macro fundamentals, GDP, investment & growth section 3 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) Increasing capital output ratio and keeping investment at a constant rate
(b) Raising the investment and incremental capital output ratio both
(c) Raising the investment by keeping the incremental capital output ratio minimum
(d) All of the above
The correct answers to the above question in:
Answer: (c)
% change in GDP = $\text"Investment %"/\text" Incremental Capital Output Ratio (ICOR)"$
So, for higher growth rate, we require more investment and less ICOR
Practice Macro fundamentals, GDP, Investment, Growth (macro fundamentals, GDP, investment & growth section 3) Online Quiz
Discuss Form
Read more macro fundamentals gdp investment growth Based Indian Economy Questions and Answers
Question : 1
If a country is experiencing recession, then which of the following shall be true:
a) Decrease in rate of growth of GDP
b) Decrease in nominal GDP
c) Decrease in real GDP
d) All of the above
Answer »Answer: (c)
Real GDP growth measures growth in quantity only and nominal GDP measures growth in value (which includes quantity as well as price).
Now, suppose an economy produces wheat and rice. The quantities produced and the market price is given in the following table.
The base year for the calculation of GDP is 2011-12. So, if we want to calculate India's Real GDP for 2014-15 then we will have to take the quantities produced in 2014-15 and the prices of 2011-12 (base year). And if we want to calculate the Nominal GDP of 2014-15 then we will have to take the quantities produced in 2014-15 and the market prices of the same year i.e. 2014-15.
In India, economic growth is measured by the change in real GDP i.e. GDP at constant Market Prices as per the global best practices.
So, Real GDP is steadily/consistently increasing from 2011-12 to 2014-15 but "change in real GDP" is decreasing from 11.2% to 4.6% and change in nominal GDP is also decreasing from 2011-12 to 2014-15.
The above is a case of economic growth as real GDP is increasing. But since the rate of change of real GDP is decreasing (but not negative), we say that economic growth is slowing down. When the "real GDP" decreases or "change in real GDP" is negative then it is a case of recession.
And if the prices are decreasing more but the production quantity is increasing then the nominal GDP may decrease but Real GDP may increase. So, in case of economic growth, nominal GDP may decrease.
Q.No.9, only (i) statement is the required criteria. Because even if (iii) statement is not true (as in the above example), a country may experience economic growth.
Question : 2
Which one of the following is not the problem of Small Scale Industries (SSIS)?
a) Marketing
b) Finances
c) Strikes and lockouts
d) Raw material
Answer »Answer: (c)
Question : 3
Consider the following statements regarding CPI and WPI:
- CPI includes indirect taxes
- WPI includes indirect taxes
a) Both (i) & (ii)
b) (ii) only
c) (i) only
d) Neither (i) nor (ii)
Answer »Answer: (c)
CPI includes indirect taxes. So, when government increases the GST rate, it is captured in the CPI data.
But in the new series of WPI (2011-12), the government has excluded indirect taxes while measuring WPI. This is in consonance with international practices and will make the new WPI conceptually closer to the Producer Price Index (PPI).
Question : 4
In the last one decade, which one among the following sectors has attracted the highest foreign direct investment inflows into India?
a) Services Sector
b) Chemicals other than fertilizers
c) Telecommunication
d) Food processing
Answer »Answer: (a)
Question : 5
The Concept of ‘Navratna’ is associated with
a) selected export - oriented units
b) selected categories of technical manpower
c) selected Public Sector Enterprises
d) selected food - processing industries
Answer »Answer: (c)
Question : 6
Who among the following is associated with ‘White revolution’?
a) Verghese Kurien
b) P.J. Kurien
c) M.S. Raghanathan
d) M.S. Swaminathan
Answer »Answer: (a)
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
Puzzle Reasoning Questions Answers PDF: IBPS Clerk 2024
Top Reasoning Puzzle Test questions with answers, fully solved explanation and download PDF for IBPS Clerk Prelims 2024. Aptitude MCQ-based practice test
Continue Reading »
Most Important Antonyms Vocabulary - IBPS Clerk Prelims 2024
Latest Antonyms multiple choice questions and answers with free PDFfor IBPS Clerk Prelims 2024. English Vocabulary practice exercise for all bank exam
Continue Reading »
Syllogism Practice Questions Answers PDF - IBPS Clerk 2024
Practice Verbal Reasoning Syllogism multiple choice questions and answers with Fully solved explanation, PDF for the IBPS Clerk Prelims 2024 Bank Exam
Continue Reading »
IBPS Clerk Prelims 2024 Synonyms Questions Solved Answers
Most important IBPS Clerk Prelims 2024 Synonyms and Antonyms multiple choice questions and answers with detailed solutions, English vocabulary PDF Download
Continue Reading »