Practice Test

Q1) Population experts refer to the possible 'demographic bonus' that may accrue to India around 2016 A.D. They are refereeing to the phenomenon of Show Answer

Q2) Which of the following statement is not true of the Indian economy ? Show Answer

Q3) Which of the following point does not figure in the year Action plan formulated under the National population policy 2000 Show Answer

Q4) In India the workers in the organised sector are only _______percent of the total work force. Show Answer

Q5) Which of the following statements is false ? Show Answer

Q6) The long-term objectives of National Population Policy (NPP) 2000 is to : Show Answer

Q7) GNP is different from GDP as the former includes Show Answer

Q8) Comparison of GDP's does not give a clear picture of the relative development of countries. Which of the following is not an explanation for this Show Answer

Q9) Measured in the term of Purchasing Power Parity (PPP), India continues to be the 4th large country in the world. The first three positions are occupied by Show Answer

Q10) Which of the following is not one of the four important capabilities focused by the Human Development Reports of UNDP? Show Answer

Q11) In India, National Income is computed by Show Answer

Q12) Finance Ministry has introduced the concept of Outcome Budget from 2005. Under thIs , the monitoring of the outcomes will be the responsibility of Show Answer

Q13) The theory of Demographic Transition is not universally valid in the case of India because Show Answer

Q14) which of the following not a method of estimating national income Show Answer

Q15) The national income of a nation is the : Show Answer

Q16) The difference between the GNP and NNP is equal to the : Show Answer

Q17) Three states which HDI higher than China : Show Answer

Q18) National income is arrived at by adding to Net Domestic Product : Show Answer

Q19) The product method of calculating National income is otherwise known as : Show Answer

Q20) AS per Census 2011, which of the following registers the highest density in the country Show Answer

Q21) The most significant economic consequence of the 'greying' of the Indian population in the decades to come, will be: Show Answer

Q22) There is. in theory, justification for subsidizing merit goods because: Show Answer

Q23) According to 2011 census urban-rural population ratio was about - Show Answer

Q24) The largest source of National Income in India is- Show Answer

Q25) In its latest move, CSO has shifted the base year for national income estimates - Show Answer

Q26) UNDP has introduced a new Poverty Index known as- Show Answer

Q27) As per provisional Census 2011 statistics, child sex ratio in India (i.e. female children per 1000 male children) of age group 0-6 years stands at- Show Answer

Q28) Under Prime Minister's Integrated Urban Poverty Eradication Programme (PMIUPEP) those urban areas were included which had a population- Show Answer

Q29) Who was the census commissioner for the census 2011? Show Answer

Q30) A redistribution of income in country can be best brought about through Show Answer

Q31) A country is said to be in debt trap if Show Answer

Q32) In open economy , the national income (Y) of the economy is:
(C,I,G,X,M stand for Consumption , Investment, Government Expenditure, total export, and total imports, respectively) Show Answer

Q33) National Income is the Show Answer

Q34) One of the reasons for India's occupational structure remaining more or less the same over the year has been that Show Answer

Q35) Some time back, the Government of India, decided to delicense 'white goods'industry, 'white goods' include Show Answer

Q36) The growth rate of per capita income at current prices is higher than that of per capita income at constant prices, because the latter takes into account the rate of Show Answer

Q37) The main reason for low growth rate in India, in spite of high rate of savings and capital formation is Show Answer

Q38) The most appropriate measure of a country's economic growth is its Show Answer

Q39) Which of the following statement is correct ?
Show Answer

Q40) Which one among the following countries has the lowest GDP per capita ? Show Answer

Q41) The rate of growth of the tertiary sector has been Show Answer

Q42) The structural changes in the distribution of net domestic product in India indicate that Show Answer

Q43) To Which sector is maximum weight age assigned in the index of industrial production ? Show Answer

Q44) India is regarded as a country with "Demographic Dividend ". This is due to Show Answer

Q45) Which one among the following south Asian countries has the highest population density ? Show Answer

Q46) As per India's National Population Policy 2000, by which one of the following years is it our long-term objective to achive population stabilization? Show Answer

Q47) India Human Development Report does not give for each sample village : Show Answer

Q48) It is often argued that population growth is not merely a question of number but that of the age composition of population, This is because : Show Answer

Q49) Economic growth is usually coupled with Show Answer

Q50) __________does not contribute to economic development in India ? Show Answer

Q51) Under British rule, India lost its status of a manufacturing country due to Show Answer

