1. The term National Income represents:
(a) Gross National Product at market prices minus depreciation
(b) Gross National Product at market prices minus depreciation plus net factor income from abroad
(c) Gross National Product at market prices minus depreciation and indirect taxes plus subsidies
(d) Gross National Product at market prices minus net factor income from abroad
[I.A.S. (Pre) 2001]
Ans. (c) Gross National Product at market prices minus depreciation and indirect taxes plus subsidies
- National income is the total amount of money made in a year by the people in the country, either inside the country or abroad.
- It is the overall income made by the citizens of the country through production in a year.
|
2. National Income is :
(a) Net National Product at market prices
(b) Net National Product at factor cost
(c) Net Domestic Product at market prices
(d) Net Domestic Product at factor cost
[I.A.S. (Pre) 1997]
Ans. (b) Net National Product at factor cost
- National income is the total value of everything made by people living in a country over the course of one year, both inside and outside its borders.
- It is the total amount of money earned by citizens through production in a year.
|
3. The Net National Product at Market Price (N.N.P.MP) is :
(a) Gross National Product at Market Price – Net Income from abroad
(b) Gross National Product at Market Price – Transfer Payments
(c) Gross National Product at Market Price – Depreciation
(d) Gross National Product at Market Price – Subsidies
[R.A.S./ R.T.S. (Pre) 2021]
Ans. (c) Gross National Product at Market Price – Depreciation
- Net National Product at market price is the total value of all the goods and services made in a country in one year, after taking out taxes and other costs.
|
4. The National income of a country for a given period is equal to the :
(a) total value of goods and service 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
[I.A.S. (Pre) 2013]
Ans. (d) money value of final goods and services produced
- National income is the amount of money made from the goods and services produced by the people within a country in a year.
- This includes any income made from production work done in other countries too.
- It is the National Statistical Office of India’s job to calculate the national income of the country.
|
5. In an open economy, the national income (Y) of the economy is:
(C, I, G, X, and M stand for Consumption, Investment, Govt. Expenditure, total exports and total imports respectively)
(a) Y = C + I + G +X
(b) Y = C + I + G – X + M
(c) Y = C + I + G + (X – M)
(d) Y = C + I – G + X – M
[I.A.S. (Pre) 2000]
Ans. (c) Y = C + I + G + (X – M)
- National Income is equal to the sum of Consumption, Investment, Government, and the difference between Exports and Imports.
|
6. Which of the following is not a method to calculate the Gross Domestic Product (GDP)?
(a) Product method
(b) Diminishing cost method
(c) Income method
(d) Expenditure method
(e) None of the above / More than one of the above
[66th B.P.S.C. (Pre) (Re-Exam) 2020]
Ans. (b) Diminishing cost method
- The 3 methods which are used for calculating the Gross Domestic Product (GDP) are as follows :
1. Product method
2. Income method
Expenditure method
The diminishing cost method is not used to calculate the GDP.
|
7. Net National Product (NNP) and Gross National Product (GNP) are –
(a) Value measures of the National production
(b) Valuation of National Product at factor cost
(c) Value measures of Exports
(d) Both are different
[Uttarakhand P.C.S. (Pre) 2010]
Ans. (*)
- Net National Product (NNP) and Gross National Product (GNP) are two different ways of measuring how much a country produces in terms of money.
- GNP is the total money value of everything made by a country’s citizens in a year, even if they are living outside the country.
- NNP is the GNP minus any depreciation. Both (a) and (d) can be correct.
|
8. ‘Base year’ in National Income accounting means :
(a) The year whose income is being used to calculate the nominal GDP
(b) The year whose prices are being used to calculate the nominal GDP
(c) The year whose prices are being used to calculate the real GDP
(d) The year whose income is being used to calculate the real GDP
[R.A.S./ R.T.S. (Pre) 2021]
Ans. (c) The year whose prices are being used to calculate the real GDP
- The base year in National Income accounting is the year whose prices are used as a comparison to calculate the real GDP or real National Income.
- Currently, the base year is 2011-12.
- For example, if goods and services produced in 2021-22 are valued using the prices from 2011-12, it is referred to as National Income at constant prices.
|
9. One of the problems in calculating National Income in India is :
(a) underemployment
(b) inflation
(c) low level of savings
(d) non-organized sector
(e) None of the above / More than one of the above
Ans. (d) non-organized sector
- Calculating National Income in India is complicated because of the unorganized sector, which includes small scale units and the agriculture sector.
- These often don’t keep proper records of their workers and other factors of production.
