Prelims-IAS –ECONOMICS MCQ-01

1..Consider following statements about Net National Product (NNP):

  1. It is more than GNP.
  2. NNP (at factor cost) increases if indirect tax increases.
  3. NNP (at factor cost) increases if subsidies increases.

Which of the above is/are correct?

(a) 1 only
(b) 1 and 2
(c) 3 only
(d) All


2..Consider the following statements regarding the National disposable income:

  1. it is the income from all sources to the residents of a nation for spending on the consumption during a year.
  2. it is equal to sum of net national product at market price and other current transfers from rest of the world.
  3. current transfers includes gifts, cash, military equipments.

Which of the above statements is/are correct?
(a) only 1
(b) 2 and 3

(c) 1 and 2

(d) 1, 2 and 3


3..Which of the following are excluded in the estimation of Gross National Product?

  1. buying and selling of securities.
  2. private transfer payments.
  3. transfer of used goods
  4. non-market goods and services.

Choose the correct option.

(a) Only 1
(b) 2 and 3
(c) 1, 2, 3 and 4
(d) All of the above


4..Which of the following is/are correct with respect to economic indicators?

  1. When capital consumption allowance is taken out from GDP, the resultant is net domestic product or NDP
  2. Net Factor Income subtracted from GDP provides the value of Gross National Product or GNP
  3. Genuine Progress Indicator takes into account everything that GDP does, but also adds other figures like cost of crime, cost of pollution etc.; i.e. cost of negative effects of economic activity

Select the correct answer using the code given below.
(a) 1, 2, 3
(b) 1, 2

(c) 2, 3

(d) 1, 3


5..Which of the following are the pillars of Gross National Happiness?

  1. promotion of sustainable development
  2. preservation and promotion of cultural values
  3. conservation of natural environment
  4. establishment of good governance.

Choose the correct option.

(a) 2 and 4
(b) 1 and 3
(c) 1, 3 and 4
(d) 1, 2, 3 and 4


INDIAN ECONOMY- GS PAPER 3 – GUIDANCE PROGRAM

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