Microtheme: National Income Accounting(GDP) —
11 questions asked in Prelims in the past.

1. [2019] 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
   • (a) 1 only
   • (b) 2 only
   • (c) Both 1 and 2
   • (d) Neither 1 nor 2
   Correct Answer: (A) 1 only
2. [2018] 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 unemployme crease.
   • (d) imports grow faster than exports.
   Correct Answer: (C) poverty and unemployme crease.
3. [2015] In the ‘Index of Eight Core Industries, which one of the following is given the highest weight?
   • (a) Coal Production
   • (b) Electricity generation
   • (c) Fertilizer production
   • (d) Steel production
   Correct Answer: (B) Electricity generation
4. [2015] With reference to Indian economy, consider the following statements :
   (1) The rate of growth of Real Gross Domestic product has steadily increased in the last decade.
   (2) The Gross Domestic product at market prices (in rupees) has steadily increased in the last decade.
   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
   Correct Answer: (B) 2 only
5. [2015] A decrease in tax to GDP ratio of a country indicates which of the following?
   (1) Slowing economic growth rate
   (2) Less equitable distribution of national income
   Select the correct answer using the code given below.
   • (a) 1 only
   • (b) 2 only
   • (c) Both 1 and 2
   • (d) Neither 1 nor 2
   Correct Answer: (A) 1 only
6. [2013] The national income of a country for a given period is equal to the
   • (a) total value of goods and services produced by the nationals
   • (b) sum of total consumption and investment expenditure
   • (c) sum of personal income of all individuals
   • (d) money value of final goods and services produced
   Correct Answer: (D) money value of final goods and services produced
7. [2012] In India the overall Index of Industrial Production, the Indices of Eight Core Industries have combined weight of 37.90%. Which of the following are among those Eight Core Industries? 1. Cement 2. Fertilizers 3. Natural Gas 4. Refinery products 5. Textiles Select the correct answer using the code given below:
   • (a) 1 and 5 only
   • (b) 2, 3 and 4 only
   • (c) 1, 2, 3 and 4 only
   • (d) 1, 2, 3, 4 and 5
   Correct Answer: (C) 1, 2, 3 and 4 only
8. [2011] In the context of Indian economy, consider the following statements:
   1. The growth rate of GDP has steadily increased in the last five years.
   2. The growth rate in per capita income has steadily increased in the last five years.
   • (a) 1 only
   • (b) 2 only
   • (c) Both 1 and 2
   • (d) Neither 1 nor 2
   Correct Answer: (D) Neither 1 nor 2
9. [2011] In terms of economy, the visit by foreign nationals to witness the XIX Commonwealth Games in India amounted to
   • (a) Export
   • (b) Import
   • (c) Production
   • (d) Consumption
   Correct Answer: (A) Export
10. [2010] With reference to India economy, consider the following statements:
    1. The Gross Domestic Product (GDP) has increased by four times in the last 10 years
    2. The percentage share of Public Sector in GDP has declined in the last 10 years
    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
    Correct Answer: (B) 2 only
11. [2008] Which of the following pairs about India’s economic indicator and agricultural production (all in rounded figures) are correctly matched?
    1. GDP per capita (current prices): Rs 37,000
    2. Rice: 180 million tons
    3. Wheat: 75 million tons.
    • (a) 1, 2 and 3
    • (b) 1 and 2 Only
    • (c) 2 and 3 Only
    • (d) 1 and 3 Only
    Correct Answer: (D) 1 and 3 Only