- There are also other issues, such as lack of reliable data, double counting, non-monetary sectors, black money transactions, illegal income, and transfer payments (like pensions and scholarships). All these create difficulties in accurately defining the National Income.
|
10. Read the following statements and choose the correct option :
Statement I: Net Domestic Product = Gross Domestic Product + Depreciation.
Statement II: Per Capita Income = Net Domestic Product/ Total Population of the Nation.
Statement III: Net Domestic Product is the better metrics than Gross Domestic Product for comparing the economies of the world.
(a) Statement I, II and III all are true
(b) Only Statement I and II are true
(c) Only Statement II and III are true
(d) None of the above options is true
[Chhattisgarh P.C.S. (Pre) 2020]
Ans. (d) None of the above options is true
- NDP is an annual measure of a nation’s economic output calculated by taking away depreciation from GDP. This means that Statement I is incorrect and Statement II is also wrong.
- Per Capita Income is the average income earned by each person in a nation or region in a given year.
- This can be figured out by dividing the National Income (Net National Product) by the nation’s population.
- Only Statement III is correct since NDP is a better way of comparing economies around the world because it shows how much money is spent on keeping equipment up-to-date.
- An increase in depreciation can make GDP higher, but doesn’t mean that the social and economic well-being of the country has improved.
|
11. If over a given period of time, both prices and monetary income have been doubled, the real income will be –
(a) parallel increase of the slope
(b) good 1 intercept increase
(c) Unchanged
(d) Prices do not affect real income
[U.P.P.C.S. (Mains) 2004]
Ans. (c) Unchanged
- If money and prices both double in a certain time period, the real income will stay the same.
- This is because the increase in prices will be balanced out by the increase in income and vice versa, so it won’t have any effect on the real income.
|
12. Theoretically, if economic growth is conceptualized, which one of the following is not usually taken into consideration?
(a) Growth in Gross Domestic Product (GDP)
(b) Growth in financial aid from World Bank
(c) Growth in Gross National Product (GNP)
(d) Growth in Per Capita Gross National Product
[Jharkhand P.C.S. (Pre) 2013]
Ans. (b) Growth in financial aid from World Bank
- Economic Development takes into account the increase in Gross Domestic Product (GDP), Gross National Product (GNP) and Per Capita Gross National Product, but doesn’t consider the growth of World Bank’s financial aid.
|
13. Consider the following statements about Amartya Sen’s advices regarding priorities for Indian Economy :
1. It should be commodity-oriented
2. It should be people-oriented
3. Economic security to the poorest of the poor
4. Safeguards against integration of these with world
economy
Select the correct answer using the code given below:
(a) 1, 2 and 3 are correct
(b) 2, 3 and 4 are correct
(c) 1, 3 and 4 are correct
(d) 1, 2 and 4 are correct
[U.P.P.C.S. (Pre) 1999]
Ans. (b) 2, 3 and 4 are correct
- Amartya Sen is connected to welfare economics and he believes that the main goal of economic growth should be to improve people’s lives.
- Because of this, he has proposed statements 2, 3 and 4 in relation to the Indian economy.
|
14. The view that ‘Planning in India should, in future, pay more attention to the people than to commodities’ was given by :
(a) Amartya Sen
(b) Yashwant Sinha
(d) Manmohan Singh
[U.P. Lower Sub. (Spl.) (Pre) 2004]
Ans. (a) Amartya Sen
- Professor Amartya Sen, an Indian economist who won the Nobel Prize in Economics in 1998, argued that in the future, India should focus on people instead of products when making plans.
|
15. The Hindu rate of growth refers to the growth rate of:
(a) Per Capita Income
(b) National Income
(c) Population
(d) Literacy
[U.P.P.C.S. (Pre) 1996, 2006, U.P.P.C.S. (Mains) 2004]
Ans. (b) National Income
- In 1981, Professor Raj Krishna coined the phrase “Hindu rate of growth” while speaking at the American Economic Association.
- He believed that slow growth of India’s National Income/GDP was due to Hindu traditions that do not support development.
- This slow growth rate remained around 3.5% from the 1950s to the 1980s.
- Therefore, the “Hindu rate of growth” is linked to India’s National Income/GDP.
|
16. Hindu growth rate is related to :
(a) Money
(b) GDP
(c) Population
(d) GNP
(e) None of the above/More than one of the above
[65th B.P.S.C. (Pre) 2019]
Ans. (b) GDP
- In 1981, Professor Raj Krishna first used the term Hindu rate of growth to refer to India’s slow growth rate of National Income/GDP which was around 3.5% from the 1950s to the 1980s.
- He suggested that this slow growth rate was due to traditions and practices which were not conducive to development.
