The most appropriate measure of a country’s economic growth is its
- (a)Gross Domestic Product
- (b)Net Domestic Product
- (c)Net National Product
- (d)Per Capita Real Income
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Official answer(d) Per Capita Real Income
Other questions on National Income & Economic Growth
Which of the following activities constitute real sector in the economy ? 1. Farmers harvesting their crops 2. Textile mills converting raw cotton into fabrics 3. A commercial bank lending money to a trading company 4. A corporate body issuing Rupee Denominated Bonds overseas Select the correct answer using the code given below :
- (a)1 and 2 only
- (b)2, 3 and 4 only
- (c)1, 3 and 4 only
- (d)1, 2, 3 and 4
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Official answer(a) 1 and 2 only
Consider the following statements : Other things remaining unchanged, market demand for a good might increase if 1. price of its substitute increases 2. price of its complement increases 3. the good is an inferior good and income of the consumers increases 4. its price falls Which of the above statements are correct?
- (a)1 and 4 only
- (b)2, 3 and 4
- (c)1, 3 and 4
- (d)1, 2 and 3
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Official answer(a) 1 and 4 only
With reference to Indian economy, demand-pull inflation can be caused/increased by which of the following? 1. Expansionary policies 2. Fiscal stimulus 3. Inflation-indexing wages 4. Higher purchasing power 5. Rising interest rates Select the correct answer using the code given below.
- (a)1, 2 and 4 only
- (b)3, 4 and 5 only
- (c)1, 2, 3 and 5 only
- (d)1, 2, 3, 4 and 5
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Official answer(a) 1, 2 and 4 only
Consider the following statements : 1. Purchasing Power Parity (PPP) exchange rates are calculated by comparing the prices of the same basket of goods and services in different countries. 2. In terms of PPP dollars, India is the sixth largest economy in the world. Which of the statements given above is/are correct?
- (a)1 only
- (b)2 only
- (c)Both 1 and 2
- (d)Neither 1 nor 2
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Official answer(a) 1 only
If a commodity is provided free to the public by the Government, then
- (a)the opportunity cost is zero.
- (b)the opportunity cost is ignored.
- (c)the opportunity cost is transferred from the consumers of the product to the tax-paying public.
- (d)the opportunity cost is transferred from the consumers of the product to the Government.
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Official answer(c) the opportunity cost is transferred from the consumers of the product to the tax-paying public.
Increase in absolute and per capita real GNP do not connote a higher level of economic development, if
- (a)industrial output fails to keep pace with agricultural output.
- (b)agricultural output fails to keep pace with industrial output.
- (c)poverty and unemployment increase.
- (d)imports grow faster than exports.
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Official answer(c) poverty and unemployment increase.