National Income

National income refers to:
a) Total income earned by all citizens
b) Income earned through exports
c) Total value of goods and services produced by a country
d) Income earned by the government only
✅ c) Total value of goods and services produced by a country

GDP stands for:
a) Gross Development Product
b) Gross Domestic Product
c) General Domestic Product
d) Government Domestic Product
✅ b) Gross Domestic Product

GNP includes:
a) Only domestic production
b) Domestic + net income from abroad
c) Only agricultural output
d) Exports only
✅ b) Domestic + net income from abroad

NNP at factor cost is also called:
a) GDP at market price
b) National Income
c) GNP at market price
d) Disposable Income
✅ b) National Income

GDP at market price =
a) NNP – depreciation
b) GNP + net indirect taxes
c) GDP at factor cost + net indirect taxes
d) GNP – income from abroad
✅ c) GDP at factor cost + net indirect taxes

Which is not included in national income?
a) Rent
b) Interest
c) Transfer payments
d) Wages
✅ c) Transfer payments

Which of the following is a transfer payment?
a) Salary
b) Pension
c) Rent
d) Profit
✅ b) Pension

Who calculates national income in India?
a) Finance Commission
b) RBI
c) NSO (MoSPI)
d) NITI Aayog
✅ c) NSO (MoSPI)

Which method is NOT used to calculate national income?
a) Product method
b) Income method
c) Expenditure method
d) Investment method
✅ d) Investment method

Per capita income is:
a) GDP / population
b) Total tax / working population
c) Income of employed population
d) Income of households
✅ a) GDP / population

Real national income is calculated at:
a) Current prices
b) Constant prices
c) Global prices
d) Wholesale prices
✅ b) Constant prices

The base year for India's national income calculation (as of FY24):
a) 2004–05
b) 2011–12
c) 2017–18
d) 2010–11
✅ b) 2011–12

GDP deflator =
a) CPI/WPI
b) Nominal GDP / Real GDP
c) Real GDP – Net tax
d) GNP – Depreciation
✅ b) Nominal GDP / Real GDP

The largest contributor to India’s GDP is:
a) Agriculture
b) Industry
c) Services
d) Manufacturing
✅ c) Services

As per CSO data, India’s GDP growth in FY 2023–24 was:
a) 6.0%
b) 6.8%
c) 7.3%
d) 8.1%
✅ c) 7.3%

GDP is the measure of:
a) Total government income
b) Total value of final goods and services
c) Inflation
d) Employment
✅ b) Total value of final goods and services

The value added method is also called:
a) Income method
b) Product method
c) Expenditure method
d) Depreciation method
✅ b) Product method

Nominal GDP is measured at:
a) Base year prices
b) Current prices
c) Market prices
d) Global prices
✅ b) Current prices

Real GDP =
a) GDP at market prices
b) GDP adjusted for inflation
c) GNP + imports
d) Exports – imports
✅ b) GDP adjusted for inflation

In India, agriculture contributes approximately ___ to GDP (2023–24):
a) 10%
b) 12%
c) 18%
d) 22%
✅ c) 18%

Depreciation is deducted from:
a) NNP
b) GNP
c) GDP
d) Gross values to get net values
✅ d) Gross values to get net values

Net factor income from abroad is:
a) Always positive
b) Always negative
c) Can be positive or negative
d) Ignored in GDP
✅ c) Can be positive or negative

The expenditure method includes:
a) Consumption + Investment + Government expenditure + (X – M)
b) Tax – subsidies
c) Exports only
d) Only consumption
✅ a) Consumption + Investment + Government expenditure + (X – M)

Disposable income =
a) Personal income – direct taxes
b) National income – tax
c) GNP – depreciation
d) Personal income + savings
✅ a) Personal income – direct taxes

Inflation leads to:
a) Increase in real income
b) Increase in GDP at constant price
c) Increase in nominal GDP
d) Decrease in per capita income
✅ c) Increase in nominal GDP

