upsc designed ppt

1. Which of the following activities is part of
India’s GDP?
1. Activities in Indian embassies and consulates
in other countries
2. Air India services between two different
countries
3. Economic activities of residents of India in
international waters
4. Purchase of movie tickets by foreigners in
India
Select the correct answer using the code given
below: (a) 1 only (b) 1, 2 & 3 only (c) 3 & 4 only
(d) All of the above

2. • 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 total of final consumption and investment expenditure by
government, private and household sector
• 4. It is the income received by the four factors of production
Select the correct answer using the code given below:
(a) 1 & 2 only
(b) (b) 1, 2 & 3 only
(c) (c) 1, 2 & 4 only
(d) (d) All of the above

3. • Consider the following statements
• 1. Capital goods are final goods and are not used as an input
• 2. Intermediate goods are capital goods
Select the correct answer using the code given below:
(a) 1 only
(b) 2 only
(c) Both 1 & 2
(d) Neither 1 nor 2

4. • Which of the following are not counted in India’s GDP calculation?
• 1. Informal sector activity
• 2. Re-exports
Select the correct answer using the code given below:
(a) 1 only
(b) 2 only
(c) Both 1 & 2
(d) Neither 1 nor 2

5. • If India is experiencing economic growth, then which of the following statements
must hold true:
• 1. Real GDP will increase
• 2. Nominal GDP will increase
• 3. Rate of growth of real GDP will increase
• 4. Increase in employment generation
Select the correct answer using the code given below:
(a) 1 only
(b) 1 & 2 only
(c) 2 & 3 only
(d) 1 & 4 only

6. • If a country is experiencing recession, then which of the following must be true:
(a) Decrease in real GDP
(b) Decrease in nominal GDP
(c) Decrease in rate of growth of GDP
(d) All of the above

7. • The National Income of a country (India) is equal to which of the following:
• (a) Gross National Product (GNP)
• (b) Net National Product at Market Prices
• (c) Net National Product at Factor Cost
• (d) Income going to the household sector

8. • 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
Select the correct answer using the code given below:
(a) 1 & 3 only
(b) 1 & 4 only
(c) 2 & 3 only
(d) 2, 3 & 4 only

9. • Consider the following statements:
• 1. Product taxes and production taxes both are included as part of GDP
calculation
• 2. Net Factor Income from Abroad is equivalent to net of exports & imports
Select the correct answer using the code given below:
(a) 1 only
(b) 2 only
(c) Both 1 & 2
(d) Neither 1 nor 2

10. • Welfare of the people of a country is best represented by which of the following
parameter:
• (a) Per capita net national income at constant prices
• (b) Per capita net national income at current prices
• (c) Per capita GDP at constant prices
• (d) Per capita GDP at current prices

11. • There is a Chinese company doing business in India. The profit made by the
company will be part of:
• 1. India’s GDP
• 2. China’s GNP
• Select the correct answer using the code given below:
(a) 1 only
(b) 2 only
(c) Both 1 & 2
(d) Neither 1 nor 2

12. • Consider the following statements regarding Gross National Income (GNI)/GNP:
1. It includes production taxes
2. It includes transfer payment from rest of the world
Select the correct answer using the code given below:
(a) 1 only
(b) 2 only
(c) Both 1 & 2
(d) Neither 1 nor 2

13. • Which of the following constitutes investment in the economy?
1. Production of consumption goods
2. Production of capital goods
3. Production of services
4. Buying and selling of shares
Select the correct answer using the code given below:
(a) 1 & 2 only
(b) 2 only
(c) 2 & 4 only
(d) All of the above

14. • Consider the following statements:
1. Imported capital equipment are part of investment in Indian economy
2. Capital goods exported out of India are not part of India’s investment
Select the correct answer using the code given below:
(a) 1 only
(b) 2 only
(c) Both 1 & 2
(d) Neither 1 nor 2

15. • Which of the following statements could be true for a high savings rate in an
economy?
1. Higher investment
2. Higher consumption
3. Higher exports
Select the correct answer using the code given below:
(a) 1 & 2 only
(b) 1 & 3 only
(c) 2 & 3 only
(d) All of the above

16. • Which of the following are part of gross fixed capital formation:
1. Machinery and equipment
2. Construction of buildings and other infrastructure
3. Intellectual property rights
Select the correct answer using the code given below:
(a) 1 only
(b) 1 & 3 only
(c) 2 only
(d) All of the above

17. • Despite being a high saving economy, capital formation may not result in
significant increase in output due to:
(a) weak administrative machinery
(b) Illiteracy
(c) high population density
(d) high capital-output ratio

18. • Consider the following statements regarding Incremental Capital Output Ratio
(ICOR):
• 1. It shows how efficiently the new capital is being used to produce output
• 2. It is the extra unit of capital required to produce one additional unit of output
• 3. It is the extra unit of output produced from one additional unit of capital
• 4. It is the ratio of change in capital to change in output
Select the correct answer using the code given below:
(a) 1 only
(b) 1 & 2 only
(c) 1, 2 & 4 only
(d) 1, 3 & 4 only

19. • Capital formation in a country will lead to which of the following:
• 1. Increase in ICOR
• 2. Decrease in ICOR
• 3. Economic growth
Select the correct answer using the code given below:
(a) 1 & 3 only
(b) 2 & 3 only
(c) 3 only
(d) None of the above

20. • Consider the following statements:
1. Capital output ratio depends on governance, quality of labour, technology etc.
2. Economic output increases with decrease in capital output ratio
Select the correct answer using the code given below:
(a) 1 only
(b) 2 only
(c) Both 1 & 2
(d) Neither 1 nor 2