Q52) Mixed economy means: Show Answer

Q53) socialistic pattern means Show Answer

Q54) Per capital income has been low in India because Show Answer

Q55) The 'Year of Great Divide' refers to Show Answer

Q56) Which of the following accounts for the high growth rate of population in India? Show Answer

Q57) India is said to be in the second stage of the demographic transition because Show Answer

Q58) Net National Product does not include Show Answer

Q59) Which indicators are used to calculate the Human Development Index (HDI)? Show Answer

Q60) Which of the following could assist economic growth in developing countries? Show Answer

Q61) GPD is likely to increase with: Show Answer

Q62) A higher GPD per capita may not mean that the quality of life has really improved because: Show Answer

Q63) Which of the following are characteristic of 'Public Goods '?
1) These are available to all without discrimination.
2) The enjoyment of one is of at the expenses of others.
3) The rich can be made to play for access to these goods .
Show Answer

Q64) Consider the following statement :
1) The Central Statistical Organisation (CSO) is responsible for calculating the consumer price indices for urban non-manual employees.
2) National sample Survey Organisation (NSSO) collects data for estimating national income.
3) NSSO collects rural retail price on monthly basis for calculating consumer Price Index
4) CSO conducts periodic economic census to collect data on unorganized enterprises.
Which of the following statement is/are correct ? Show Answer

Q65) Among the socio-economic factors responsible for the high birth rate in India we may include
1) large scale poverty
2) high morality rate of children of poor parents
3) prevalence of child marriage
4) adverse sex ration
Choose your answer from the following codes :
Show Answer

Q66) Which of the following are the main cause of slow rate of growth of per capita income in India ?
1) High capita output ratio
2) High rate of growth of population
3) High rate of capital formation
4) High level of fiscal, deficits
Show Answer

Q67) With reference to 'Indian 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 decline in the last 10 years
Which of the statements, given above is/are correct ?
Show Answer

Q68) Consider the following statements :
1 Between Census 1951 and Census 2001, the density of the population of India has increased more than three times.
2) Between Census 1951 and Census 2001, the annual growth rate (exponential) of the population of India has doubled.
which of the statements given above is/are correct ? Show Answer

Q69) Consider the following statements :
1) Infant mortality rate takes into account the death of infants within a month after birth.
2) Infant mortality rate is the number of infant deaths in a particular year per 100 lives birth during that year.
Which of the above statements is/are correct ? Show Answer

Q70) Consider the following statements :
1) India is the second country in the world to adopt a National Family planning Programe.
2) The National Population Policy Of India 2000 seeks to achieve replacement level of fertility by 2010 with a population of 111 crores.
3) Kerala is the first state in the India to achieve replacement level of fertility.
Which of the statement given above is/are correct ? Show Answer

Q71) Consider the following statements about the mega cities of India :
1) Population of each mega city is more than 5 million
2) All the mega cities are important sea ports
3) Megacities are either national or state capitals
Which of these statements are correct ? Show Answer

Q72) Consider the following specific stages of demographic transition associated with economic development :
1) Low birthrate with low death rate
2) High birthrate with high death rate
3) High birthrate with low death rate
Select the correct order of the above stages using the orders given below
Show Answer

Q73) Which factors are responsible for arresting economic development in India .
1) Long British rule
2) Shortage of investment
3) Backward social attitudes
4) Caste system Show Answer

Q74) India economy is developing economy as there is ?
1) Dominance of agriculture.
2) Huge unemployment
3) Low quality of human capital
4) Low per capita consumption
Show Answer

Q75) Estimation of national income in India are not accurate as there is :
1) illiteracy
2) non-monetised consumption
3) inflation
4) people holding multiple jobs Show Answer

Q76) Which of the following gives a correct picture of the share of various in economic growth in India over the years?
1) Primary sector-stagnant
2) Secondary sector-increasing
3) Tertiary sector-decreasing
Show Answer

Q77) Consider the following statement :
1) Human Development Report is an authoritative annual publication brought out by the World Bank.
2)It measures longevity by life expectancy at birth
3) Knowledge is measured by adult literacy rate
4) Standard of living by GDP per capita(US $ PPP)
Which of the following statements is not correct? Show Answer

Q78) 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.
3) The growth rate of GDP has steadily increased
Which of the statement given above is/are correct
Show Answer

Q79) Which is the correct definition of National Income ?
1) National Income means the total amount of money Govt. earns through direct tax collection.
2) It is the total value of stocks held by a country at a particular point of time.
3) This is the measure of goods and service produced during an account year without double counting . Show Answer

Q80) A dual economy means ;
1) The existence of black money and white money
2) The existence of agriculture and industry
3) The existence of commercial agricultural with subsistence farming
4) Modern industry and commercial agriculture co-existing with subsistence farming and traditional handicrafts
Show Answer

Q81) Assertion : Per capita income does not give a true picture of the economic growth of a country.

