Practice test

National income - Test Set 6

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

    Increase in absolute and per capita GNP do not connote a higher level of economic development, if—
    1. Industrial output fails to keep pace with agricultural output
    2. Agricultural output fails to keep pace with industrial output
    3. Poverty and unemployment increase
    4. Imports grow faster than exports
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  2. Question 2

    With reference to India economy consider the following statements:
    1. The rate of growth of Real GDP has steadily increased in the last decade
    2. The GDP at Market Price (in rupees) has steadily increased in the last decade
    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
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  3. Question 3

    The NI of a country for a given period is equal to the—
    1. Total value of goods and services produced by the nationals
    2. Sum of total consumption and investment expenditure
    3. Sum of personal income of all individuals
    4. Money value of final goods and service produced
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  4. Question 4

    In the context of Indian economy, consider the following statements:
    1. The growth rate of GDP has steadily increased in the last five years.
    2. The growth rate of PCI has steadily increased in the last five years.
    Which of the following 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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  5. Question 5

    With reference to India economy, consider the following statements:
    1. The GDP has increased by four times in the last 10 years.
    2. The percentage share of Public Sector in GDP has declined in the last 10 years.
    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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  6. Question 6

    One of the problems in calculating National Income in India is—
    1. Under employment
    2. Inflation
    3. Low level of savings
    4. Non-monetised consumption
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  7. Question 7

    When National Income is calculated with reference to a base year, it is called.
    1. Nominal National Income
    2. Real National Income
    3. Net National Income
    4. Gross National Income
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  8. Question 8

    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.
    1. Y = C + I + G + X
    2. Y = I + G - X + M
    3. Y = C + I + G + (X - M)
    4. Y = C + I - G + (X - M)
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  9. Question 9

    The first measure of India’s National Income was made by—
    1. William Digby
    2. Dadabhai Naoroji
    3. M G Ranade
    4. V K R V Rao
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  10. Question 10

    National Income is the—
    1. Net National Product at market Price
    2. Net National Product at factor cost
    3. Net Domestic Product at market price
    4. Net Domestic Product at factor cost
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  11. Question 11

    Gross National Product–Depreciation Allowance = ?
    1. Personal Income
    2. Net National Product
    3. Per Capita Income
    4. Gross Domestic Product
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  12. Question 12

    Nominal National Income means—
    1. National Income at market prices
    2. National Income at factor prices
    3. National Income at current prices
    4. National Income at constant prices
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  13. Question 13

    Who was the chairman of Indian National Income committee?
    1. P C Mahalanobis
    2. A M Khasro
    3. Prof. Shenoi
    4. V K R V Rao
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  14. Question 14

    In India, National Income is estimated mainly through—
    1. Product Method
    2. Income Method
    3. Export Import Method
    4. Both (A) and (B)
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  15. Question 15

    Real National Income means—
    1. National Income at current prices
    2. National Income at constant prices
    3. National Income at market prices
    4. National Income at factor prices
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  16. Question 16

    Which of the following item(s) is/are not included in National Income?
    1. Earnings of housewives
    2. Sale of land
    3. Unrequited returns from abroad
    4. All of the above
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  17. Question 17

    Which of the following item(s) is/are included in National Income?
    1. Tax revenue
    2. Replacement level of investment
    3. Public Investment and induced level of investment
    4. All of the above
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  18. Question 18

    Actual standard of living of an economy can be assessed by—
    1. Real Per Capita Income
    2. GDP
    3. GNP
    4. Disposable Personal Income
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  19. Question 19

    GDP Deflator implies—
    1. Actual GDP of a country in a particular time period
    2. Normal GDP of a country in a particular time period
    3. The ratio of nominal GDP and actual GDP in a particular time period of a country
    4. None of the above
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  20. Question 20

    Green GDP means—
    1. GDP minus social cost caused by environmental degradation
    2. GDP plus social cost caused by environmental degradation
    3. GDP comes from industrial products plus social cost
    4. None of the above
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