- Therefore, the Hindu rate of growth is associated with National Income/GDP.
|
17. Economic growth is usually coupled with :
(a) Deflation
(b) Inflation
(c) Stagflation
(d) Hyper-inflation
[I.A.S. (Pre) 2011]
Ans. (b) Inflation
- As economies grow, people have more money to spend on goods, which leads to an increase in demand.
- This is usually followed by an increase in prices, which is known as inflation.
|
18. The proportion of labour in GNP (Gross National Product) becomes low due to the following reason :
(a) Prices lag behind wages
(b) Profit lags behind prices
(c) Prices lag behind Profit
(d) Wages lag behind prices
[U.P.P.C.S. (Mains) 2008]
Ans. (d) Wages lag behind prices
- The Gross National Product has a low portion of labor due to wages not being high enough compared to prices. Prices in India tend to go up a lot, so even if wages increase, the gain for workers will be small.
|
19. Match List I with List II and select the correct answer using the codes given below the lists.
| List- I |
List-II |
| A. Economic Development |
1. Gross Domestic Product |
| B. Economic growth |
2. Environment |
| C. Sustainable Development |
3. Health |
| D. Quality of life |
4. Constructive change |
Code :
A B C D
(a) 1 2 3 4
(b) 4 2 3 1
(c) 3 4 1 2
(d) 4 1 2 3
[U.P. U.D.A./L.D.A. (Spl.) (Mains) 2010]
Ans. (d) 4 1 2 3
| The correct match of List I and List II is as follows – |
| Economic Development |
Constructive change |
| Economic growth |
Gross Domestic Product |
| Sustainable Development |
Environment |
| Quality of life |
Health |
|
20. 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 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
[I.A.S. (Pre) 2010]
Ans. (b) 2 only
- Statement (1) is wrong because India’s GDP hasn’t gone up four times in the last 10 years.
- Statement (2) is right because the amount of public sector in the GDP has gone down and the private sector has gone up.
- Therefore, the right answer is (b).
|
21. In the context of Indian economy, consider the following pairs:
(Term) (Most appropriate description)
1. Melt down Fall in stock prices
2. Recession Fall in growth rate
3. Slow down Fall in GDP
Which of the pairs given above is/are correctly matched?
(a) 1 only
(b) 2 and 3
(c) 1 and 3
(d) 1, 2 and 3
[I.A.S. (Pre) 2010]
Ans. (a) 1 only
- Meltdown is when stock markets and mortgages suddenly drop, recession is when the economy shrinks a lot, and slow down is when economic activities decrease.
|
22. Given below are two statements :
Assertion (A): The Indian economic policy is increasingly being criticized by insiders as well as outsiders.
Reason (R): The criticism is largely based on ideological differences.
Select the correct answer from the codes given below :
(a) Both A and R are true and R is the correct explanation of A.
(b) Both A and R are true, but R is NOT the correct explanation of A.
(c) A is true, but R is false.
(d) A is false, but R is true.
[Uttarakhand P.C.S. (Pre) 2002]
Ans. (a) Both A and R are true and R is the correct explanation of A.
- The New Economic Policy India adopted in 1991, which is based on liberalization, privatization, and globalization, continues to be criticized.
- Developed countries argue that it was not adopted at the right time, while people within India criticize it for turning to capitalism and straying away from socialism according to the Constitution.
- These criticisms come from different beliefs, so both statements A and R are true and R explains A correctly.
|
23. What was the main strategy of the new economic policy adopted in 1991?
(a) Liberalization
(b) Privatization
(c) Globalization
(d) All of the above
[U.P.P.C.S. (Mains) 2015]
Ans. (d) All of the above
- The New Economic Policy adopted in India in 1991, which is based on liberalization, privatization and globalization, is still being criticized by both developed countries and those within the country.
- The criticism mainly stems from ideological differences; both A and R are true and R explains A correctly.
|
24. Economic liberalization in India started with:
(a) substantial changes in industrial licensing policy
(b) the convertibility of Indian rupee
(c) doing away with procedural formalities for foreign direct investment
(d) significant reduction in tax rates
[I.A.S. (Pre) 2000]
Ans. (a) substantial changes in industrial licensing policy
- In 1991, India’s economic policies changed drastically when the Narsimha Rao government took power.
- On July 24, the new Industrial Policy was announced which abolished the need for licenses in all industries, except 18 specific ones.
|
25. Which one of the following is correct regarding stabilization and structural adjustment as two components of the new economic policy adopted in India?