Reason : Per capita income can increase if there is a fall in the population of the country Show Answer

Q82) Assertion :India's GDP virtually doubled between 1990 and 2003
Reason : The share of primary and secondary sector has declined and that of tertiary sector has increased during this period Show Answer

Q83) Assertion : Estimation of national income constitutes sale of share .
Reason : Sale of share is a type of financial transaction . Show Answer

Q84) The term national income represent Show Answer

Q85) Consider the following statements
1) GDP is a better measure of national income that GNP.
2) GNP is always higher than GDP.
Which of the statement(s) given above is/are correct? Show Answer

Q86) Which of the following is not included in the estimates of
national income? Show Answer

Q87) Which arrangement of the following would show the correct sequence of demographical
transition as typically associated with economic development?
1) High birth rate with high death rate
2) Low birth rate with low death rate
3) High birth rate with low death rate
Select the correct answer using the codes given below Show Answer

Q88) Consider the following statements regarding the underdeveloped nature of the economy of India
1) Inequitable distribution of income
2) High unemployment in the economy.
3) Slow rate of increase in national income.
4) Slow rate of growth of road infrastructure
Which of the statements given above is/are correct? Show Answer

Q89) Which one of the following sectors of the Indian economy achieved the highest growth rate in terms of
contribution to the GDP since the adoption of the LPG model of economic development? Show Answer

Q90)
'Swabhiman Scheme' launched in India is associated with Show Answer

Q91) With reference to India, consider the following Central Acts
1) Import and Export control Act, 1947
2) Mining and Mineral Development (Regulation) Act, 1957
3) Customs Act, 1962
4) Indian Forest Act, 1927
Which of the above Acts has relevance to/bearing on the biodiversity conservation in the country? Show Answer

Q92) What percentage of the total population of the world resides in India, as estimated in the year 2011 ? Show Answer

Q93) Which one of the following services is included in the Services sector of Indian Economy? Show Answer

Q94) Which of the following is not a Public Sector Undertaking (PSU)/enterprises? Show Answer

Q95) Consider the following statements
1) In the last decade, the compounded Annual Growth Rate for the Indian Economy was above 10%
2) The share of service sector in the India's GDP is more than 60%
Which of the statements given above is/are correct? Show Answer

Q96) Which of the following services, of the Service sector of Indian Economy, attracts the highest FDI inflows in Last decade (2001-2011) ? Show Answer

Q97) Which of the following is the most populous state in India as per the provisional figures of census of India 2011? Show Answer

Q98) Consider the following
1) Finance and non-finance
2) Telecommunication
3) Computer software and hardware
4) Hospital and diagnostic centres/services
5) Construction activities
Which of the services sector given above are included in the "Top Five Services Sectors" of the Indian economy? Show Answer

Q99) Consider the following sectors of the Indian Economy with respect to share of employment
1) Agriculture sector
2) Industrial sector
3) Services sector
Arrange these sectors from the highest to lowest in the term of share of employment and select the correct answer using the codes given below Show Answer

Q100) Which one of the following sectors of the Indian Economy is prohibited from Foreign Direct Investments (FDIs)? Show Answer

Q101) Which one of the following services of the services sector in the Indian Economy contributed the highest percentage in the Gross Domestic Product at the Factor Cost in the last ten years? Show Answer

Q102) Tendulkar committee has estimated that in India the percentage of the population below poverty line is Show Answer

Q103) Human Poverty Index was introduced in the HDR of the year Show Answer

Q104) Consider the following statements
1) IDA was establishes on 27th April, 1945, Its basic objective is the provide loans for the correction of disequlilbrium in the balance of payments of an economy
2) IMF was established on 24th September, 1960 as a supplement institution of World Bank, which provides soft loans developing and underdeveloped countries
Which of the statements given above is/are correct ? Show Answer

