national income & human development index section 2 MCQ Questions & Answers Detailed Explanation

Answer: (a)

Answer: (b)

GDP at factor cost is GDP at market price minus indirect taxes plus subsidies.

GDP at factor cost measure the value of output in terms of what it really costs to produce.

The gross value of output = Value total Sales Goods & Services + Value of changes in the inventories.

The Sum of net value added in various economic activities is known as GDP at factor cost.

Answer: (d)

GDP is defined as the value of all final goods and services produced in an economy in a year.

The total quantity of goods produced in an economy during the year is multiplied by their current prices to get the GDP. Gross Domestic Product can be calculated using formulas.

GDP = C + G + I + NX

Where, C - Private consumption or consumer spending in the national economy.

G - Sum of Govt. spending.

I - Sum of all the country’s investment including business Capital expenditure.

NX - Nation’s total next exports

NX = Export – Import

Answer: (a)

India is a labour-surplus economy because in India there is disguised unemployment along with under-employment which means that a qualified, skilled workforce willing to work is available but there are not enough employment opportunities.

Trade Surplus Economy - Economic measure of positive Balance of trade where a country’s export exceed its imports. Surplus Labour is a concept used by Karl Marx in his critique of political economy.

Capital Surplus - It is equity that cannot otherwise be classified as capital stock or retained earnings.

Answer: (d)

Answer: (d)

The labour force of an economy is known as the activity rate (also called the participation rate).

It is shown in per cent and always as a proportion of an economy. The concept of the ‘demographic dividend’ is related to this rate.