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Prelims-IAS –ECONOMICS MCQ-06

1..Which of the following statements is/are correct?
1. Central Statistical Organisation (CSO) measures both Index of Industrial Production (IIP) and
Gross Domestic Product (GDP) in India.
2. From January 2015 GDP at market price is the headline GDP of India.
Select the correct answer using the code given below:
A. 1 only
B. 2 only
C. Both 1 and 2

D. Neither 1 nor 2


2..What is Net factor income from abroad?

A. All income of residents from abroad net of similar incomes of non residents and their transfers.

B. All income in terms of operating surplus and  compensation of employees earned by domestic  residents abroad minus similar income paid to non residents.
C. All income of Indian citizens abroad
D. All the above are correct.

3..Incremental Capital Output Ratio (ICOR) is:
A. Same in agriculture and industries in India

B. Lower when capital efficiency increases
C. Always a stock variable
D. Always more than 1

4..Which of the following statements is not true about investment in India?

A. Investment as a ratio of GDP has been declining in the last 4 quarters as a trend.

B. Investment as a ratio of GDP peaked in 2007-08 and has not reached that level ever again.

C. Investments are inversely affected by high government borrowing

D. Investment does not include change in stock


5..Which institution replaced Disinvestment Commission in 2016?
A. Niti Aayog Investment Authority

B. NCLT
C. DIPAM
D. Department for Reorganisation and Planning Management of Public Asset

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