Q105) Aadhar has huge potential for improving operations and delivery of services. Its potential application in various significant public services delivery and social sector programme is immense.
In this context, consider the following statements
1) The UID database can be used for the authentication of beneficiaries under the public distribution system.
2) It will help in enhancing the efficiency of social audit of programmes
3) Enable greater commitment towards government financing of public health and primary health care.
Which of the statements given above is/are correct ? Show Answer

Q106) Who of the following was/were economic critic/critics of colonialism in India?
1. Dadabhai Naoroji
2. G. Subramania Iyer
3. R. C. Dutt
Select the correct answer using the code given below. Show Answer

Q107) Amnesty International is Show Answer

Q108) With reference to the cultural history of India, the term 'Panchayatan' refers to Show Answer

Q109) Dualism in an economy means existence of two separate economic sectors within one country. It is divided by
1. different levels of development
2. different levels of technology
3. different patterns of demand
Select the answer from the codes given below: Show Answer

Q110) In the context of Indian economy, which of the following is/are the purpose/purposes of `Statutory Reserve Requirements’?
1. To enable the Central Bank to control the amount of advances the banks can create
2. To make the people’s deposits with banks safe and liquid.
3. To prevent the commercial banks from making excessive profits.
4. To force the banks to have sufficient vault cash to meet their day-to-day requirements
Select the correct answer using the code given below. Show Answer

Q111) With reference to an initiative called ‘The Economics of Ecosystems and Biodiversity (TEEB)’, which of the following statements is/are correct?
1. It is an initiative hosted by UNEP, IMF and World Economic Forum.
2. It is a global initiative that focuses on drawing attention to the economic benefits of biodiversity.
3. It presents an approach that can help decision-makers recognize, demonstrate and capture the value of ecosystems and biodiversity.
Select the correct answer using the code given below. Show Answer

Q112) Assertion-Adam Smith is regarded as Father of Economics
Reason-The ideas that were expounded by Adam Smith not only became the foundation of the classical school of economics, but also established him in history as the world's first free-market capitalist.
Select the correct answer using the code given below. Show Answer

Q113) Micro economics concerns itself with:
1. Individual labour markets
2. Economic Growth
3. Externalities arising from production and consumption.
4. Monetary / fiscal policy
5. Reasons for inflation, and unemployment
Select the correct answer using the codes given below: Show Answer

Q114) Macroeconomics deals with-
1. Supply and demand in individual markets
2. International trade and globalisation
3. Reasons for differences in living standards and economic growth between countries.
4. Government borrowing
5. Individual consumer behaviour
Select the correct answer using the codes given below: Show Answer

Q115) The term gold collar’ professions is associated with-
1. primary economic activities
2. secondary economic activities
3. tertiary activities economic activities
4. quaternary activities economic activities
5. quinary activities economic activities
Choose the correct answer using the codes given below- Show Answer

Q116) Identify the economic system from the description given below-
1. In this economic system ,the government controls all economic activity.
2. One example of this economic system is communism.
3. Such an economic system is less flexible than market economies and reacts slower to changes in consumer purchasing patterns and fluctuations in supply and demand.
Choose the correct answer using the codes given below- Show Answer

Q117) A socialist economy is an economy in which - Show Answer

Q118) Consider the following-
1. Marketable Surplus of Agriculture
2. Human Resources
3. Technical Know-How
4. General Education
5. Conditions in Foreign Trade
Which of the above is regarded as non- economic factors in economic development? Show Answer

Q119) Consider the following statements-
1. opportunity
2. capability
3. access
4. security
Which of the above attribute/s is involved in the process of inclusiveness or inclusive growth? Show Answer

Q120) Mixed Economy refers to
1. where agriculture and industry are given equal importance.
2. where public sector exists along with the private sector.
3. where globalisation is preferred with heavy dose of swadeshi in national economy.
4. where Centre and states are equal partners in economic planning and development.
The correct statement(s) is/are made with : Show Answer

Q121) Occupational structure refers to :
1. the number of workers living in a country.
2. the age-wise distribution of labour force.
3. the nature of different occupations in the economy.
4. the distribution of working population among different occupations.
The correct statement(s) is/are made with- Show Answer

Q122) Dualism in an economy means existence of two separate economic sectors within one country. It is divided by
1. different levels of development
2. different levels of technology
3. different patterns of demand
Select the answer from the codes given below: Show Answer

Q123) Which of the following is/are NOT correctly matched?
1. Black Money : Unaccounted money
2. Parallel Economy : Circulation of black money
3. Money Laundering : Transfer of black money
4. Hawala : Transfer of funds through llegal channels
Select the answer from the codes given below: Show Answer

