macro fundamentals, GDP, investment & growth section 2 MCQ Questions & Answers Detailed Explanation

Question : 1

Consider the following statements regarding India:

1. Exports (of goods and services) as a per cent of GDP has steadily decreased in the last decade
2. Imports (of goods and services) as a per cent of GDP has steadily increased in the last decade
3. Trade as a per cent of GDP has steadily decreased in the last decade

a) All of the above

b) (i) & (ii) only

c) (ii) only

d) None of the above

Question : 2

Micro-finance is the provision services to people of low-income groups. This includes both the consumers and the self-employed. The service/services rendered under micro-finance is/are

1. Credit-facilities
2. Saving facilities
3. Insurance facilities
4. Fund transfer facilities

a) Only 1 and 4

b) Only 1

c) 1, 2, 3 and 4

d) Only 2 and 3

Question : 3

Consider the following statements regarding Incremental Capital Output Ratio (ICOR):

1. It shows how efficiently capital is being used to produce output
2. It is the extra unit of capital required to produce one additional unit of output
3. It is the extra unit of output produced from one additional unit of capital
4. It is the ratio of change in capital to change in output

a) (i), (ii) & (iv) only

b) (i) & (ii) only

c) (i) only

d) (i), (iii) & (iv) only

Question : 4

Since 1997-98 which statement is correct regarding Minimum Support Price (MSP)?

a) MSP > C2 costs

b) MSP = C2 costs

c) MSP is independent to C2 cost

d) MSP < C2 costs

Question : 5

Green revolution was the result of adaption of New Agricultural strategy which was introduced in 20th Century during decades of

a) Sixties

b) Fifties

c) Eighties

d) Seventies

Question : 6

If India is experiencing economic growth, then which of the following statements must hold true:

1. Real GDP is increasing
2. Nominal GDP is increasing
3. Rate of growth of real GDP is increasing
4. Rate of growth of nominal GDP is increasing

a) (i) & (iii) only

b) (i) & (ii) only

c) (i) only

d) (i) & (iv) only