Practice Quiz :- 16


1. In India, agriculture income is calculated by
(a) output method
(b) input method
(c) expenditure method
(d) commodity flow method

Ans.(a) output method

2. Who coined the term ‘Hindu rate of growth’ for Indian Economy?
(a) A.K. Sen
(b) Kirit S. Parich
(c) Raj Krishna
(d) Montek Singh Ahluwalia

Ans.(c) Raj Krishna

3. GDP as factor cost is
(a) GDP minus indirect taxes plus subsidies
(b) GNP minus depriciation allowances
(c) NNP plus depreciation allowances
(d) GDP minus subsidies plus indirect taxes

Ans.(a) GDP minus indirect taxes plus subsidies

4. Per capita Income is obtained by dividing National Income by
(a) total population of the country
(b) total working population
(c) area of the country
(d) volume of the capital used

Ans.(a) total population of the country

5. Which one of the following is a development expenditure?
(a) Irrigation expenditure
(b) Administration
(c) Debt services
(d) Grant-in-Aid

Ans.(a) Irrigation expenditure

6. GDP is defined as the value of all
(a) goods produced in an economy in a year
(b) goods and services in an economy in a year
(c) final goods produced in an economy in a year
(d) final goods and services produced in an economy in a year.

Ans.(d) final goods and services produced in an economy in a year.

7. Depreciation is equal to
(a) GNP – NNP
(b) NNP – GNP
(c) GNP – Personal Income
(d) Personal Income – Personal Taxes

Ans.(a) GNP – NNP

8. Which one of the following is not a method of measurement of National Income?
(a) Value Added Method
(b) Income Method
(c) Expenditure Method
(d) Investment Method

Ans.(d) Investment Method

9. Net National product (NNP) of a country is
(a) GDP minus depreciation allowances
(b) GDP plus net income from abroad
(c) GNP minus net income from abroad
(d) GNP minus depreciation allowances

Ans.(d) GNP minus depreciation allowances

10. National Income is based on the
(a) total revenue of the state
(b) production of goods and services
(c) net profit earned and expenditure made by the state.
(d) the sum of all factors of income

Ans.(b) production of goods and services