Deck 2: Understanding National Income, GDP, and Economic Sectors in India

Question 1

Consider the following statements and identify the right ones.
i. National income is the monetary value of all final goods and services produced.
ii. Depreciation is deducted from gross value to get the net value

A)I only
B)ii only
C)both
D)none

Answer 1

both

Question 2

Which of the following is considered as financial year in India?

A)April 1 to March 31
B)January 1 to December 31
C)March 1 to April 30
D)March 16 to March 15

Answer 2

April 1 to March 31

Question 3

Which is not added in the calculation of national income of India?

A)The value of goods and services
B)The sold value of the old fridge
C)Services rendered by the housewives
D)Both [B] & [C]

Answer 3

Both [B] & [C]

Question 4

Which sector contributes the most to India's economy in terms of GDP?

A)Service sector
B)Manufacturing sector
C)Agricultural sector
D)Small scale industries

Question 5

Which Ministry is responsible for calculating GDP in India?

A)Ministry of Finance
B)Ministry of Commerce and Industry
C)Ministry of Central Statistical and Program Implementation (Central statistical organization)
D)Ministry of consumer Affairs

Question 6

Which statement is true?

A)National Expenditure = National income
B)National Expenditure = National income + National savings
C)National Expenditure = National income + Taxes
D)National Expenditure = National income - Taxes

Question 7

Which statement is true?

A)National Income = National expenditure - indirect taxes
B)NI = GNP - NNP
C)NI = NNP - indirect taxes (because, from NNP if we minus the indirect taxes it will give us NNP@FC which is equal to NI)
D)NI = PI

Question 8

There are methods of measuring national income:

A)5
B)2
C)1
D)3

Question 9

If we compare GDP and GNP, then:

A)GNP = GDP - net income from abroad
B)GNP = GDP + net income from abroad (R-P)……. GDP+(R-P)
C)GNP = NNP - net income from abroad
D)GNP = NNP + net income from abroad

Question 10

Select the correct statement:

A)Transfer payment are included in national income
B)Depreciation allowance is a part of GNP
C)Taxes are not included in NNP
D)GDP means Gross Direct Production

Question 11

Which is the largest figure:

A)NNP
B)GNP
C)PI (Disposable Personal Income)
D)PI (personal income)

Question 12

Which is a flow concept:

A)Number of my shirts
B)My total wealth
C)My monthly income
D)Money supply

Question 13

To avoid double counting when GDP is estimated, economists:

A)Use GDP deflator
B)Calculate value added at each stage of production
C)Use retail prices
D)Use price of only intermediate goods

Question 14

Personal income includes:

A)Direct taxes
B)Indirect taxes
C)Depreciation
D)None of these

Question 15

Personal income includes:

A)Transfer payments
B)Indirect taxes
C)Depreciation
D)All of the above

Question 16

If savings exceed investment then:

A)National income rises
B)National income falls
C)National income is not affected
D)None of the above

Question 17

This statement is true

A)NI = rent + interest + wages + profit
B)NI = rent + interest + wages + taxes
C)NI = Govt. expenditure + interest + wages + profit
D)NI = rent + interest + wages + pensions

Question 18

Which Ministry is responsible for calculating GDP in India?

A)Ministry of Finance
B)Ministry of Commerce and Industry
C)Ministry of Central Statistical and Program Implementation
D)Ministry of consumer Affairs

Question 19

An Indian farmer produces wheat without incurring cost of inputs all sells for Rs. 1,000 to a miller who grinds wheat into flour and sells for Rs 1,200 to baker. The baker sells bread to consumers for Rs. 1,600. Total added is Rs.

A)1,600
B)2,200
C)1,000
D)1,400

Question 20

How much does the primary sector contribute to India's GDP?

A)26%
B)20%
C)53%
D)14%

Question 21

Which sector contributes the most to India's economy?

A)Service sector
B)Manufacturing sector
C)Agricultural sector
D)Small scale industries

Question 22

If the contribution of the agricultural sector is decreasing in a country's economy, then what conclusion can be drawn?

A)The country is growing in the direction of being a developed nation
B)The country is moving towards becoming developing nation
C)The country is moving towards becoming less developed nation
D)The economic growth rate of the country has stopped

Question 23

Which is not added in the calculation of national income of India?

A)The value of goods and services
B)The sold value of the old fridge
C)Services rendered by the housewives
D)Both b & c

Question 24

Output means. ……………unless stated otherwise

A)Gross output at MP (GDPmp)
B)Net output at MP
C)Gross output at FC
D)None

Question 25

Which of the following is not a component of domestic income?

A)Operating surplus
B)Compensation of employees
C)Net factor income from abroad
D)Mixed income