Q124) Government officially adopted the 'mixed economic system' in India through:
(a) Industrial Policy Resolution, 1948
(b) Industrial Policy Resolution, 1956
(c) First Five Year Plan
(d) Second Five Year Plan
Select the answer from the codes given below: Show Answer

Q125) Assertion (A) : Government of India is determined to ensure that India remains increasingly attractive and investor friendly.
Reason (R): Significant changes have been made in the FDI policy regime in recent times.
Select the answer from the codes given below: Show Answer

Q126) An economy goes through a slowdown. Which of the following must be true?
1. Level of Effective Demand is coming down.
2. Growth of Effective Demand is coming down.
3. Inflation rate is going up.
4. Unemployment Rate is going up.
Select the correct answer from the codes given below: Show Answer

Q127) Which one of the following accounts for the difference between the National Product at Factor Cost and at Market Prices?
1. Only indirect taxes
2. Only subsidies
3. Indirect taxes + subsidies
4. Indirect taxes - subsidies
Select the answer from the codes given below: Show Answer

Q128) Which of the following is/are NOT the component(s) of Economic Development?
1. Economic growth plus social welfare
2. Progressive changes in socio- economic structure of an economy
3. Structural, Institutional and Technological progress
4. Conservation of environment
Select the answer from the codes given below: Show Answer

Q129) Which of the following is/are NOT correct about Purchasing Power Parity (PPP)?
1. It is an exchange rate systems.
2. Under PPP, exchange rates of various currencies are based on their demand and supply.
3. It is used for international comparison of GDP, per capita income, etc.
4. It is not used for actual foreign exchange transactions.
Select the answer from the codes given below: Show Answer

Q130) Which of the following is/are NOT the dimension(s) of the Gender Inequality Index (GII)?
1. Maternal Health
2. Standard of living
3. Empowerment
4. Labour Market
Select the answer from the codes given below: Show Answer

Q131) The index which combines social indicators of life expectancy and literacy with a measure of basic income adjusted to reflect purchasing power is called
1. Net Economic Welfare
2. Purchasing Power Index
3. Human Development Index
4. Welfare Index
Select the answer from the codes given below: Show Answer

Q132) The concept of Effective Demand is associated with the situation under which Show Answer

Q133) Liquidity Trap is associated with the situation when Show Answer

Q134) The capital goods sector in an economy may be adversely infected by:
1. deceleration in investment
2. import substitution
3. decline in the number of new projects
The correct statement(s) is/are made with: Show Answer

Q135) Economic Survey 2015-16 states that the country’s long run potential growth rate is still around 8-10% and realizing this potential requires a push on the front which includes
1. major investments in health and education of people to exploit India’s demographic dividend to optimal extent are required .
2. India cannot afford to neglect its agriculture.
3. the key to creating a more captive environment will be to address the exit problem which affects the Indian economy.
Select the correct answer using the codes given below: Show Answer

Q136) Consider these features :
1. Predominance of private sector
2. Laissez-Faire economic policy
3. All encompassing role of economic planning
This/ these all belong(s) to a capitalist economy- Show Answer

Q137) Consider the following facts about Health scenario in india
1. India ranks 143 among 190 countries in terms of per capita expenditure on health ($146 PPP in2011)
2. It has 122th position according to per capita government spending on health which is just about $144 PPP.
Select the correct answer from the codes given below: Show Answer

Q138) Consider the following statements-
1. India seems to have a disproportionately large share of inefficient firms with very low productivity and with little exit.
2. This lack of exit generates externalities that hurt the economy.
Select the correct answer using the codes given below: Show Answer

Q139) Consider the following statements on labour force participation-
1. Labour Force Participation Rate (LFPR) for rural areas is much greater than that for urban areas
2. Labour Force Participation Rate (LFPR) for women is significantly lower than that for males in
both rural and urban areas.
Select the correct answer using the codes given below: Show Answer

Q140) Inflation is the persistent increase in the average price of commodities. Consider the following factors which would increase inflation:
1. Deficit financing and increase in budgetary deficits
2. Decrease in direct taxes
3. Decrease in indirect taxes
4. Increase in Black money in the economy
5. Defective supply chain
Select the correct factor(s) on the basis of codes given below: Show Answer

Q141) Assertion-relatively low cost maternal and early life health and nutrition programs offer very high returns on investments.
Reason-Investments in maternal, nutrition and sanitation and enhancing their effectiveness by changing social norms can help India exploit its demographic dividend.
Select the answer from the codes given below: Show Answer

