Question 1

Pick the odd one out:&#10;A)real national income&#10;B)ni at constant price&#10;C)ni at current prices&#10;D)ni at base year price

Accepted Answer

Options A, B, and D all refer to measures of national income that are adjusted for inflation, either by using constant prices, base year prices, or some other method to reflect real values. Option C, "ni at current prices," refers to nominal national income, which is not adjusted for inflation and thus can give a misleading picture of economic growth if inflation rates are high.

Question 2

GDP deflator is given by:&#10;A)nominal ni/real ni&#10;B)nominal dgp/real gdp&#10;C)nominal gdp/ nominal gnp&#10;D)real gdp/real gnp

Accepted Answer

The GDP deflator is calculated by dividing nominal GDP by real GDP and then multiplying by 100. It measures the level of prices of all new, domestically produced, final goods and services in an economy.

Question 3

Value of output minus intermediate consumption is:&#10;A)depreciation&#10;B)value added&#10;C)net value added&#10;D)net exports

Accepted Answer

Value added is the difference between the output and the intermediate consumption. It represents the additional value created by a process, firm, or industry.

Question 4

National income is a --------variable.&#10;A)flow&#10;B)stock&#10;C)static&#10;D)dynamic

Accepted Answer

National income is a flow variable because it measures the value of goods and services produced in an economy over a specific period of time, typically a year. Unlike stock variables, which are measured at a particular point in time, flow variables are measured over a period of time.

Question 5

In India, National income is estimated at:&#10;A)current prices&#10;B)constant prices&#10;C)both current and constant prices&#10;D)none of these

Accepted Answer

In India, National income is estimated at both current and constant prices. Current prices refer to the prices that are prevailing in the market at the time of estimation, which can be influenced by inflation or deflation. Constant prices, on the other hand, are adjusted for inflation, allowing for a comparison of economic output over time by using the prices of a selected base year. This dual approach provides a more comprehensive understanding of the economy's performance.

Question 6

Which of the following is true:&#10;A)gdp is a geographical concept&#10;B)gdp is not a geographical concept&#10;C)gdp and gnp are same&#10;D)none of them

Accepted Answer

GDP is a geographical concept because it measures the economic activity within a specific geographical area, such as a country or a region.

Question 7

GNP measured in terms of current market prices is called:&#10;A)nominal gnp&#10;B)real gnp&#10;C)both&#10;D)none

Accepted Answer

Nominal GNP is measured in terms of current market prices, reflecting the current value of goods and services produced by a country. Real GNP, on the other hand, is adjusted for inflation and reflects the value of goods and services in constant prices.

Question 8

In India, the current base year is:&#10;A)1980-81&#10;B)1993-94&#10;C)1999-2000&#10;D)2004-05

Accepted Answer

The base year for India's GDP calculation was updated to 2004-05 to reflect more recent economic conditions and data.

Question 9

Which of the following doest not include in the group?&#10;A)gdp&#10;B)gnp&#10;C)gva&#10;D)ndp

Accepted Answer

The answer of Which of the following doest not include...

Question 10

The term &#34;Classical Economics&#34; was first used by:&#10;A)j.m. keynes&#10;B)adam smith&#10;C)karl marx&#10;D)david ricardo

Accepted Answer

The answer of The term &#34;Classical Economics&#34; was first used...

Question 11

Who is the leader of the Classical school?&#10;A)thomas robert malthus&#10;B)j.s. mill&#10;C)david ricardo&#10;D)adam smith.

Accepted Answer

The answer of Who is the leader of the Classical...

Question 12

The core of classical economists is:&#10;A)effective demand&#10;B)employment&#10;C)say's law of market&#10;D)socialism

Accepted Answer

The answer of The core of classical economists is:&#10;A)effective demand&#10;B)employment&#10;C)say's...

Question 13

'Law of Market' is attributed to:&#10;A)j.s. mill&#10;B)j.b. say&#10;C)alfred marshall&#10;D)a.c. pigou

Accepted Answer

The answer of 'Law of Market' is attributed to:&#10;A)j.s. mill&#10;B)j.b....

Question 14

The Classicals adopted ---------policy:&#10;A)governmental policy&#10;B)laissez-faire&#10;C)policy of restriction&#10;D)none of these

Accepted Answer

The answer of The Classicals adopted ---------policy:&#10;A)governmental policy&#10;B)laissez-faire&#10;C)policy of restriction&#10;D)none...

Question 15

According to Classicals, full employment is a:&#10;A)rare phenomenon&#10;B)normal phenomenon&#10;C)abnormal phenomenon&#10;D)none of these

Accepted Answer

The answer of According to Classicals, full employment is a:&#10;A)rare...

Question 16

According to the Classical economists, general over production is:&#10;A)possible&#10;B)impossible&#10;C)both&#10;D)none

Accepted Answer

The answer of According to the Classical economists, general over...

Question 17

According to the Classical economists, savings and investments are:&#10;A)always unequal&#10;B)always equal&#10;C)never equal&#10;D)sometimes equal

Accepted Answer

The answer of According to the Classical economists, savings and...

Question 18

Classical aggregate supply curve is:&#10;A)perfectly elastic&#10;B)perfectly inelastic&#10;C)more elastic&#10;D)unitary elastic

Accepted Answer

The answer of Classical aggregate supply curve is:&#10;A)perfectly elastic&#10;B)perfectly inelastic&#10;C)more...

Question 19

Pick the odd one from the following:&#10;A)law of market&#10;B)j.b. say&#10;C)full employment&#10;D)j.m. keynes

Accepted Answer

The answer of Pick the odd one from the following:&#10;A)law...

Question 20

According to the Classicals, investment is a function of:&#10;A)saving&#10;B)income&#10;C)employment&#10;D)rate of interest

Accepted Answer

The answer of According to the Classicals, investment is a...

Question 21

&#34;Supply creates its own demand&#34; is called:&#10;A)law of supply&#10;B)law of market&#10;C)law of demand&#10;D)law of elasticity

Accepted Answer

The answer of &#34;Supply creates its own demand&#34; is called:&#10;A)law...

Question 22

Under the classical system, the equilibrium will be at:&#10;A)under employment&#10;B)full employment&#10;C)voluntary employment&#10;D)disguised unemployment

Accepted Answer

The answer of Under the classical system, the equilibrium will...

Question 23

When savings exceeds the demand for savings, the rate of interest will:&#10;A)rise&#10;B)fall&#10;C)remain constant&#10;D)none of these

Accepted Answer

The answer of When savings exceeds the demand for savings,...

Question 24

Rate of interest will increase when the demand for saving is:&#10;A)less than its supply&#10;B)equal to its supply&#10;C)more than its supply&#10;D)less than or equal to its supply

Accepted Answer

The answer of Rate of interest will increase when the...

Deck 5: GDP, National Income, and Classical Economics