(a) Stabilization is a gradual, multi-step process while structural adjustment is a quick adaptation process
(b) Structural adjustment is a gradual multi-step process, while stabilization is a quick adaptation process
(c) Stabilization and structural adjustment are very similar and complementary policies. It is difficult to separate one from the other
(d) Stabilization mainly deals with a set of policies which are to be implemented by the Central Government while structural adjustment is to be set in motion by the State Governments.
[I.A.S. (Pre) 1996]
Ans. (b) Structural adjustment is a gradual multi-step process, while stabilization is a quick adaptation process
- India recently adopted a new economic policy that has two main parts – stabilization and structural adjustment.
- Stabilization is about controlling the demand side of the economy, like inflation, taxes, and money coming in and out of the country.
- Structural adjustment is about changing the supply side of the economy, like trade, industry, investments, and finance.
- These two parts of the policy go together, but structural adjustment takes longer than stabilization. Stabilization is short-term, while structural adjustment is a long-term process.
|
26. Who is called the pioneer of liberalization of the Indian Economy?
(a) Dr. Manmohan Singh
(b) P.V. Narsimha Rao
(c) Dr. Bimal Jalan
(d) P. Chidambaram
[M.P.P.C.S. (Pre) 2008]
Ans. (a) Dr. Manmohan Singh
- In 1991, Dr. Manmohan Singh, who was India’s Finance Minister at the time, began the process of making India’s economy more open. Because of this, he is often referred to as the “Pioneer of liberalization of the Indian Economy”.
|
27. One of the reasons for India’s occupational structure remaining more or less the same over the years has been that:
(a) investment pattern has been directed towards capital-intensive industries
(b) productivity in agriculture has been high enough to induce people to stay with agriculture
(c) ceiling on land holdings has enabled more people to own land and hence their preference to stay with agriculture
(d) people are largely unaware of the significance of the transition from agriculture to industry for economic development
[I.A.S. (Pre) 1995]
Ans. (a) investment pattern has been directed towards capital-intensive industries
- In India, even though the GDP has increased a lot and the primary, secondary and tertiary sectors have changed, the occupations of people have stayed the same.
- This is because investment has been focused on capital-intensive industries.
- This has been criticised since it has caused the large-scale capital sector to benefit while the small-scale and cottage industries have not grown.
- The large-scale industries require a lot of money, meaning they do not create many jobs.
|
28. Which among the following is NOT a major factor of economic growth?
(a) Accumulation of capital and reforms in technology
(b) Change in population
(c) Division of labour in specialised activities
(d) Technocrats and Bureaucrats
[U.P.P.C.S. (Pre) 2021]
Ans. (d) Technocrats and Bureaucrats
- Natural resources, physical capital or infrastructure, population or labour, human capital and technology are the main things that help an economy grow.
- Technocrats and bureaucrats are not important for economic growth, so option (d) is the right answer.
|
29. The most appropriate measure of a country’s economic growth is its –
(a) Gross Domestic Product (GDP)
(b) Net Domestic Product (NDP)
(c) Net National Product (NNP)
(d) Per Capita Product (PCP)
[U.P.P.C.S. (Pre) 2013, U.P. Lower Sub. (Pre) 2013, Chhattisgarh P.C.S. (Pre) 2015, I.A.S. (Pre) 2001]
Ans. (d) Per Capita Product (PCP)
- The best way to measure a country’s economic growth is by looking at its Per Capita Real Income or Per Capita Net National Product.
- This can show a country’s standard of living and give a more accurate indication of economic progress.
|
30. The standard of living in a country is represented by :
(a) Poverty Ratio
(b) Per Capita Income
(c) National Income
(d) Unemployment Rate
[U.P.P.C.S. (Mains) 2013]
Ans. (b) Per Capita Income
- The best way to measure the economic growth of a nation is to look at its Per Capita Real Income or Per Capita Net National Product.
- It is used to measure how well off the country is, which makes it a great way to measure economic growth.
|
31. 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:
(a) growth of population
(b) increase in price level
(c) growth of money supply
(d) increase in the wage rate
[I.A.S. (Pre) 2000]
Ans. (b) increase in price level
- Per Capita Income at constant prices takes out the effects of inflation (rising prices) from the Per Capita Income at current prices.
- The rate of increase in Per Capita Income at current prices will be greater than the growth rate of Per Capita Income at constant prices, and this difference will equal the rate of inflation or rising prices.
|
32. That the Per Capita Income in India was Rs. 20 in 1867-68, was ascertained for the first time by :
(a) M.G. Ranade
(b) Sir W. Hunter
(c) R.C. Dutta
(d) Dadabhai Naoroji
[I.A.S. (Pre) 2000, U.P.P.C.S. (Pre) 2007, U.P.P.C.S. (Mains) 2013]
Ans. (d) Dadabhai Naoroji
- Dadabhai Naoroji was the first to calculate India’s total income in 1867-68.
