national income & human development index section 1 MCQ Questions & Answers Detailed Explanation

Question : 1

In free economy, inequalities in income is due to

a) private property and inheritance

b) free competition

c) differences in the marginal productivity of labour

d) private property only

Question : 2

The term National Income represents

a) Gross National Product at market price minus depreciation plus net factor Income from abroad

b) Gross National Product at market price minus depreciation

c) Gross National Product at market price minus net factor income from abroad

d) Gross National Product at market price minus depreciation and indirect tax plus subsidies

Question : 3

Share of food in total consumption expenditure has been coming down as Per Capita Income grew over time in last sixty years because

a) people have been preferring non-cereal items in their food basket

b) people have been purchasing less food

c) growth in food expenditure has been lower than growth in per capita income

d) percentage of the poor in population has increased over time

Question : 4

In India, rural incomes are generally lower than urban incomes. Which of the following reasons account for this?

1. A large number of farmers are illiterate and know little about scientific agriculture.
2. Prices of primary products are lower than those of manufactured products.
3. Investment in agriculture has been lower when compared to investment in the industry

a) 1 and 2

b) 1, 2 and 3

c) 1 and 3

d) 2 and 3

Question : 5

The most simple and popular method of measuring economic development is to calculate the trend of Gross National Product (GNP) at

a) Constant prices

b) Current prices

c) None of the above

d) Both of the above

Question : 6

National product at factor cost is equal to

a) National product at market prices - indirect taxes + subsidies

b) Domestic product + Net factor income from abroad

c) Gross domestic-product - depreciation

d) National product at market prices + Indirect taxes + subsidies