2. National Income in India National Income in India 

1. Afirm sells new shares worth 1000 direct to individuals. This transaction will cause:

(a) Gross National Product to rise by ₹ 1000

(b) Gross Domestic Product to rise by ₹ 1000

(c) National Income to rise by ₹ 1000

(d) No impact on Gross National Product

2. Which is not included in the private income arising in a

country?

(a) Factor income from net domestic product

(b) Net factor income from abroad

(c) Current transfers from Government

(d) Current Payments on foreign loans

3. In India, agriculture income is calculated by:

(a) Output method

(b) Input method

(c) Expenditure method

(d) Commodity flow method

4. The base year for computation of National Income in India is

(a) 1990-91

(b) 1993-94

(c) 1999 2000

(d) 2000 -01

5. In India, Hindu Rate of Growth is associated with which of the following ?

(a) Birth Rate

(b) Population

(c) Per Capita Income

(d) National Income

6. Which one of the following is NOT an example of economic overheads?

(a) Schools

(b) Sanitary Facilities

(c) Roads and Railways

(d) Coal Mines

7. Which one of the following is a development expenditure?

(a) Irrigation expenditure 

(b) Civil administration

(c) Debt services

(d) Grant-in-Aid

8. Gross Domestic Product (GDP) is defined as the value of all:

(a) goods produced in an economy in a year

(b) goods and services in an economy in a year

(c) final goods produced in an economy in a year

(d) final goods and services produced in an economy in a year

9. Depreciation is equal to:

(a) Gross National Product-Net National Product

(b) Net National Product-Gross National Product

(c) Gross National Product-Personal Income

(d) Personal Income-Personal Taxes

10. Which one of the following is NOT a method of measurement of National Income?

(a) Value Added Method

(c) Expenditure Method

(b) Income Method

(d) Investment Method

National Income in India 

11. Net National Product (NNP) of a country is:

(a) GDP minus depreciation allowances

(b) GDP plus net income from abroad

(c) GNP minus net income from abroad

(d) GNP minus depreciation allowances

12. National Income is based on the :

(a) total revenue of the State

(b) production of goods and services

(c) net profit earned and expenditure made by the State

(d) the sum of all factions of income

13. Which of the following is definitely a major indication of the State of the economy of a country ?

(a) Rate of GDP growth

(b) Rate of inflation

(c) Number of Banks in a country

(d) Stock of foodgrains in a country

(e) None of these

14. Which of the following can be called as a part of the Service Sector?

(a) Textile Mills

(b) Banking

(c) Coal Mines

(d) Agriculture

(e) None of these

15. Many times we read a term in financial newspapers GDP. What is the full form of the same?

(a) Gross Domestic Product

(b) Global Domestic Ratio

(c) Gross Depository Revenue

(d) Global Depository Receipts

(e) None of these

16. In terms of economics, the total value of the output (goods and services) produced and income received in a year by a domestic residents of a country put together is called :

(a) Net National Product

(b) Gross National Product

(c) Gross National Income 

(d) National Income

(e) None of these

17. Which of the following is the correct definition of the term National Income?

(a) National Income means the total amount of money Government earns only through direct tax collection every year

(b) It is the total value of all sorts of stocks held by a country at a particular point of time

(c) This is the measure of the volume of commodities and services turned out during a given period counted without duplication.

(d) All ‘a’, b’ and ‘c

(e) None of these

18. Which of the following is equivalent to National Income ?

(a) Gross Domestic Product at market price

(b) Net Domestic Product at factor cost

(c) Net National Product at market price

(d) Net National Product at factor cost

19. Assertion (A) : Per Capita Income of India does not give a complete picture of the economic growth of the country.

Reason (R) : Per Capita Income of a country is not independent of the size of its population.

Codes:

(a) Both A and Rare true and R is the correct explanation of A

(b) BothA and R are true but R is not a correct explanation of  A

(c) A is true but R is false

(d) A is false but R is true

National Income in India 

20. Which sector of the Indian Economy contributes largest to the Gross National Product ?

(a) Primary Sector

(b) Secondary Sector

(c) Tertiary Sector

(d) Public Sector

21. National Income estimates in India are prepared by :

(a) Planning Commission

(b) Reserve Bank of India

(c) Central Statistical Organisation

(d) Indian Statistical Institute

22. Per Capita Income of a country derived from :

(a) National Income

(b) Population

(c) National Income and Population both

(d) None of these

23 The main source of National Income in India is :

(a) Service Sector

(b) Agriculture

(c) Industrial Sector

(d) Trade Sector

24 Who coined the term ‘Hindu rate of growth’ for Indian

Economy?

