5

    While computing Net Economic Welfare (NEW), which of the following items is subtracted from GNP?
    1. Value of leisure time
    2. Adjustments for congestion of urban life
    3. Do-it-yourself activities
    4. The underground economy
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  6. Question 6

    Which of the following statements is/are FALSE?
    I. The impact of externality is always positive.
    II. Real national income means national income at constant prices.
    1. Only II
    2. Only I
    3. Neither I nor II
    4. Both I and II
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  7. Question 7

    In which year did the Central Statistical Office adopt the GVA concept in India?
    1. 2012
    2. 2015
    3. 1993
    4. 2010
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  8. Question 8

    GDP deflator = ______.
    1. (Nominal GDP × Real GDP) × 100
    2. (Nominal GDP ÷ Real GDP) × 100
    3. (Nominal GDP - Real GDP) × 100
    4. (Nominal GDP / Real GDP) × 100
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  9. Question 9

    In national income accounting, GVA stands for ______.
    1. General vesting added
    2. General vested account
    3. Gross value accounting
    4. Gross value added
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  10. Question 10

    GDP calculated at some constant set of prices is called ______.
    1. Real GDP
    2. Domestic GDP
    3. Current GDP
    4. Nominal GDP
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  11. Question 11

    Which of the following is correct regarding the National income?
    I. Intermediate goods are not included in the calculation of national income.
    II.Final goods are included in the calculation of national income.
    1. Only II
    2. Neither I nor II
    3. Only I
    4. Both I and II
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  12. Question 12

    If there are N firms in the economy, each assigned with a serial number from 1 to N, then as per the product method, GDP can be written as ______.
    1. GVA (1) + GVA (2) ...... + GVA (N)
    2. NVA (1) + NVA (2) ...... + NVA (N)
    3. GVA (1) + GVA (2) ...... + GVA (N)
    4. GVA (1) + GVA (2) + GVA (3) + GVA (4) ......
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  13. Question 13

    Which of the following is NOT one of the methods of national income estimation?
    1. Banking method
    2. Expenditure method
    3. Product method
    4. Income method
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  14. Question 14

    The value of GDP at the current prevailing prices is called ______.
    1. nominal GDP
    2. current GDP
    3. domestic GDP
    4. real GDP
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  15. Question 15

    The subject of the Study of Macroeconomics is based on which principle?
    1. The principle of National Income
    2. The principle of Consumer
    3. The principle of Producer
    4. The principle of Investment
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  16. Question 16

    Which of the following organisations of the Government of India has been reporting the GDP at factor cost and at market prices?
    1. Reserve Bank of India
    2. National Sample Survey Organisation
    3. National Statistics Office
    4. NITI Aayog
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  17. Question 17

    Who among the following headed the National Income Committee?
    1. PC Mahalanobis
    2. VKRV Rao
    3. DR Gadgil
    4. BR Ambedkar
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  18. Question 18

    In 1950-51, what percentage of GDP of India was contributed by the industrial sector?
    1. 22%
    2. 28%
    3. 13%
    4. 16%
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  19. Question 19

    GDP that takes into account the costs in terms of environmental pollution and exploitation of natural resources is called ______.
    1. White GDP
    2. Green GDP
    3. Brown GDP
    4. Blue GDP
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  20. Question 20

    NDP at FC = GDP at FC minus ______.
    1. Depreciation
    2. Indirect taxes
    3. Net factor income from abroad
    4. subsidies
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