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

Question : 1

The term mixed economy denoted the existence of both

a) private and public sector

b) rural and urban sector

c) heavy and small industry

d) developed and under developed sector

Question : 2

Indicate the vital change in the measurement of National Income of India.

a) Calculation has been changed from factor cost to market prices

b) Base year has been changed from 2004-05 to 2011-12

c) Both the base year and calculation method have been changed

d) Calculation has been changed from current prices to constant prices

Question : 3

The growth rate of per capita income at current prices is higher than that of per capita income at constant prices, because the later takes into account the rate of

a) increase in price level

b) growth of population

c) increase in the wage rate

d) growth of money supply

Question : 4

Which of the following would cause consumption to rise?

a) a greater proportion of the population is between age 20 and 30

b) the GDP Deflator rises

c) transitory income increases

d) income is taken from poor people and given to rich people

Question : 5

Harrod-Domar model of growth is based on the concepts of and their equality.

1. Population and productivity growth.
2. Investment and average growth rate of income.
3. Actual, warranted and natural growth rate.
4. Productivity growth and investment growth. Codes:

   a) 3 only

   b) 1 and 4

   c) 1 and 3

   d) 1, 2 and 3

   Answer »

   Answer: (a)

Question : 6

Consider the following statements about ‘World Happiness Report 2018’ released by United Nations in March 2018.

1. India dropped 11 spots from its ranking in the previous year 2017.
2. Finland with 1st rank is the happiest country.
3. This report includes only 155 countries.

a) Only 1 and 3

b) Only 1

c) Only 2 and 3

d) Only 1 and 2