Q142) Assertion- social infrastructure scenario in the country reflects gaps in access to education, health and housing amenities.
Reason- Inclusive growth in India requires bridging gaps in educational outcomes and improved health attainments across the population.
Select the correct answer using the code given below. Show Answer

Q143) The dearness allowance of Government employees and wage contracts between labour and employer in India is based on - Show Answer

Q144) Expenses included in revenue expenditure are
1. Expenditure by the government on consumption of goods and services.
2. Expenditure on agricultural and industrial development, scientific research, education, health and social services.
3. Expenditure on defence and civil administration.
4. Expenditure on exports and external affairs.
Select the correct answer from the codes given below:
Show Answer

Q145) Consider the following
1. bank rate policy
2. cash reserve ratio
3. open market operations.
4. taxation
Of the above mentioned monetary measures used to control inflation include: Show Answer

Q146) Assertion-Higher inflation is caused by strong economic growth.
Reason- if aggregate demand in an economy expands faster than aggregate supply, we can expect to see a higher inflation rate.
Select the correct answer using the code given below. Show Answer

Q147) Consider the following statements-
1. opportunity
2. capability
3. access
4. security
Which of the above attribute/s is involved in the process of inclusiveness or inclusive growth? Show Answer

Q148) The balance of payments, also known as balance of international payments, encompasses all transactions between a country’s residents and its nonresidents . It involvies
1. goods, services and income;
2. financial claims on and liabilities to the rest of the world; and
3. transfers such as gifts.
Select the correct answer using the codes given below: Show Answer

Q149) Assertion-A country with high interest rates attracts foreign investors because interest rates in their country are less.
Reason-Demand for the rupee increases, resulting in appreciation in the value.
Select the answer from the codes given below: Show Answer

Q150) When a government has an economic policy to have a economy and not allow any external trade it is called Show Answer

Q151) Which among the following reflects the actual inflation that is borne by the individual? Show Answer

Q152) Assertion-Supply side policies can improve the competitiveness of the economy and help make exports more attractive.
Reason-if the government pursued a policy of privatisation and deregulation it may help to increase the efficiency of the economy because of the profit motive in the private sector.
Select the answer from the codes given below: Show Answer

Q153) Consider the following objectives about the Monopolistic and Restrictive Trade Practices Act, 1969
1. To prohibit monopolistic and restrictive trade practices (except by government)
2. To prevent concentration of economic power in few hands
3. To control the Monopolies
4. To protect consumer Interest
Select the correct answer using the code given below. Show Answer

Q154) Consider the following objectives about the Monopolistic and Restrictive Trade Practices Act, 1969
1. To prohibit monopolistic and restrictive trade practices (except by government)
2. To prevent concentration of economic power in few hands
3. To control the Monopolies
4. To protect consumer Interest
Select the correct answer using the code given below. Show Answer

Q155) GDP at factor cost is the sum of net value added by all producers within the country but it does not include Show Answer

Q156) Which of the following measure price change from the point of view of the seller? Show Answer

Q157) Identify the measure economic concept related to inflation from the description given below-
1. It is a measure of price inflation.
2. It is calculated by computing the ratio of nominal GDP to the real measure of GDP.
3. It is a measure of the level of prices of all new, domestically produced, final goods and services in an economy
Which of the above statements is/ are not true? Show Answer

Q158) Consider the following statement with regard to gross domestic product-
1. GDP at factor cost is the sum of net value added by all producers within the country
2. GDP at market price includes indirect taxes and excludes subsidies by the government.
3. Nominal GDP is the market value of goods and services produced in an economy, adjusted for inflation to reflect changes in real output
4. GDP deflator is calculated by dividing Nominal GDP by Real GDP and then multiplying by 100.
Which of the above statements is/ are not true? Show Answer

Q159) Perfect competition is a market structure in which
1. All firms sell an identical product;
2. All firms are price takers - they cannot control the market price of their product;
3. All firms have a relatively small market share;
Select the correct answer using the codes given below: Show Answer

Q160) Pump priming is the action taken to stimulate an economy, usually during a recessionary period, through
1. government spending
2. interest rate
3. tax reductions
Select the correct answer using the codes given below: Show Answer

Q161) Which of the following describes Ratchet Effect best? Show Answer

Q162) The formula C+ I + G + (X – M) is used in measuring national income. With which of the following methods in measuring national income? Show Answer