- His calculation showed that the average amount of money earned by each person in India was Rs. 20.
|
33. Who was the chairman of the National Income Committee appointed by the Government of India in 1949?
(a) C.R. Rao
(b) P.C. Mahalanobis
(c) V. K. R.V. Rao
(d) K. N. Raj
[U.P.P.C.S. (Mains) 2015]
Ans. (b) P.C. Mahalanobis
- The Government of India appointed a National Income Committee in 1949, and it was led by Prof. P.C. Mahalanobis. Prof. D.R. Gadgil and Dr. V.K.R.V. Rao were also part of this committee.
|
34. The economist who for the first time scientifically determined National Income in India :
(a) D.R. Gadgil
(b) V.K.R.V. Rao
(c) Manmohan Singh
(d) Y.V. Alagh
(e) None of the above/More than one of the above
[60th to 62nd B.P.S.C. (Pre) 2016]
Ans. (b) V.K.R.V. Rao
- Dadabhai Naoroji was the first person to try and figure out India’s National Income in 1867-68.
- Dr. V.K.R.V. Rao was the first to accurately determine it in 1931-32.
|
35. In the gone by decade of the 90s the highest rate of growth of GDP was obtained in which of the following years:
(a) 1993-94
(b) 1995-96
(c) 1996-97
(d) 1999-2000
[U.P.P.C.S. (Pre) 2002, U.P. Lower Sub. (Spl.) (Pre) 2002, 2003]
Ans. (d) 1999-2000
- The Economic Survey 2020-21 and 2021-22 states that the years with the highest growth rate in GDP/GNI (Gross National Income at constant prices) over the past three decades (1990-2000, 2000-2010 and 2010-2020) are 1999-2000, 1996-97, 1995-96, 2007-08, 2005-06, 2006-07, 2010-11, 2016-17, 2015-16 and 2021-22 (First Advance Estimates).
- According to the Second Advance Estimates of National Income 2021-22, the GDP and GNI growth rate in 2021-22 (at 2011-12 Prices) is 8.9% and 8.7% respectively.
- The GDP growth rate in 2021-22 (1st A.E.) is estimated at 9.2%.
|
36. Indian Economy has witnessed highest growth rate in the year :
(a) 2003-04
(b) 2004-05
(c) 2005-06
(d) 2006-07
[U.P.P.C.S. (Pre) 2008, U.P.R.O./A.R.O. (Mains) 2013]
Ans. (d) 2006-07
- Option (d) is the correct answer according to the 2011-12 series data shown in the 2021-22 Economic Survey.
|
37. Which of the following offices or institutes releases data of the National Income in India?
(a) NSSO
(b) NITI Aayog
(c) CSO
(d) Prime Minister’s Office
(e) None of the above / More than one of the above
[66th B.P.S.C. (Pre) (Re-Exam) 2020]
Ans. (e) None of the above / More than one of the above
- In India, the Central Statistical Office (CSO) was created in 1951 to estimate and publish National Income data.
- In 2019, the Central Statistical Office (CSO) and the National Sample Survey Office (NSSO) combined to form the National Statistical Office (NSO) which is now responsible for estimating and releasing National Income data.
|
38. In India National Income is estimated by –
(a) Planning Commission
(b) Central Statistical Organisation
(c) Indian Statistical Organisation
(d) National Sample Survey Organisation
[U.P.P.C.S. (Pre) 1995, 2006, U.P.P.C.S. (Mains) 2006, Uttarakhand P.C.S. (Pre) 2010]
Ans. (*)
- In India, the National Income used to be calculated and reported by the Central Statistical Office (CSO), which was founded in 1951.
- Now, the National Statistical Office (NSO) is responsible for calculating and releasing data on the National Income.
- This office was set up when the CSO and the National Sample Survey Office (NSSO) merged together in 2019.
|
39. The National Income of India is estimated by :
(a) National Sample Survey Organisation
(b) Ministry of Finance
(c) Reserve Bank of India
(d) Central Statistical Organisation
[U.P.P.C.S. (Mains) 2012]
Ans. (*)
- In India, the Central Statistical Organization (C.S.O.) makes national income estimates every year.
