Q.1) A country wants to know whether the quantity of goods produced in that country in a year has increased when compared to the previous year. Which of the following would give an idea regarding the same?
[a] Real GDP
[b] Nominal GDP
[c] GDP Deflator
[d] Purchasing Power Parity
[e] None of the above
Q.2) Which of the following statement(s) is/are incorrect regarding constant prices and current prices?
[a] Constant prices are the base year prices and the current prices refer to the prices of the year in question
[b] To calculate the Nominal GDP, constant prices are used and to calculate the Real GDP, current prices are used.
[c] It is better to measure growth at constant prices rather than current prices because measurement at Constant Prices cancels the effect of Inflation (Price Rise).
[d] None of the above
[e] All of the above
Q.3) Which of the following statement(s) is/are correct regarding ‘Gini Coefficient’?
[a] Gini coefficient is a way of comparing how distribution of income in a society compares with a similar society in which everyone earned exactly the same amount, thus it is an index to measure inequality.
[b] Inequality on the Gini scale is measured between 0, where everybody is equal, and 1, where all the country’s income is earned by a single person.
[c] The higher is the Gini Coefficient, more is gap between rich and poor in a country
[d] India’s Gini coefficient stood at 0.352 in 2016 Human Development Report.
e] All the above
Q.4) Which of the following resources are NOT Factors of Production?
Q.5) There are three methods using which the National Income of a nation can be calculated. While using the Output/Value Added/Product method to calculate the National Income, which of the following are the precautions that should be taken?
1. Sale and Purchase of Second hand goods should not be included.
2. The value of Intermediate goods should be taken into account.
3. The value of goods produced for self-consumption should be included.
4. Domestic services and voluntary work done are to be excluded (exception: domestic services produced by paid employees)
[a] 1, 2, 3
[b] 2, 3, 4
[c] 1, 3 ,4
[d] 1 and 4
[e] 1, 2, 3, 4
Q.6) Which of the following statements regarding ‘Growth’ and ‘Development’ is/are incorrect?
[a] ‘Growth’ refers to the increase or decrease in quantity whereas ‘Development’ is a qualitative concept.
[b] Growth can be negative whereas Development cannot.
[c] Growth is always accompanied by Development.
[d] Development can be said as a Growth in positive direction.
[e] None of the above
Q.7) Which of the following states in India become the first in India to start a separate ‘Happiness Department’ ?
[a] Andhra Pradesh
[b] Uttar Pradesh
[c] Madhya Pradesh
[e] Tamil Nadu
Q.8) Which of the following is the correct relation between the Basic Price and Factor Cost of a product?
[a] Factor Cost + Production Taxes – Production Subsidy = Basic Price
[b] Factor Cost – Production Taxes + Production Subsidy = Basic Price
[c] Factor Cost + Product Tax – Product Subsidy = Basic Price
[d] Factor Cost – Product Tax + Product Subsidy = Basic Price
[e] Factor Cost + Product Tax + Production Tax – Product Subsidy – Production Subsidy = Basic Price
Q.9) The World Happiness Report is published by which of the following agencies/organizations?
[b] UN Sustainable Development Solutions Network
[e] World Bank
Q.10) The payments made by the government to individuals for which there is no economic activity in return by these individuals like pensions, scholarships etc are known as?
[a] Personal Income
[b] Disposable Personal Income
[c] Transfer Payments
[e] Undistributed profits
1)[a] Real GDP
2)[b] To calculate the Nominal GDP, constant prices are used and to calculate the Real GDP, current prices are used.
3)e] All the above
5)[c] 1, 3 ,4
6)[c] Growth is always accompanied by Development
7)[c] Madhya Pradesh
8)[a] Factor Cost + Production Taxes – Production Subsidy = Basic Price
9)[b] UN Sustainable Development Solutions Network
10)[c] Transfer Payments