Which of the following is NOT included in GDP?
a) Construction
b) Black market income
c) Services
d) Agriculture
✅ b) Black market income

Sector-wise, GDP data is released by:
a) RBI
b) NSO
c) NITI Aayog
d) Economic Survey
✅ b) NSO

India's per capita income (2023–24 approx.):
a) ₹1.5 lakh
b) ₹1.8 lakh
c) ₹2.0 lakh
d) ₹2.1 lakh
✅ c) ₹2.0 lakh

Contribution of Bihar’s economy to national GDP is about:
a) 3%
b) 5%
c) 7%
d) 9%
✅ a) 3%

Which of the following contributes least to national income?
a) Service sector
b) Industry
c) Agriculture
d) Informal trade
✅ d) Informal trade

Net National Product at Market Price =
a) NNP at factor cost + Net indirect tax
b) GNP – depreciation
c) GDP – exports
d) Income – tax
✅ a) NNP at factor cost + Net indirect tax

Indirect taxes include:
a) Income Tax
b) Corporate Tax
c) GST
d) Property Tax
✅ c) GST

What is the "base year" used for?
a) Measuring inflation
b) Calculating fiscal deficit
c) Comparing real GDP
d) Adjusting tax slabs
✅ c) Comparing real GDP

The growth rate of per capita income =
a) GDP growth – population growth
b) GNP – depreciation
c) Tax – subsidy
d) CPI – WPI
✅ a) GDP growth – population growth

Which is not a component of national income?
a) Rent
b) Wages
c) Interest
d) Subsidy
✅ d) Subsidy

In the three-sector model, which sector is now dominant?
a) Agriculture
b) Industry
c) Services
d) Trade
✅ c) Services

GNP at factor cost =
a) GDP + Net factor income from abroad – indirect taxes + subsidies
b) GNP + depreciation
c) GNP – subsidies
d) GDP – depreciation
✅ a) GDP + Net factor income from abroad – indirect taxes + subsidies

Which sector is called the “Primary Sector”?
a) Agriculture
b) Banking
c) Manufacturing
d) Education
✅ a) Agriculture

"Tertiary sector" includes:
a) Mining
b) Transport
c) Manufacturing
d) Irrigation
✅ b) Transport

India’s GDP crossed $3 trillion mark in:
a) 2017
b) 2019
c) 2021
d) 2023
✅ d) 2023

Who prepares State Domestic Product (SDP) data?
a) RBI
b) State Finance Commission
c) Directorate of Economics and Statistics
d) Planning Board
✅ c) Directorate of Economics and Statistics

The difference between GNP and NNP is:
a) Net exports
b) Net indirect taxes
c) Depreciation
d) Personal income
✅ c) Depreciation

What does “factor cost” mean?
a) Market price + taxes
b) Cost of inputs
c) Cost excluding indirect taxes
d) Cost of machinery
✅ c) Cost excluding indirect taxes

In a growing economy, the largest share in NI should come from:
a) Agriculture
b) Industry
c) Services
d) Wages
✅ c) Services

If GDP grows but population grows faster, per capita income:
a) Increases
b) Remains same
c) Decreases
d) Doubles
✅ c) Decreases

Personal income includes:
a) Only wages
b) Income before tax and transfer
c) NI + Transfer payments – Corporate taxes
d) Disposable income
✅ c) NI + Transfer payments – Corporate taxes

What is double counting in GDP?
a) Counting exports twice
b) Counting intermediate goods
c) Counting taxes twice
d) None
✅ b) Counting intermediate goods

The most appropriate measure of economic welfare is:
a) GDP
b) GNP
c) NNP at factor cost
d) NNP at market price
✅ c) NNP at factor cost

India’s national income is measured annually by:
a) CSO
b) NITI Aayog
c) SEBI
d) Planning Commission
✅ a) CSO (now merged into NSO)

Increase in national income implies:
a) Price rise
b) Increase in population
c) Rise in production of goods/services
d) Fall in exports
✅ c) Rise in production of goods/services