ECONOMICS BASICS -MCQ UPSC-SSC-ALL EXAMS

 1. Which of the following activities is part of India’s GDP?

1. Activities in Indian embassies and consulates in other countries

2. Air India services between two different countries

3. Economic activities of residents of India in international waters

4. Purchase of movie tickets by foreigners in India

Select the correct answer using the code given below:

(a) 1 only

(b) 1, 2 & 3 only

(c) 3 & 4 only

(d) All of the above

2. Consider the following statements regarding Gross Domestic Product:

1. It is the value added by all the firms in the economy

2. It is the final value of goods and services produced in the economy

3. It is the sum total of final consumption and investment expenditure by government, private and household sector

4. It is the income received by the four factors of production

Select the correct answer using the code given below:

(a) 1 & 2 only

(b) 1, 2 & 3 only

(c) 1, 2 & 4 only

(d) All of the above

3. Consider the following statements

1. Capital goods are final goods and are not used as an input

2. Intermediate goods are capital goods

Select the correct answer using the code given below:

(a) 1 only

(b) 2 only

(c) Both 1 & 2

(d) Neither 1 nor 2

4. Which of the following are not counted in India’s GDP calculation?

1. Informal sector activity

2. Re-exports

Select the correct answer using the code given below:

(a) 1 only

(b) 2 only

(c) Both 1 & 2

(d) Neither 1 nor 2

5. If India is experiencing economic growth, then which of the following statements must hold true:

1. Real GDP will increase

2. Nominal GDP will increase

3. Rate of growth of real GDP will increase

4. Increase in employment generation

Select the correct answer using the code given below:

(a) 1 only

(b) 1 & 2 only

(c) 2 & 3 only

(d) 1 & 4 only

6. If a country is experiencing recession, then which of the following must be true:

(a) Decrease in real GDP

(b) Decrease in nominal GDP

(c) Decrease in rate of growth of GDP

(d) All of the above

7. The National Income of a country (India) is equal to which of the following:

(a) Gross National Product (GNP)

(b) Net National Product at Market Prices

(c) Net National Product at Factor Cost

(d) Income going to the household sector