West Bengal Police Constable Special Mock Test

Indian Economy - National Income

1 / 10

1) Which of the following is NOT a component of national income?

A) Gross Domestic Product (GDP)

B) Personal Income

C) Gross National Product (GNP)

D) Net National Product (NNP)

2 / 10

2) Which of the following measures the total value of goods and services produced within a country in a specific time period?

A) Personal Income

B) Gross Domestic Product (GDP)

C) Gross National Product (GNP)

D) Net National Product (NNP)

3 / 10

3) Which of the following is the sum of GDP and net income from abroad?

A) Net National Product (NNP)

B) Personal Income

C) Gross National Product (GNP)

D) Gross Domestic Product (GDP)

4 / 10

4) What role does 'depreciation' play in the calculation of Net Domestic Product (NDP)?

A) It is subtracted from GDP to account for the wear and tear of capital goods.

B) It is added to GDP to reflect the appreciation of domestic assets.

C) It is used to measure the total value of new capital investments.

D) It is excluded from calculations as it does not affect physical output.

5 / 10

5) How does the concept of 'Purchasing Power Parity' (PPP) influence the comparison of GDP across countries?

A) PPP adjusts GDP for differences in price levels between countries, allowing for a more accurate comparison of economic productivity.

B) PPP increases the nominal GDP of developing countries to match that of developed countries.

C) PPP only affects the GDP of countries with fixed exchange rates.

D) PPP is irrelevant in GDP comparison as it deals with currency exchange rather than economic productivity.

6 / 10

6) In an economy, if the GNP is significantly higher than the GDP, what might this indicate?

A) A high level of income earned by nationals abroad compared to that earned by foreigners domestically.

B) A balanced level of imports and exports.

C) A substantial amount of investment in domestic industries by foreign entities.

D) A significant decrease in domestic production with stable foreign investments.

7 / 10

7) How is the concept of 'Value Added' significant in calculating GDP?

A) It denotes the total output produced by an economy before depreciation.

B) It measures the contribution of each sector to the GDP by subtracting intermediate consumption from the gross output.

C) It represents the net output of a sector after accounting for subsidies.

D) It indicates the total revenue generated by each sector.

8 / 10

8) Which sector contributes the highest share to the national income of India?

A) Manufacturing

B) Agriculture

C) Mining

D) Services

9 / 10

9) What is the formula for calculating GDP?

A) GDP = C + I + G + (M - X)

B) GDP = C + I + G + (X - M)

C) GDP = C + S + T + (M - X)

D) GDP = C + S + T + (X - M)

10 / 10

10) Why is the concept of 'Trade Multiplier' important in understanding the impact of foreign trade on national income?

A) It indicates the level of tariffs applied on imports

B) It measures the change in national income due to a change in trade balance

C) It shows the effect of foreign loans on domestic consumption

D) It measures the change in population due to trade policies

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Curriculum

Indian Economy (National Income জাতীয় আয়)

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