Practice test

National income - Test Set 3

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

    National Income calculated at current price in India has shown a tendency to rise at a faster rate than national income at constant prices because—
    1. General price level has been rising fast
    2. India’s population has been rising
    3. Base year chosen is abnormal
    4. None of the above
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  2. Question 2

    Consider the following statements:
    1. India’s GDP is more than its GNP
    2. Net Factor Income from abroad (NFIA) is positive for India
    Which of the statements given above is/are correct?
    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
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  3. Question 3

    National Sample Survey Organisation (NSSO) was established in—
    1. 1947
    2. 1948
    3. 1949
    4. 1950
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  4. Question 4

    Which of the following are the main causes of slow rate of growth of per capita income in India?
    1. High capital output ratio
    2. High rate of growth of population
    3. High rate of capital formation
    4. High level of fiscal deficits
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  5. Question 5

    What base year is used to calculate per capita income in India?
    1. 2004–05
    2. 2011–12
    3. 2001–02
    4. 2014–15
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  6. Question 6

    How much does primary sector contribute to India’s GDP?
    1. 26%
    2. 20%
    3. 53%
    4. 16%
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  7. Question 7

    Which is not added in the calculation of national income of India?
    1. The value of goods and services
    2. The sold value of the old fridge
    3. Services rendered by the housewives
    4. Both (B) and (C)
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  8. Question 8

    Which one of the following is/are an indicator of financial health of a country?
    (i) GDP, (ii) PPP, (iii) FDI in a year.
    1. Only (i)
    2. Only (ii)
    3. Only (iii)
    4. All (i), (ii), (iii)
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  9. Question 9

    The contribution of agriculture and allied sectors to the Gross Domestic Product of India 2012–13 was
    1. 15%
    2. 14%
    3. 17%
    4. 20%
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  10. Question 10

    National Income of India is measured by—
    1. CSO
    2. Planning Commission
    3. Finance Ministry
    4. RBI
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  11. Question 11

    What is the fiscal year period in India?
    1. 1st April of a year to 31st March of the next upcoming year.
    2. 1st April to 31st December of the same year.
    3. 1st January to 31st December of the same year.
    4. 1st January of a year to 31st December of the next upcoming year.
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  12. Question 12

    Which of the following statements about transfer payments are correct?
    1. Transfer payments are made by the government to households.
    2. Pension, scholarship etc. are not a part of the transfer payments.
    3. Transfer payments are often used as a means of redistributing income within a society.
    1. 1, 2 and 3
    2. 2 and 3 only
    3. 1 and 2 only
    4. 1 and 3 only
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  13. Question 13

    Which of the following statements about GDP and Welfare are correct?
    1. GDP of a country is an indicator of the welfare of the people.
    2. If GDP is rising, welfare may not rise equally.
    3. GDP and Welfare both are not related to each other.

    1. Only 1 and 3
    2. 1, 2 and 3
    3. Only 2 and 3
    4. Only 1 and 2
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  14. Question 14

    Which of the following options represents the total income earned by individuals from all the sources before deduction of personal income taxes?
    1. Disposable income
    2. Personal income
    3. Gross income
    4. National income
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  15. Question 15

    Which of the following is the correct formula for calculating Net Indirect Taxes?
    1. Direct Taxes + Subsidies
    2. Indirect Taxes - Subsidies
    3. Indirect Taxes + Subsidies
    4. Direct Taxes - Subsidies
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  16. Question 16

    Which of the following is considered as a good indicator of economic growth?
    1. Steady increase in loan
    2. Steady increase in population
    3. Steady increase in the GDP
    4. Steady increase in international trade
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  17. Question 17

    Which of the following is NOT included in inventory investment when calculating national income?
    1. Change in sales during the year
    2. Change in stock of semi-finished goods
    3. Change in stock of raw material
    4. Change in stock of finished goods
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  18. Question 18

    Calculate the GDP at factor cost given in the following data.
    GDP at market price = 600 crores
    Consumption of fixed capital = 100 crores
    Indirect taxes = 200 crores
    Subsidies = 50 crores
    1. 850 crores
    2. 450 crores
    3. 950 crores
    4. 350 crores
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  19. Question 19

    Assessment of the country’s GDP growth, external balance and fiscal balance are presented in which part of the budget document?
    1. Macroeconomic Framework Statement
    2. Fiscal Policy Strategy Statement
    3. Appropriation bill
    4. Medium-term Fiscal Policy Statement
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  20. Question 20

    Which of the following is used to measure the total output of goods and services in an economy including depreciation during a specific period within a country?
    1. Net Domestic Product (NDP)
    2. Gross National Product (GNP)
    3. Net National Product (NNP)
    4. Gross Domestic Product (GDP)
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