| Most Important MCQs on the topic ” National Income “(Ch-6). These questions are very important for SSC, Railways, Defence, CTET, State PCS, UPSC, Judiciary and all other examinations of India. |
Q. In India, National Income is computed by which of the following?
(A) Planning Commission
(B) Ministry of Finance
(C) Central Statistical Organisation
(D) Reserve Bank of India
Q. Who among the following was the Chairman of National Committee appointed by Government of India in 1949?
(A) C.R. Rao
(B) P.C. Mahalanobis
(C) V.K.R.V. Rao
(D) K.N. Raj
Q. National Sample Survey Office (NSSO) was established in the year ______
(A) 1950
(B) 1951
(C) 1947
(D) 1948
Q. The Hindu rate of growth refers to the growth rate of ____
(A) Per Capita Income
(B) National Income
(C) Population
(D) Literacy
Q. National Income is the ______
(A) Net National Product at market price
(B) Net National Product at factor cost
(C) Net Domestic Product at market price
(D) Net Domestic Product at factor cost
Q. 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 depreciation and indirect tax plus subsidies
(D) Gross National Product at market price minus net factor income from abroad
Q. The national income of a country for a given period is equal to the _____
(A) Total value of goods and services produced by the nationals
(B) Sum of total consumption and investment expenditure
(C) Sum of personal income of all individual
(D) Money value of final goods and services produced
Q. In an open economy, the National Income (y) of the economy is (C, I, G, X, M, Y stand for Consumption, Investment, Government Expenditure, Total Exports, Total Imports and National Income, respectively).
Select the correct answer from the following.
(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)
Q. Which among the following sectors contribute most to GDP of India?
(A) Primary sector
(B) Secondary sector
(C) Tertiary sector
(D) All three contribute equally
Q. The most simple and popular method of measuring economic development is to calculate the trend of Gross National Product (GNP) at ______
(A) Current prices
(B) Constant prices
(C) Both of the above
(D) None of the above
Q. The first measure of India’s National Income was made by ____
(A) William Digby
(B) Dadabhai Naoroji
(C) M.G. Ranade
(D) V.K.R.V. Rao
Q. The Per Capita Income in India was 20 in 1867-68 was ascertained for the first time by ____
(A) M.G. Ranade
(B) Sir W. Hunter
(C) R.C. Dutta
(D) Dadabhai Naoroji
Q. Which one of the following is the correct sequence in the decreasing order of contribution of different sectors to the Gross Domestic Product of India?
(A) Service, Industry, Agriculture
(B) Service, Agriculture, Industry
(C) Industry, Service, Agriculture
(D) Industry, Agriculture, Service
Q. The Government of India has decided to revise the base for estimating the GDP from ______
(A) 2001-02 to 2010-11
(B) 2004-05 to 2013-14
(C) 2004-05 to 2011-12
(D) 2001-02 to 2011-12
Q. Indicate the vital change in the measurement of National Income of India.
(A) Base year has been changed from 2004-05 to 2011-12
(B) Calculation has been changed from factor cost to market prices
(C) Calculation has been changed from current prices to constant prices
(D) Both the base year and calculation method have been changed
Q. When National Income is calculated with reference to a base year, it is called ______
(A) Nominal national income
(B) Real national income
(C) Net national income
(D) Gross national income
Q. Which among the following are the factors that determine the national income of a country?
(A) Quantity and Quality of factors of produced
(B) The state of technical knowledge
(C) Economic and Political stability
(D) All of the above
Q. Which of the following is a sign of economic growth?
(A) An increase in national income at constant prices during a year
(B) A sustained increase in real per capita income
(C) An increase in national income at current prices overtime
(D) An increase in national income along with increase in population
Q. The growth rate of per capita income at current prices is higher than that of per capita income at constant prices, because the later takes into account the rate of ____
(A) growth of population
(B) increase in price level
(C) growth of money supply
(D) increase in the wage rate
Q. Human Development Index (HDI) comprises literacy rates, life expectancy at birth and ______
(A) Gross Domestic Product per head in US Dollars
(B) Gross Domestic Product per head at real purchasing power
(C) Gross National Product in US Dollars
(D) National Income per head in US Dollars
Q. Which of the following is/are the component(s) of Gross Domestic Capital Formation (GDCF)?
- Gross Domestic Saving
- Net Capital Inflow
- Direct Foreign Investment
Choose the correct answer from the codes given below.
Code
(A) Only 1
(B) Only 2
(C) Only 3
(D) Both 1 and 2
Q. One of the problems in calculating National Income in India is ______
(A) Under-employment
(B) Inflation
(C) Low level of savings
(D) Non-monetised consumption
Q. 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) Per Capita Real Income
Q. Which of the following causes have been mainly responsible for the slow growth of real per capita income in India?
- Rapid rise in population
- Rapid rise in prices
- Slow pace of progress in agriculture and industrial fields
- Non-availability of foreign exchange
Choose the correct answer from the codes given below.
(A) Only 1 and 2
(B) Only 1 and 3
(C) Only 1 and 4
(D) All of these
Q. Economic Survey in India is published by ______
(A) Ministry of Finance
(B) Planning Commission
(C) Ministry of Commerce
(D) Indian Statistical Institute