(a) A. K. Sen

(b) Kirit S. Parikh

(c) Raj Krishna

(d) Montek Singh Ahluwalia

25. GDP at factor cost is:

(a) GDP minus indirect taxes plus subsidies

(b) GNP minus depreciation allowances

(c) NNP plus depreciation allowances

(d) GDP minus subsidies plus indirect taxes

26. Per Capita Income is obtained by dividing National Income by:

(a) Total population of the country

(b) Total working population

(c) Area of the country

(d) Volume of the capital used 

27. In India, service sector includes

I. Mining and Quarrying

II. Transport and Communication

III. Hotels

IV. Forestry and Fishing

Select your correct answer from the codes given below :

Codes:

(a) Only I and II

(b) Only II and III

(c) Only III and IV

(d) Only I and IV

28. In India, Tertiary Sector includes:

I. Trade and Transport

II. Finance and Real Estate

II. Forestry and Fishing

Choose the correct answer from the codes given below :

Codes

(a) I only

(b) I and II only

(c) II and III only

(d) II only 

29. Hindu Rate of Growth refers to the rate of growth of :

(a) GDP

(b) Population

(c) Food Grains

(d) Per Capita Income

National Income in India 

30. Who had estimated National Income in India first?

(a) Dadabhai Naoroji

(b) R. C. Dutt

(c) V.K. R. V. Rao

(d) D. R. Gadgil

31. The term ‘mixed economy’ denoted:

(a) existence of both rural and urban sectors

(b) existence of both private and public sectors

(c) existence of both heavy and small industries

(d) existence of both developed and underdeveloped sectors

32. The Indian Economy is characterised by :

1. Pre-dominance of Agriculture

2. Pre-dominance of Industry

3. Low Per Capita Income

4. Massive Unemployment

Select your answer from the code given below:

Codes:

(a) 1 and 2 only

(c) 2, 3 and 4 only

(b) 1, 2 and 3 only

(d) 1,3 and 4 only

33. In India, planned economy is based on:

(a) Gandhian System

(b) Socialist System

(c) Capitalist System

(d) Mixed Economy System

34. In an open economy, the National Income (Y) of the economy is :

(C= Consumption, I = Investment, G = Government expenditure, X = Total exports, M = Total import)

(a) Y = C + I + G + X

(b) Y = I + G – X + M

(c) Y = C+ I – G + (X- M) 

(d) Y=C+I- G+X- M

35. The new GDP series released by the CSO in February, 1999 is with reference to base price of :

(a) 1991 – 92 

(b) 1992 93 

(c) 1993-94 

(d) 1994 95

36. The Per Capita Income in India was 20 in 1867- 68 was ascertained for the first time by :

(a) Dadabhai Naoroji

(b) R. C. Dutta

(c) M. G. Ranade

(d) W. Hunter 

37. The growth rate of Per Capita Income at current prices is higher than that of Per Capita Income at constant prices, because the latter takes into account the rate of :

(a) growth of population

(b) increase in price level

(c) growth in money supply

(d) increase in the wage rate

38. The most appropriate measure of a country’s economic growth is its:

(a) Gross Domestic Product 

(b) Net Domestic Product

(c) Net National Product

(d) PerCapita Real Income

39. The term National Income represents

(a) Gross National Product at market price minus depreciation

(b) Gross National Product at market price minus depreciation plus net factor income from abroad

(c) Gross National Product at market price minus depreciations and indirect taxes plus subsidies

(d) Gross National Product at market prices minus net factor income from abroad

40. Consider the following States:

1. Maharashtra

2. Gujarat

3. Karnataka

4. Tamil Nadu

The descending order of these States with reference to their level of Per Capita Net State Domestic Product is :

(a) 1, 2, 3, 4 

(b) 2, 1, 3, 4 

(c) 4, 3, 2, 1 

(d) 3, 4, 2, 1

41. Hindu growth rate is related to-

(a) Money

(b) GDP

(c) Population

(d) GNP

(e) None of the above/More than one of the above

42. Which one of the following is the correct sequence in the decreasing order of contribution of different sources to the Gross Domestic Product of India ?

(a) Service – Industry – Agriculture

(b) Service – Agriculture – Industry

(c) Industry – Service – Agriculture

(d) Industry – Agriculture – Service

43. With reference to Indian economy, consider the following statements:

1. The Gross Domestic Product (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?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

44. Under which of the following circumstances may ‘capital gains arise?

1. When there is an increase in the sales of a product

2. When there is a natural increase in the value of the property owned

3. When you purchase a painting and there is a growth in its value due to increase in its popularity

Select the correct answer using the codes given below :

(a) 1 only

(b) 2 and 3 only

(c) 2 only

(d) 1, 2 and 3

45. In India, in the overall Index of Industrial Production, the Indices of Eight Core Industries have a combined weight of 37.90%. Which of the following are among those Eight

Core Industries ? 

1. Cement

2. Fertilisers

3. Natural gas

4. Refinery products

5. Textiles

Select the correct answer using the codes given below:

(a) 1 and 5 only

(b) 2, 3 and 4 only

(c) 1, 2, 3 and 4 only

(d) 1, 2, 3, 4 and 5

46. Which one among the following countries has the lowest GDP per capita ?

(a) China

(b) India

(c) Indonesia 

(d) Sri Lanka

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National Income in India 

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