- They also release an annual white paper on these estimates.
|
40. In India, National Income is computed by which of the following?
(a) Planning Commission
(b) Ministry of Finance
(c) Central Statistical Organisation
(d) Reserve Bank of India
[M.P.P.C.S. (Pre) 2012, U.P. P.C.S. (Pre) 1995, Jharkhand P. C.S. (Pre) 2003, U.P. Lower Sub. (Pre) 2004, U.P. P.C.S. (Mains) 2008, 2010]
Ans. (*)
- In India, the Central Statistical Office (CSO), which was established in 1951, used to calculate and announce the National Income.
- Now, the National Statistical Office (NSO) – which is the result of the merger of the Central Statistical Office (CSO) and the National Sample Survey Office (NSSO) in 2019 – does this job.
|
41. In India which agency is entrusted with the collection of data of capital formation?
(a) RBI and Central Statistical Organisation
(b) RBI and SBI
(c) RBI and all other Commercial Banks
(d) Central Statistical Organisation and National Sample Survey
[U.P. Lower Sub. (Pre) 2008]
Ans. (a) RBI and Central Statistical Organisation
- The Reserve Bank of India and National Statistical Office (formerly CSO) are responsible for collecting data on Capital Formation in India.
- The K.N. Raj Committee (created in 1981) said the RBI should make estimates for private companies and financial saving (except for life insurance, pension funds, etc.) of households.
- The CSO (now NSO) should make estimates for all other sectors and components, as well as the total domestic saving.
|
42. Indicate the vital change in the measurement of the National Income of India recently :
(a) Both the base year and calculation method have changed.
(c) Calculation has changed from factor cost to market prices.
(d) Calculation has changed from current prices to constant prices.
[R.A.S./R.T.S. (Pre) (Re-Exam) 2013*]
Ans. (a) Both the base year and calculation method have changed.
- In 2015, the Central Statistics Office (CSO) changed the GDP series to use 2011-12 as the base year instead of 2004-05.
- The CSO no longer valued industry-wise estimates as GDP at factor cost, but as Gross Value Added (GVA) at basic prices, which follows the guidelines of the United Nations System of National Accounts (UNSNA) 2008, instead of the UNSNA 1994 template.
- Thus, option (a) is the correct answer.
|
.
43. In new GDP data, base year has been changed from 2004-05 to :
(a) 2011-2012
(b) 2010-2011
(c) 2008-2009
(d) 2007-2008
[U.P.P.C.S. (Mains) 2015]
Ans. (a) 2011-2012
- In 2015, the Central Statistical Office (CSO) updated the Gross Domestic Product (GDP) series to use 2011-12 as the base year.
- This new series used Gross Value Added (GVA) at basic prices instead of GDP at factor cost following the guidelines of the United Nations’ System of National Accounts (UNSNA) 2008, replacing the old UNSNA 1994 template.
- Therefore, option (a) is the right answer.
|
44. At present (2015) which of the following base year is being used for estimation of National Income in India?
(a) 2004-05
(b) 2001-02
(c) 2011-12
(d) 2007-08
[U.P.P.C.S. (Mains) 2016]
Ans. (c) 2011-12
- In 2015, the Central Statistics Office (CSO) changed the Gross Domestic Product (GDP) series so that it used 2011-12 as the base year for national accounts.
- The CSO got rid of GDP at factor cost, and instead followed the international practice of using Gross Value Added (GVA) at basic prices.
- The new series followed the guidelines of the United Nations’ System of National Accounts (UNSNA) 2008, replacing the UNSNA 1994 template.
- Therefore, option (a) is the correct answer.
|
45. In India for estimation of GDP at constant prices, at present the base year is :
(a) 1999-2000
(b) 2000-2001
(c) 2002-2003
(d) 2006-2007
[U.P.P.C.S. (Pre) 2009]
Ans. (a) 1999-2000
- When the question was asked, the CSO took 1999-2000 as the starting point for calculating the Gross Domestic Product with no changes in prices.
|
46. Which of the following is the correct base year for measuring national income in India ?
(a) 2000-01
(b) 2001-02
(c) 2004-05
(d) 2005-06
[U.P. U.D.A./L.D.A. (Spl.) (Pre) 2010]
Ans. (c) 2004-05
- In India, the National Income was estimated for the year 2004-2005.
|
47. The new GDP series released by the CSO in February, 1999 is with reference to base prices of:
(a) 1991-92
(b) 1992-93
(c) 1993-94
(d) 1994-95
[I.A.S. (Pre) 2000, U.P. P.C.S. (Mains) 2004]
Ans. (c) 1993-94
- The Central Statistics Office (CSO) released a new Gross Domestic Product (GDP) report in February 1999 that used 1993-94 prices as the reference.
