national income & human development index section 5 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 26 [MPPCS (Pre) 2008]

Human Development Index (HDI) comprises literacy rates, life expectancy at birth and

a) Gross Domestic Product per head at real purchasing power

b) Gross Domestic Product per head in US Dollars

c) National Income per head in US Dollars

d) Gross National Product in US Dollars

Answer: (c)

Question : 27

To obtain full benefits of demographic dividend, what should India do ?

  1. Promoting skill development
  2. Introducing more social security schemes
  3. Reducing infant mortality rate
  4. Privatisation of higher education
Which of the above statements is/are correct ?

a) None of the above

b) 2 only

c) 1 only

d) 3 and 4 only

Answer: (c)

To rip maximum demographic dividend, India has to promote skill development. This is what Economic Survey and 12th FYP have been advocating.

Question : 28

Consider the following statements :

  1. LPG model of the Indian Economy was fully implemented in the Eighth Five Year plan.
  2. The Eighth plan envisaged an annual average growth rate of 5.6% but the real growth rate was 6.8%.
Which of the statements given above is/are correct?

a) only 2

b) only 1

c) Both 1 and 2

d) Neither 1 nor 2

Answer: (c)

The economy of India had undergone significant policy shifts at the beginning of the 1990s at the time of the eighth plan. This new model of economic reforms is commonly known as the LPG or Liberalization, Privatization and Globalization model.

LPG model of economic development in India was proposed by Dr Manmohan Singh, economist and finance minister at that time.

Moreover, the Eighth plan envisaged an annual average growth rate of 5.6% but the real growth rate was 6.8%.

Question : 29 [HPPSC (Pre) 2014]

When National Income is calculated with reference to a base year, it is called

a) Real national income

b) Nominal national income

c) Gross national income

d) Net national income

Answer: (a)

Question : 30

Depreciation is equal to

a) NNP – GNP

b) GNP – NNP

c) GNP – Personal Income

d) Personal Income – Personal Taxes

Answer: (b)

Depreciation is equal to GNP–NNP (Gross national products–Net national products) In economic, Depreciation is the gradual decrease in the economic value of the capital stock of a form nation or other entity.

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