National Income & Economic Growth

35 questions in Indian Economy.

Asked in 2000, 1999, 1998, 1997, 1996, 1995

2000 · Q94 Indian EconomyNational Income & Economic Growtheasy

In an open economy, the national income (Y) of the economy is: (C, I, G, X, M stand for Consumption, Investment, Government Expenditure, total exports and total imports respectively.)

(a)Y = C + I + G + X
(b)Y = C + I + G – X + M
(c)Y = C + I + G + (X – M)
(d)Y = C + I – G + X – M

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Official answer(c) Y = C + I + G + (X – M)

1999 · Q12 Indian EconomyNational Income & Economic Growthmoderate

Consider the following statements: Regional disparities in India are high and have been rising in recent years because 1. There is persistent investment over time only in select locales. 2. Some areas are agro-climatically less conducive to development. 3. Some areas continue to face little or no agrarian transformation and the consequent lack of social and economic opportunities. 4. Some areas have faced continuous political instability. Which of the above statements are correct?

(a)1, 2 and 3
(b)1, 3 and 4
(c)2, 3 and 4
(d)1, 2 and 4

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Official answer(a) 1, 2 and 3

1999 · Q95 Indian EconomyNational Income & Economic Growtheasy

Since 1980, the share of the tertiary sector in the total GDP of India has

(a)shown an increasing trend
(b)shown a decreasing trend
(c)remained constant
(d)been fluctuating

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Official answer(a) shown an increasing trend

1998 · Q17 Indian EconomyNational Income & Economic Growtheasy

A consumer is said to be in equilibrium, if

(a)he is able to fulfil his need with a given level of income
(b)he is able to live in full comforts with a given level of income
(c)he can fulfil his needs without consumption of certain items
(d)he is able to locate new sources of income

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Official answer(a) he is able to fulfil his need with a given level of income

1998 · Q20 Indian EconomyNational Income & Economic Growtheasy

The supply-side economics lays greater emphasis on the point of view of the

(a)producer
(b)global economy
(c)consumer
(d)middle-man

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Official answer(a) producer

1997 · Q5 Indian EconomyNational Income & Economic Growtheasy

The average rate of domestic savings (gross) for the Indian economy is currently estimated to be in the range of

(a)15 to 20 per cent
(b)20 to 25 per cent
(c)25 to 30 per cent
(d)30 to 35 per cent

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Official answer(b) 20 to 25 per cent

1997 · Q99 Indian EconomyNational Income & Economic Growtheasy

National Income is the

(a)Net National Product at market price
(b)Net National Product at factor cost
(c)Net Domestic Product at market price
(d)Net Domestic Product at factor cost

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Official answer(b) Net National Product at factor cost

1996 · Q70 Indian EconomyNational Income & Economic Growthmoderate

Assertion (A): Though India’s national income has gone up several fold since 1947, there has been no marked improvement in the per capita income level. Reason (R): Sizeable proportion of the population of India is still living below the poverty line. In the context of the above two statements which one of the following is correct?

(a)Both A and R are true and R is the correct explanation of A
(b)Both A and R are true but R is not a correct explanation of A
(c)A is true but R is false
(d)A is false but R is true

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Official answer(b) Both A and R are true but R is not a correct explanation of A

1995 · Q93 Indian EconomyNational Income & Economic Growtheasy

93. The main reason for low growth rate in India, in spite of high rate of savings and capital formation is

(a)high birth rate
(b)low level of foreign aid
(c)low capital / output ratio
(d)high capital / output ratio

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Official answer(d) high capital / output ratio

1995 · Q144 Indian EconomyNational Income & Economic Growthmoderate

Consider the diagram given below: (Pie-chart showing family expenditure with segments labelled T: Transport, Ec: Education of children, H: Housing, C: Clothing, F: Food, S: Savings, O: Others.) From the diagram shown it would be right to conclude that

(a)the family spent more than half the income on food and clothing
(b)the amount saved by the family was too little
(c)the family had no health problems
(d)the family managed to meet all the essential expenses out of the income earned

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Official answer(d) the family managed to meet all the essential expenses out of the income earned