- Currently, the base year for estimating National Income is 2011-12.
|
48. Which one of the following is a sign of economic growth?
(a) An increase in National Income at constant prices during a year.
(b) A sustained increase in real Per Capita Income.
(c) An increase in National Income at current prices over time.
(d) An increase in National Income along with increase in population.
Ans.(*)
- The estimated per capita income for 2020-21 (first revised estimates) and 2021-22 (second advanced estimates) at current prices is Rs. 126855 and Rs. 149848 respectively.
- The estimated per capita income for 2020-21 (first revised estimates) and 2021-22 (second advanced estimates) at 2011-12 prices is Rs. 85110 and Rs. 91723, respectively, for 2020-21 (1st R.E.) and 2021-22
(2nd A.E.).
|
49. In the year 2013-14 in India, Per Capita Net National Income at current prices and factor cost was –
(a) Rs. 73,450
(b) Rs. 72, 580
(c) Rs. 74,380
(d) Rs. 71, 628
(e) None of these
[Chhattisgarh P.C.S. (Pre) 2015]
Ans. (e) None of these
- According to the Economic Survey 2021-22, the amount of money earned per person in India in 2013-14 was Rs. 79118 (as estimated by the new series).
|
50. In which year the rate of growth of India’s Per Capita Income at constant prices was the highest during the period 1951-52 to 2015-16?
(a) 2015-16
(b) 2010-11
(c) 2007-08
(d) 2014-15
[63rd B.P.S.C. (Pre) 2017, R.A.S./R.T.S. (Pre) 2016]
Ans. (c) 2007-08
- According to the 2004-05 series, option (c) was the right answer. According to the Economic Survey 2020-21, India had the highest growth rate for Per Capita Income in 2007-08 (8.6%).
- The next highest growth rates were in 2010-11 (8.3%), 2006-07 (7.6%) and 2005-06 (7.5%). For the 2011-12 series, the highest growth rate was in 2021-22 (8.4%) and the highest growth rate among the given years was 2015-16 (6.7%).
- According to the Second Advance Estimates of Annual National Income 2021-22, the Per Capita Income growth rate for 2020-21 (1st R.E.) was -9.7% and -4.0% at constant and current prices respectively, and for 2021-22 (2nd A.E.) it was 7.8% and 18.1% respectively.
|
51. In the year 2010-11 (at 2004-05 prices), which of the following is the Per Capita Income in India?
(a) Rs. 30,525
(b) Rs. 33,626
(c) Rs. 34,443
(d) Rs. 35,993
[U.P.U.D.A./L.D.A. (Pre) 2013]
Ans. (d) Rs. 35,993
- According to the Quick Estimates of 2010-11, the average income per person in India was Rs. 35993 (in 2004-05 prices).
- However, according to the Economic Survey of 2020-21, the average income per person in 2010-11 was Rs. 39270 (in 2004-05 prices) and the Economic Survey of 2021-22 said that the average income per person in 2010-11 was Rs. 62170
|
52. In the year, 1991-92, the Per Capita Annual Income in India was about :
(a) 4,500
(b) 5,500
(c) 7,500
(d) 10,500
[M.P.P.C.S. (Pre) 1994]
Ans. (c) 7,500
- According to the Economic Survey 2021-22, the average amount of money earned in India in 1991-92 was Rs. 6835.
- Therefore, the correct answer is option (c).
|
53. 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.
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
[I.A.S. (Pre) 2011]
Ans. (d) Neither 1 nor 2
- For the five years before the question period, the Economic Survey 2020-21 showed that the growth rates in Gross National Income (GNI) and Per Capita Income (PCI) were not constantly increasing.
- The Economic Survey 2021-22 showed that the growth rates in GNI, GVA and PCI for the last five years at constant prices (2011-12) were 6.9%, 6.2% and 5.5% respectively.
- Therefore, option D is the correct answer.
|
54. 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
[I.A.S. (Pre) 2015]
Ans. (b) 2 only
- The growth rate of Real Gross Domestic Product went down during the 2008 recession and the following years.
- This makes Statement 1 incorrect. During the 2010-2020 decade, the growth rate of Real GDP has gone up and down.
- GDP at market prices has increased every year since the last decade, so Statement 2 is correct for the question period.
- However, due to the COVID-19 pandemic, the GDP growth rate was negative in 2020-21.
