1. Which of the following is not a method to calculate the Gross Domestic Product (GDP)?
A. Product method
B. Income law
C. Expenditure method
D. Diminishing cost method
ANSWER: D.Diminishing cost method
SOLUTION :There are 3 methods used for calculating national income namely; Income method, expenditure method, and Product method. The diminishing cost method is not a method to calculate national income.
2. The total amount of income from economic activities across the country in a year is called ……..
A. Disposable income
B. National income
C. Personal income
D. Private Income
ANSWER:B.National income
SOLUTION:
The total amount of income from economic activities across the country in a year is called national income. This income includes wages, interest, rent, and profit.
3. Which of the following statements is correct?
A. GDP at factor cost = Net Value Addition + Depreciation
B. GDP at factor cost = Net Value Addition – Depreciation
C. GDP at factor cost = Net price increase + indirect tax
D. GDP at factor cost = Net price increase + direct tax
ANSWER : A.GDP at factor cost = Net Value Addition + Depreciation
SOLUTION:
GDP at factor cost = Net Value Addition + Depreciation is correct. GDP at at factor cost is the sum of net value addition by all producers within the country.
4. What is the size of India’s economy at present on a nominal GDP basis?
A. US$ 2.93 trillion
B. US$ 11.30 trillion
C. US$ 3.5 trillion
D. None of the above
ANSWER: A. US$ 2.93 trillion
SOLUTION:
India’s economy is currently 2.93 trillion dollars on a nominal GDP basis. This figure is from the IMF 2019 report. Currently, India is the 5th largest economy in the world.
5. Which of the following institutions releases the “World Economic Outlook Report”?
A. World Bank
B. Federal Reserve Bank
C. International Monetary Fund
D. International Finance Corporation
ANSWER: C.International Monetary Fund
SOLUTION:
The International Monetary Fund releases the World Economic Outlook Report.
6. What is the base year for calculating India’s GDP?
A. 2004-05
B. 2010-11
C. 2011-12
D. 2014-15
ANSWER:C.2011-12
SOLUTION:
The base year for India’s GDP calculation is 2011-12. The central government wants to revise it 2017-18.
7. Who releases data of national income in India?
A. NSSO
B. CSO
C. NITI Aayog
D. None of the following
ANSWER:B.CSO
SOLUTION :
The GDP figures in India are released by the Central Statistics Office (CSO), which comes under the Ministry of Statistics and Program Implementation (MOSPI).
8. Which country is the fourth-largest economy in the world in terms of nominal GDP?
A. Germany
B. Britain
C. Japan
D. Russia
ANSWER:A.Germany
SOLUTION:
Germany is the fourth-largest economy in the world based on nominal GDP. size of the German economy is $ 3.86 trillion.
9. Which of the following is a part of the Gross National Product (GNP)?
A. Exports
B. Money earned by a resident abroad
C. Imports
D. All of the above
ANSWER: D.All of the above
SOLUTION:
GNP adds government expenditure, personal consumption expenditure, private domestic investments, net exports, and income earned by nationals overseas, and eliminates the income of foreign residents within the domestic economy.
10. The average income of a country is known as _________
A. Real National Income
B. Per Capita Income
C. Disposable Income
D. None of the above
ANSWER: B. Per Capita Income.
SOLUTION:
The average income of a country is called per capita income (PCI).