National Income of India MCQ
Indian Economy MCQ
Chapter 2
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| National Income - MCQ |
National Income is an uncertain term which is used interchangeably with national dividend, national output and national expenditure.
In this section, we are providing MCQs and Answers on National Income of India which is very useful for your upcoming exams.
MCQ on Indian Economy | MCQ on National Income | National Income of India MCQ | Important Questions on National Income | Indian Economy MCQ
Chapter 2 - National Income of India MCQ | Indian Economy
1. The average income of the country is
Per capita income is calculated by dividing the total national income by the total population of the year.
2. The financial year in India is
National income is calculated for a specific period of time. In India, it is calculated for April 1 to March 31.
3. What is output per unit of input of labor known as?
Productivity, in economics, measures output per unit of input, such as labor, capital, or any other resource – and is typically calculated for the economy as a whole, as a ratio of GDP to hours worked.
4. The net value of GDP after deducting depreciation from GDP is
After deducting the depreciation charges of plant and machinery from GDP, we get net value of GDP which is called NDP.
5. Which among the following is not a part of factor of production?
The Factors of production are the inputs available to supply goods and services in an economy.
They are Land, Labour, Capital and Enterprise.
6. Which organization calculates GDP in India?
The Central Statistics Office (CSO), under the Ministry of Statistics and Program Implementation(MoSPI), is the responsible authority for macroeconomic data gathering and statistical record keeping. They publish the GDP.
7. When depreciation is deducted from GNP, the net value is
NNP is the net value of GNP after the depreciation of plant and machinery is deducted..
8. Which of the following are correct for Real GDP?
Real GDP refers to current year production of goods and services valued at base year prices. Real GDP is corrected for inflation.
9. Which of the following are part of National income?
In the calculation of national income, the value of goods and services produced in a year is added. While the value of old sold goods and the services of the housewife is not added.
10. The value of NNP at consumer point is
NNP at market price is calculated by deducting indirect taxes and subsidies from NNP at factor cost.
11. The value of national income adjusted for inflation is called
It is adjusted for inflation that is calculated from a reference point which is a base year.
12. Which of the following are part of Gross National Product(GNP)?
Gross National Product is the value of all finished goods and services owned by a country’s residents over a period of time.
GNP: GDP+ NR (Net receipts from abroad or inflows from abroad) – NP (Net payment outflow to foreign assets).
13. Which of the following is not a method of calculating National Income?
The 3 methods used for calculating the national income are :
Income method
Output method or Product method
Expenditure method.
14. What is the difference between the Gross value added and Net value-added ?
Net value added = Gross value added – depreciation.
15. Who presents the economic survey every year?
The Economic Survey of India is the flagship annual document of the Finance Ministry. The Department of economic affairs, Ministry of Finance presents the Survey in the parliament every year, just before the Union Budget. It is prepared under the guidance of the Chief economic advisor of India. This document is presented to both Houses of Parliament during the Budget session.
16. What does free market in an economy imply?
In a free market economy, the law of supply and demand, rather than a central government, regulates production and labor. Companies sell goods and services at the highest price consumers are willing to pay while workers earn the highest wages companies are willing to pay for their service.
17. What does a good with positive externalities known as?
Merit goods are the goods that are provided generally by the government to certain sections of society. Unlike in the case of pure public goods, merit goods are not provided to the entire society; rather they are given to certain targeted people. They Have positive externalities Ex: health, education.
18. Real National income increases in which of the following circumstances?
As the calculation of national income is the total value of all goods and services in an economy the real increase happens when the output production increases. The rate change won’t affect because while calculating real national income we take into account the prices of base year. So even the inflation effect is also removed.
19. The new GDP series calculates GDP based on which price?
Market price.
20. What does decreasing contribution of agriculture to GDP signifies?
The movement from an agrarian-based economy to a manufacturing and the service-based economy shows that, a country is moving from a less developed phase to a developing and developed phase.
21. What does decreasing contribution of agriculture to GDP signifies?
The movement from an agrarian-based economy to a manufacturing and the service-based economy shows that, a country is moving from a less developed phase to a developing and developed phase.
22. Which of the following factors don’t affect the demand for a commodity?
Demand for a commodity is the quantity of that commodity which an individual (or buyer) is willing to purchase at different prices within a given period of time. Market demand means the total quantity of a commodity that all its buyers are willing to purchase at different prices over a given period of time. Demand for a commodity depends on a number of factors. The important factors that affect an individual demand for a commodity are: (i) price of the commodity, (ii) income of the individual consumer, (iii) price of related goods and (iv) tastes and preferences of the individual.
23. Who had estimated National Incime in India first
Dadabhai Naoroji.
24. Which state of India currently has the highest Per Capita Income?
Goa.
25. Who wrote a book describing the theory of economic drain during British rule
Dadabhai Naoraji.
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