macro fundamentals, GDP, investment & growth section 4 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
- Wholesale Price Index (WPI) does not represent the inflation in services
- Consumer Price Index (CPI) represents the inflation in goods and services
- CPI and WPI represent the inflation of imported goods also
- GDP deflator captures the inflation of the goods and services produced domestically
(a) (ii), (iii) & (iv) only
(b) (i), (ii), (iii) only
(c) (i) & (ii) only
(d) All of the above
The correct answers to the above question in:
Answer: (d)
Services are not traded/transacted in the wholesale markets. So, WPI data does not include inflation due to services. So, (i) statement is true
When goods are imported in India, first they move to the wholesale mandis and then they come to the retail markets. So, wholesale prices and retail prices both get impacted because of the imported goods.
So, (iii) statement is true.
As the formula of GDP Deflator (is) = $\text"Nominal GDP"/\text"Real GDP"$
Since GDP includes only domestic goods and services, hence, GDP Deflator does not include inflation due to imported goods and services. So, (iv) statement is true.
Practice Macro fundamentals, GDP, Investment, Growth (macro fundamentals, GDP, investment & growth section 4) Online Quiz
Discuss Form
Read more macro fundamentals gdp investment growth Based Indian Economy Questions and Answers
Question : 1
Reason for low-productivity in Indian agriculture is
a) small land holdings
b) engagement of more persons in agricultural operations than needed
c) All of the above
d) backward technique of production
Answer »Answer: (c)
Question : 2
Long-term agricultural credit is provided by
a) District Cooperative Bank
b) Primary Cooperative Society
c) State Cooperative Bank
d) Land Development Bank
Answer »Answer: (d)
Question : 3
Which of the following agencies is not engaged in exporting agricultural goods from India?
a) State Trading Corporation
b) NAFED
c) MMTC
d) IFFCO
Answer »Answer: (c)
Question : 4
India is planning to become a $5 Trillion economy by 2024-25. Consider the following statements.
- It is in nominal terms
- It is in PPP terms
- It will require compounded annual real growth of around 8%, with 4% inflation
a) (i) & (iii) only
b) (ii) only
c) (i) only
d) (ii) & (iii) only
Answer »Answer: (a)
2018-19 2024-25 USD 2.7 Trillion USD 5 Trillion (nominal GDP) (Nominal GDP)
So, it requires 85% growth in six years, which comes down to around 12% compounded annual growth. This 12% is nominal growth which can be achieved with real growth of around 8% and inflation of around 4%.
Question : 5
Consider the following statements regarding Small-Scale industries,
Small-Scale industries are in most cases not as efficient and competitive as large-scale ones. Yet the Government provides preferential treatment and reservation in a range of products to the small firms because small scale-industries.
- Provide higher employment on a per-unit capital development basis.
- Promote a regional dispersion of industries and economic activities.
- Have performed better in the export of manufactured products than the large scale ones.
- Provide jobs to low skill workers who otherwise may not find employment avenues elsewhere.
a) 1 and 2
b) 1 and 4
c) 3 and 4
d) 2 and 3
Answer »Answer: (b)
Question : 6
Consider the following statements:
- Investment in the economy increases with a decrease in the capital-output ratio
- Economic output increases with a decrease in capital-output ratio
a) Both (i) & (ii)
b) (ii) only
c) (i) only
d) Neither (i) nor (ii)
Answer »Answer: (b)
Capital/Output ratio represents (inverse of) productivity of capital. If the capital/output ratio is decreasing, that means capital is becoming more productive. But you cannot say that investment will increase.
But if capital is becoming more productive, then the economic output will increase.
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
SSC STENO: Time & Work Questions Solved Problems with PDF
Free Time and work Aptitude-based Practice multiple questions with solutions, Quiz series, Mock Test & Downloadable PDF for SSC Steno (Grade C & D) 2024 Exam
Continue Reading »
SSC STENO 2024: Free Reading Comprehension MCQ Test PDF
Top Reading Comprehension English Section-wise multiple choice questions and answers, Full Mock Test Series & Online Quiz for SSC Steno Grade C & D 2024 Exam
Continue Reading »
Free Percentage Questions Answers for SSC STENO 2024 Exam
Important Top Percentage Aptitude-based multiple choice questions and answers practice quiz series, Online Mock Test PDF for SSC Steno Grade C & D 2024 Exam
Continue Reading »
Free Antonyms (English) MCQ Test for SSC STENO 2024 Exam
Top Antonyms General English Section-based multiple choice questions and answers, Free Full Test Series & Online Quiz PDF for SSC Steno Grade C & D 2024 Exam
Continue Reading »