99 A 2 National Income 16 Feb

Part A


Qts 1 What is  Gross Domestic Product

1. It is total finished goods and services produced by Indians with in India.

2. It is in One financial Year. April 1 to March 31


Qts 2 What is Gross National Product 

1. It is total finished goods and Services produced by Indians with in India and in abroad.

2. It is in one financial Year. April 1 to March 31


Qts 3  What is  Net National Product

It is GNP - Depreciation

Net national product (NNP) is gross national product (GNP), the total value of finished goods and services produced by a country's citizens overseas and domestically, minus depreciation


Qts 4 What is  National Income

National Income at Factor Cost = NNP at Market Price – Indirect Taxes + Subsidies


Qts 5   Per Capita Income

It is National Income divided from Number of population in India


Qts 6 What is  Product Method

It is total finished Goods and Services produced by Indians

It is GDP


Qts 7. Expenditure Method

It is total money spent by Indians in one financial year.

It is GST


Qts 6 . What is Income Method

It is total income earned by Indians

It is Income tax

It is also National Income.


Part B


Qts 1  Increase in absolute and per capita real GNP do not connote a higher level of economic development, if 

(a) Industrial output fails to keep peace with agricultural output.

( b) Agricultural output fails to keep pace with industrial output.

(c) Poverty and unemployment increase.

(d) imports grow faster than exports.

Ans. C

Explanation: 

Economic development is a multi- dimensional concept. 

Growth in absolute and per capita GDP/GNP numbers signify growth only in a particular aspect, where in the benefits might accrue only to a small section of the society.

 If a country is ailing with poverty and unemployment, then increase in GNP numbers will not contribute to economic development significantly.


Qts 2 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 individuals

(d) money value of final goods and services produced


Ans. D

Explanation: 

The correct answer is the money value of final goods and services produced. National Income is the total monetary value of goods and services produced within the territory of the country in a given period of time.


Qts 3 The growth rate of per capita income at current prices is higher than that of per capita income constant prices, because the latter 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

Ans. B

Explanation:

It indicates the actual performance of the economy. 

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 increase in price level.

Per capita income at current prices takes into account the flow of money supply in the market and its related aspect.

Higher the money supply more income of people and hence, rises per capita income at the nominal prices.

Also, the GDP at current price is called the Nominal GDP, while those at the constant prices are called Real GDP.


Qts 4 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

Ans. B

 Explanation:

National Income is defined as the total monetary value of all goods and services produced within a country during a given period of time


Qts 5.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

Ans. D

 Explanation: 

Per capita income is a measure of the amount of money earned per person in a nation or geographic region. Per capita income is used to determine the average per-person income for an area and to evaluate the standard of living and quality of life of the population. Per capita income for a nation is calculated by dividing the country's national income by its population


Qts 6  The term National Income represents 

(a) Gross national product at market prices minus depreciation

(b)Gross national product at market prices minus depreciation plus net factor income from abroad

(c) Gross national product at market prices minus depreciation and indirect taxes plus subsidies

(d) Gross national product at market prices minus net factor income from abroad


Ans. C




Popular posts from this blog

Open Blog Test 1 A Mains cum Prelims General Studies

  General Studies  Open Blog Test Answers  Qts I Explain  Advent of Europeans   Ans 1 Vasco da Gama of Portugal discovered a new sea route from Europe to India in 1498.   2. Zamorin , Kerala ruler received Vasco da Gama    3.The first to come to India as traders were the Portuguese in 1498 followed by, The Dutcch 1595. the British 1600 , the Danes 1616 and the French   1632   Qts II.Write Bengal Nawabs Ans1. Murshid Quli Khan 2. Shuja Ud Din Muhammed Khan 3. Aliwardi Khan  4. Suraj Ud Daula  5. Mir Zafar 6. Mir Quasim 7. Majm Ud Daula   Qts III. Black hole Episode at Calcutta Ans I Siraj Ud Daulah was Bengal Nawab 2 British had Factory at Calcutta 3 Factory Called as Fort William 4 Mughal Ruler Jahangir gave permission to British 5 British misused permission 6 20 June 1756 attacked British Siraj ud Daulah 7 Siraj ud Daulah Imprisoned 146 British men in small Prison 8 143 ...
Read more

Ancient India 187

 1. The worship of idols started in India in  (a)  Pre-Aryan period (b) Gupta period (c) Mauryan period (d) Kushan period  Ans b 2. The sculpture with the three faces of Brahma, Vishnu  and Mahesh known as "Trimurti" appears in (a) Ajanta caves (b) Ellora caves (c) Karva caves  (d) Elephanta caves  Ans d 3 Which of the following throws light on Harappan Culture (a)Archaeological excavations (b) The script on copper sheets (c) Rock edicts (d) All of the above Ans .A Qts.4 Who is regarded as the greatest law giver of ancient India? (a) Megasthanese (b) Panini  (c) Manu (d) Kautilya Ans c Qts. 5 which place Gautama Buddha delivered his first sermon? (a) Sarnath (b) Lumbini (c) Bodh Gaya  (d) Vaishali Ans a Qts.6  Neolithic period of age is not characterized by (a) Agriculture (b) Use of copper  (c) Domestication of animals (d) Fishing Ans b Qts. 7 Name the God who lost his importance in the beginning of Christian era?  (a)  I...
Read more

69 A 1 Modern India Test Questions

1. Who said first: "Swaraj is my birth right and I shall have it” (a) Bal Gangadhar Tilak (b) M.K. Gandhi (c)Lala Lajpat Rai (d) Sardar Patel Ans a 2. "India Wins Freedom" was written by (a) Rajendra Prasad (b) Maulana Abul Kalam Azad (c) R.N. Tagore (d) J.L. Nehru Ans b   3. First Europeans, who started trade with India, were (a) The Portuguese (b) The British (c) The French (d) The Dutch Ans a   4. The Home Rule movement was launched by (a) Annie Besant (b) Bal Gangadhar Tilak (c) Mahatma Gandhi (d) Lala Lajpat Rai  Ans a   5. The cause for the immediate precipitation of the Sepoy Mutiny was (a) Use of cartridges greased with cow fat (b) Doctrine of Lapse (c) The disparity between salaries of Native Sepoys and the British Soldiers  (d) The Spread of Christianity Ans a   6. Gandhiji started Dandi March in 1930 (a) Against imposition of salt tax laws (b) Against the announcement of communal award (c) Against atrocities committed on Harijans (d) Against all ...
Read more