Economics Indian Economy MCQs - CSEET Part 1

1. GNP at factor cost minus depreciation is equal to .

(a) NNP at factor cost

(b) NDP at factor cost

(c) GDP at factor cost

(d) NNP at market price.

2. As per the Value Added Method of measuring national income identify which of the

following item is excluded?

(a) Brokerage and Commission earned by dealers of second hand goods

(b) Sale of second hand machines

(c) Production for Self - Consumption

(d) Imputed rent of owner occupied houses.

3. Net Domestic Product (NDP) = Gross Domestic Product (GDP) minus

(a) NFIA

(b) IT

(c) Depreciation

(d) Transfer payment.

4. GDP at Factor Cost = GDP at Market Price minus indirect taxes plus

(a) income from abroad

(b) subsidies

(c) transfer payments

(d) operating surplus

5. The difference between the GDPMP and GNPMP is

(a) net income

(b) subsidies

(c) net factor income from abroad

(d) depreciation.

6. GDP at factor cost = GDP at market price-(minus) +(plus) subsidies

(a) direct taxes

(b) indirect taxes

(c) income from abroad

(d) foreign debts.

7. National Income differs from Net National Product at market price by the amount of

(a) Current transfers from the rest of the world

(b) Net indirect taxes

(c) National debt interest

(d) Subsidies

8. Value added method is used to measure ..............

(a) national income

(b) domestic income

(c) gross income

(d) per capita income

9. Product method of calculating national income is also known as

(a) Income method

(b) Value added method

(c) Expenditure method

(d) None of the above.

10. Which of the following statement is incorrect?

(a) GNP at market price-depreciation = NNP at market price

(b) GNP at market price-net income from abroad = GDP at market price

(c) GNP at market price-net indirect takes = GNP at factor cost

(d) None of the above

11. GDP at market price is:

(a) GNP at market price - depreciation

(b) GNP at market price - net income from abroad

(c) GNP at market price - net indirect taxes

(d) GNP at factor cost - depreciation.

12. National dividend is sum of the money value of all ................. goods & services produced

by the residents of a country during a period of one year including income derived from

abroad.

(a) producer’s

(b) consumer’s

(c) intermediate

(d) final.

13. Which one of the following is correct?

(a) GNPFC = GNPMP + Subsidies

(b) GNPFC = GNPMP + Subsidies - indirect taxes

(c) GNPFC = GNPMP - Subsidies + indirect taxes

(d) GNPFC = GNPMP + Subsidies + indirect taxes.

14. In country ‘X’, if NNP at market price remained constant and depreciation increased

compared to the previous year, then GNP at market prices will

(a) increase

(b) decrease

(c) increase by an amount equal to rise in depreciation

(d) decrease by an amount equal to rise in depreciation

15. GNP at market price minus ................. is equal to GDP at market price.

(a) depreciation

(b) direct taxes

(c) subsidies

(d) net income from abroad

16. What is Net National Product?

(a) The money value of final goods and services produced annually in the economy.

(b) The money value of annual service generation in the economy.

(c) The money value of tangible goods produced annually to the economy.

(d) The money value of tangible goods available in the economy.

17. Per Capita national income means:

(a) NNP divided by population

(b) Total capital divided by population

(c) Population divided by NNP

(d) None of the above.

18. In the definition of Gross Domestic Product in India, which of the following is not included

in the definition of Domestic Territory?

(a) Ships and aircrafts operated by the residents of the country.

(b) Fishing vessels operated by the residents of the country.

(c) Embassies and military establishments of the country located abroad.

(d) Corporate offices of the residents of the country living abroad.

19. NNP at factor cost plus ................. is equal to NNP at market price.

(a) subsidies

(b) indirect taxes minus subsidies

(c) subsidies and indirect taxes

(d) indirect taxes.

1 (a) 2 (b) 3 (c) 4 (b) 5 (c)

6 (b) 7 (b) 8 (a) 9 (b) 10 (d) 11 (b)

12 (d) 13 (b) 14 (c) 15 (d) 16 (a) 17 (a)

18 (d) 19 (b)