national income & human development index section 5 MCQ Questions & Answers Detailed Explanation

Answer: (c)

Answer: (a)

The effect of a government surplus upon the equilibrium level of NNP (Net National Product) is substantially the same as an increase in consumption.

Answer: (d)

Physical planning refers to the allocation of resources in terms of men, materials and machinery. In physical planning, an overall assessment is made of the available real resources such as raw materials, manpower, etc., and how they have to be obtained so that bottlenecks may be eliminated during the plan.

Physical planning requires the fixation of physical targets with regard to agricultural and industrial production, socio-cultural and transportation services, consumption levels and in respect of employment, income and investment levels of the economy. Physical planning has to be viewed as overall long-term planning rather than short-term piecemeal planning.

Financial planning refers to the technique of planning in which resources are allocated in terms of money. Financial planning is essential in order to remove maladjustments between supplies and demand and for calculating the costs and benefits of the various projects.

Thus, Financial planning is thought to secure a balance between demands and supplies, avoid inflation and bring about economic stability.

Answer: (d)

The most appropriate measure of the country’s economic growth is its “per capita real income” which is also denoted as NNP at factor cost population.

Answer: (d)

In the year 2006 – 07, the Indian economy has witnessed the highest growth rate in GDP.

The economy grew by 7.7 %. Highest growth rate GDP - in 2010 (10.26%)

Answer: (c)