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Prelims-IAS –ECONOMICS MCQ-04

1..Regarding the new methodology to calculate GDP, which of the following statements are correct?

  1. Industrial output data will now be sourced from Annual Survey of Industries.
  2. Having a broader base to collect industrial output makes GDP more prone to revisions.
  3. The GDP can now increase even if number of units produced remain the same.
  4. It has nominally increased the size of Indian economy (GDP) for the past 3 years.

Select the correct answer from the codes given below.
(a) 1 and 4 only
(b) 1, 2 and 4 only
(c) 2 and 3 only
(d) 1, 2, 3 and 4


2..Which of the following statements is/are correct?

  1. Real GDP can calculate the change in prices.
  2. GDP deflator does not include price of imported goods
  3. Subsidies are included in National Income

Select the correct answer from the codes given below.
(a) 1 and 2 only
(b) 2 and 3 only

(c) 1 and 3 only
(d) 1, 2 and 3


3..Consider the following statements regarding economic indicators:

  1. National Income is calculated by adding subsidies to market prices.
  2. Gross National Product (GNP) is a measure of the value of output produced by all Indian nationals anywhere in the world.
  3. Gross Domestic Product (GDP) shows how much is produced within the boundary of the country by the citizens of the country.

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

(c) 1 and 3 only
(d) 1, 2 and 3 only


4..In the New Series (2011-12) estimates of the National Income, the relationship between GVA at factor cost, GVA, at basic prices, and GDP (at market prices) is given below:

  1. GVA at basic prices = GVA at factor cost – (production taxes less production subsidies)
  2. GVA at factor cost = GVA at basic prices – (production taxes less production subsidies)
  3. GDP = sum of GVA at basic prices + product taxes – product subsidies

Which of the statements given above is/are not true?
(a) 1 only
(b) 1 and 3 only

(c) 2 only
(d) 2 and 3 only


5..Which among the following will not be taken into account while counting GDP of the country?

  1. Tyres purchased by the car company
  2. Household work done by women
  3. Sale of an old mobile phone
  4. New car purchased by a customer

Select the correct answer using the codes given below

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


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