macro fundamentals, GDP, investment & growth section 2 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 16

Which of the following statements are true regarding Gross National Income:

1. It is the income earned by a country's Residents
2. It is the income earned by a country's residents and nonresidents both
3. It is calculated at market price by NSO
4. It is equal to GDP plus exports minus imports

a) (ii) & (iii) only

b) (i) & (iv) only

c) (i) & (iii) only

d) (ii), (iii) & (iv) only

Question : 17 [MPPSC (Pre) 2005]

The prices at which the government purchases grains for maintaining public distribution system and for building up buffer-stock is known as

a) Procurement Prices

b) Minimum Support Prices

c) Ceiling Price

d) Issue Prices

Question : 18 [UPSC (Mains) 2016]

Following are the source of institutional credit to agriculture in India.

1. Co-operative Banks
2. Regional Rural Banks
3. Commercial Banks

a) 2, 1, 3

b) 1, 3, 2

c) 3, 1, 2

d) 3, 2, 1

Question : 19

Consider the following statements:

1. Net Factor Income from Abroad is equivalent to the net of exports & imports
2. Net of Indirect taxes and subsidies are included in the calculation of national income

a) Both (i) & (ii)

b) (ii) only

c) (i) only

d) Neither (i) nor (ii)

Question : 20

Consider the following statements regarding Gross Domestic Product:

1. It is the value added by all the firms in the economy
2. It is the final value of goods and services produced in the economy
3. It is the sum of final consumption and investment expenditure by the household, private and government sector and net of exports and imports
4. It is the income received by the four factors of production

a) (i), (ii) & (iv) only

b) (i), (ii) & (iii) only

c) (i) & (ii) only

d) All of the above