macro fundamentals, GDP, investment & growth section 1 MCQ Questions & Answers Detailed Explanation
MOST IMPORTANT indian economy mcq - 4 EXERCISES
The following question based on Macro fundamentals, GDP, Investment, Growth topic of indian economy mcq
(a) The NABARD, RBI, commercial banks and private money lenders
(b) The primary Agriculture cooperative societies, commercial banks, RRBs commercial banks and private money lenders
(c) The large scale multi-purpose Adivasis Programme, DCCB, IFFCO and commercial banks
(d) The District Central Cooperative Banks (DCCB), the lead banks, IRDP and JRY
The correct answers to the above question in:
Answer: (b)
Practice Macro fundamentals, GDP, Investment, Growth (macro fundamentals, GDP, investment & growth section 1) Online Quiz
Discuss Form
Read more macro fundamentals gdp investment growth Based Indian Economy Questions and Answers
Question : 1
Consider the following statements:
- Real per capita GDP has steadily increased in the last five years
- Real per capita income has steadily increased in the last five years
a) Both (i) & (ii)
b) (ii) only
c) (i) only
d) Neither (i) nor (ii)
Answer »Answer: (a)
India's population growth rate is around 1 per cent annually. Real GDP and Real GNP growth have been more than 5 per cent in the last five years.
If GDP is represented by Y and population by P. Then per capita GDP is Y/P
suppose the growth in GDP is 5% i.e. Y to 1.05 Y
And the growth rate in the population is 1% P to 1.01 P So, the growth in per capita GDP (Y/P) will be 1.05Y/1.01P = 1.0396 Y/P
So, the growth in per capita GDP (Y/P) will be 3.96%
So, till the time growth in GDP (Y) is more than the growth in population (P), then per capita GDP will always increase. (In fact, our GDP/GNP has always increased more than 4% in the last 30 years). If the growth of population and growth of GDP is the same then per capita GDP growth will be zero.
Hence, Real per capita GDP and real per capita GNP has steadily increased in the last five years.
Question : 2
Consider the following statements regarding ‘GDP Deflator’:
- It is an index of the price which is calculated as the ratio of nominal GDP to real GDP
- The weights differ according to the production level of each good in the GDP deflator
a) Both (i) & (ii)
b) (ii) only
c) (i) only
d) Neither (i) nor (ii)
Answer »Answer: (a)
The GDP deflator is an index of price and measures the price changes quarterly.
GDP deflator = nominal GDP/real GDP
CPI and WPI indices are calculated by fixing the weights of different goods and services but in case of the GDP deflator, it varies as per actual production level.
(Its highly technical, if you don’t understand, leave it, will provide a video)
Question : 3
If a factory is running at peak production with certain number of labourers then the marginal productivity of labour will be:
a) Zero
b) Negative
c) Positive
d) One
Answer »Answer: (a)
Marginal productivity of labour = $\text"Change in output"/\text"Change in labour"$
Marginal productivity of labour means how much extra production will increase by adding one extra labour.
When a factory is running at peak production, then its production cannot be increased even by adding more labourers. So, the marginal productivity of labour will be zero.
Question : 4
In domestic savings, generally which sector has the highest share?
a) Public Sector
b) Private corporate
c) Household
d) Almost equal contribution by the above sectors
Answer »Answer: (c)
Domestic savings consist of Household savings, Corporate (Private) savings and Government (Public) savings.
Household savings (17.2%), Private Corporate (11.6%), Public Sector (1.7%). Total domestic savings around 30.5% in FY 2017-18.
Investment also consists of household, Corporate (Private) and Government (Public). Here household investment includes unregistered/informal business and construction of houses etc.
Household investment (10.5%), Private Corporate (11.5%) and Government (Public) (7.3%). Total fixed capital formation (investment) is 29.3% in 2018-19. The maximum decline in investment in the last 8 years is in household sector from 16% to 10.5%.
Question : 5
The share of the tertiary sector in total GDP of India has
a) shown a decreasing trend
b) shown an increasing trend
c) been fluctuating
d) remained constant
Answer »Answer: (b)
Question : 6
Welfare of the people of a country is best represented by which of the following parameter:
a) Per capita GDP at constant prices
b) Per capita net national income at current prices
c) Per capita net national income at constant prices
d) Per capita GDP at current prices
Answer »Answer: (c)
The question talks about “people of a country” which is basically residents of the country and the income coming to residents is represented by National Income rather than GDP.
As it talks about welfare, so it should be better calculated as per capita National Income rather than just National Income. And since the increase in price can increase the National Income without increasing the welfare of the people.
So, welfare can best be represented by per capita National Income at constant market prices rather than current market prices.
[Ref: Economic Survey 2017-18, Vol-II, Page 7, Per Capita Income]
GET Macro fundamentals, GDP, Investment, Growth PRACTICE TEST EXERCISES
macro fundamentals, GDP, investment & growth section 1
macro fundamentals, GDP, investment & growth section 2
macro fundamentals, GDP, investment & growth section 3
macro fundamentals, GDP, investment & growth section 4
Macro fundamentals, GDP, Investment, Growth Shortcuts and Techniques with Examples
Verbal Reasoning
Question & Answer Quiz
Non Verbal Reasoning
Question & Answer Quiz
Quantitative Aptitude
Question & Answer Quiz
Computer MCQ
Question & Answer Quiz
General English
Question & Answer Quiz
History GK
Question & Answer Quiz
Polity GK
Question & Answer Quiz
Geography GK
Question & Answer Quiz
Economy GK
Question & Answer Quiz
General Awareness GK
Question & Answer Quiz
Recently Added Subject & Categories For All Competitive Exams
New 100+ Compound Interest MCQ with Answers PDF for IBPS
Compound Interest verbal ability questions and answers solutions with PDF for IBPS RRB PO. Aptitude Objective MCQ Practice Exercises all competitive exams
Continue Reading »
100+ Mixture and Alligation MCQ Questions PDF for IBPS
Most importantly Mixture and Alligation multiple choice questions and answers with PDF for IBPS RRB PO. Aptitude MCQ Practice Exercises all Bank Exams
Continue Reading »
IBPS Profit and Loss Questions Solved Problems with PDF
Most important Profit and Loss multiple choice questions and answers with PDF for IBPS RRB PO. 100+ Aptitude MCQ Practice Exercises all competitive exams
Continue Reading »
100+ Average Aptitude Questions Answers solutions MCQ PDF
New Average multiple choice questions and answers with PDF for IBPS RRB PO. 100+ Quantitative Aptitude MCQ Practice Exercises all competitive exams
Continue Reading »