macro fundamentals, GDP, investment & growth section 1 Practice Questions Answers Test with Solutions & More Shortcuts
Macro fundamentals, GDP, Investment, Growth PRACTICE TEST [4 - 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
Question : 26 [UPSC (Pre) 1999]
The farmers are provided credit from a number of sources for their short and long-term needs. The main sources of credit to the farmers include
a) The NABARD, RBI, commercial banks and private money lenders
b) The primary Agriculture cooperative societies, commercial banks, RRBs commercial banks and private money lenders
c) The large scale multi-purpose Adivasis Programme, DCCB, IFFCO and commercial banks
d) The District Central Cooperative Banks (DCCB), the lead banks, IRDP and JRY
Answer »Answer: (b)
Question : 27
Consider the following statements:
- Real per capita GDP has steadily increased in the last five years
- Real per capita income has steadily increased in the last five years
a) Both (i) & (ii)
b) (ii) only
c) (i) only
d) Neither (i) nor (ii)
Answer »Answer: (a)
India's population growth rate is around 1 per cent annually. Real GDP and Real GNP growth have been more than 5 per cent in the last five years.
If GDP is represented by Y and population by P. Then per capita GDP is Y/P
suppose the growth in GDP is 5% i.e. Y to 1.05 Y
And the growth rate in the population is 1% P to 1.01 P So, the growth in per capita GDP (Y/P) will be 1.05Y/1.01P = 1.0396 Y/P
So, the growth in per capita GDP (Y/P) will be 3.96%
So, till the time growth in GDP (Y) is more than the growth in population (P), then per capita GDP will always increase. (In fact, our GDP/GNP has always increased more than 4% in the last 30 years). If the growth of population and growth of GDP is the same then per capita GDP growth will be zero.
Hence, Real per capita GDP and real per capita GNP has steadily increased in the last five years.
Question : 28
Consider the following statements regarding ‘GDP Deflator’:
- It is an index of the price which is calculated as the ratio of nominal GDP to real GDP
- The weights differ according to the production level of each good in the GDP deflator
a) Both (i) & (ii)
b) (ii) only
c) (i) only
d) Neither (i) nor (ii)
Answer »Answer: (a)
The GDP deflator is an index of price and measures the price changes quarterly.
GDP deflator = nominal GDP/real GDP
CPI and WPI indices are calculated by fixing the weights of different goods and services but in case of the GDP deflator, it varies as per actual production level.
(Its highly technical, if you don’t understand, leave it, will provide a video)
Question : 29
If a factory is running at peak production with certain number of labourers then the marginal productivity of labour will be:
a) Zero
b) Negative
c) Positive
d) One
Answer »Answer: (a)
Marginal productivity of labour = $\text"Change in output"/\text"Change in labour"$
Marginal productivity of labour means how much extra production will increase by adding one extra labour.
When a factory is running at peak production, then its production cannot be increased even by adding more labourers. So, the marginal productivity of labour will be zero.
IMPORTANT indian economy mcq EXERCISES
Macro fundamentals, GDP, Investment, Growth Shortcuts »
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indian economy MCQ CATEGORIES
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» Introduction to Indian Economy
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» Planning, Economic Development & Five year Plans
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» National Income & Human Development Index
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» Agriculture Sector, Subsidy and Food Processing
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» Industries, Manufacturing & Service Sectors
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» Inclusive growth, Sustainable development and employment
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» Poverty & Unemployment
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» Introduction to Micro Economics
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» Introduction to Macro Economics
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» Macro fundamentals, GDP, Investment, Growth
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» Demand & Supply, Profit Loss, Inflation & Price Index
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» Fiscal Policy, Public Finance and Monetary Policy
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» Money Supply, Banking and Financial Institutions
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» Taxes Types, Methods & Budgeting Process
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» Banking, Security Market & Insurance
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