- Therefore, option (d) would be the correct answer for the present situation.
|
55. The annual growth rate of the Indian Economy at 1999-2000 prices during 2005-2006 has been estimated between :
(a) 8 to 9 per cent
(b) 7 to 8 per cent
(c) 6 to 7 per cent
(d) 5 to 6 per cent
[U.P.P.C.S. (Pre) 2001, 2003, 2006, U.P.P.C.S. (Mains) 2014, U.P.P.S.C. (R.I.) 2014, U.P.U.D.A./L.D.A. (Pre) 2002]
Ans. (a) 8 to 9 per cent
- The initial growth rate of the Gross Domestic Product (GDP) for the year 1999-2000 was 8.1%, but it was later revised to 8.4%. In 2005-06, the growth rate was further increased to 9.5%.
- According to the Second Advance Estimates of Annual National Income 2021-22, the growth of Real GDP at 2011-12 prices is estimated at 8.9% in 2021-22 compared to a decrease of 6.6% in 2020-21.
- The GVA at basic prices is also expected to grow at 8.3% compared to a decrease of 4.8% in 2020-21.
|
56. The expected GDP growth rate for 1998-99 is :
(a) 5.5%
(b) 5.6%
(c) 5.7%
(d) 6.5%
[U.P.P.C.S. (Pre) 1999, U.P.P.C.S. (Pre) 1997, U.P.P.C.S. (Pre) 2000, U.P. Lower Sub. (Spl.) (Pre) 2002, 2003, U.P.P.C.S. (Mains) 2003, U.P.P.C.S. (Pre) 2005, U.P.P.C.S. (Mains) 2005]
Ans. (d) 6.5%
- In 1998-99, the growth rate of Gross Domestic Product was 6.5% (based on 1993-94 prices).
- This increased to 6.7% according to revised data (based on 2004-05 prices).
- In 2021-22, the GDP growth rate was 8.9% (based on 2011-12 prices) and 19.4% at current prices.
- In 2020-21, growth in GDP was negative at -6.6% (based on constant prices) and -1.4% (based on current prices).
- The Economic Survey 2021-22 estimates that the GDP growth rate in 2021-22 will be 9.2%.
|
57. In India Gross Domestic Product growth rate increased from 4.5 percent in 2012-13 to 4.7 percent in 2013-14, because of–
(a) High growth rate in services sector
(b) High growth rate in manufacturing sector
(c) High growth rate in agriculture & allied sector
(d) All of the above
(e) None of these
[Chhattisgarh P.C.S. (Pre) 2014]
Ans. (c) High growth rate in agriculture & allied sector
- The Economic Survey in 2013-14 showed that India’s Gross Domestic Product increased from 4.5% to 4.7%.
- This was mainly thanks to the high growth rate of the agriculture and related sectors. The favourable monsoon brought about a 4.7% growth for this sector compared to the 1.4% of the previous year.
- In 2021-22, the growth rate of the agriculture and allied sector is estimated to stay the same as 2020-21 at 3.3%.
- Agriculture was the only sector to show positive growth during the COVID-19 period.
|
58. Which of the following sub-sectors has experienced a negative growth rate in 2009-10 over 2008-09?
(a) Agriculture and Allied Sectors
(b) Construction
(c) Mining and Quarrying
(d) Electricity, Gas and Water Supply
[U.P.R.O./A.R.O. (Mains) 2013]
Ans. (*)
- The Economic Survey for 2021-22 and the Second Advance Estimates of Annual National Income 2021-22 (released by the NSO on 28 February, 2022) show that in 2020-21 and 2021-22 there was positive growth for each sub-sector compared to the year 2008-09.
- The growth rate (in percentage) of the different sub-sectors (Agriculture, Forestry and Fishing, Mining and Quarrying, Manufacturing, Electricity, Gas, Water Supply, Construction, Trade, Hotels, Transport, Communication, Financial, Real Estate and Professional Services, Public Administration, Defence and other services) was 8.3% at basic prices.
|
59. As per recent estimates of the Reserve Bank of India growth rate in 2002-2003 will be –
(a) 5-5.5%
(b) 5.5-6.0%
(c) 6.0-6.5%
(d) 6.5-7.0%
[U.P.P.C.S. (Mains) 2002]
Ans. (a) 5-5.5%
- The Reserve Bank of India estimated that the growth rate for 2002-03 would be around 5-5.5%.
- The Second Advance Estimates of National Income 2021-22 predicted a growth of 8.9% in GDP at constant prices in 2021-22, compared to 6.6% in 2020-21.
- The Economic Survey 2021-22 estimates that the GDP growth rate in 2021-22 will be 9.2%.
|
60. According to Asian Development Report 2004, growth rate of India in 2005 will be –
(a) 7.5%
(b) 6.9%
(c) 5.5%
(d) 4.9%
[U.P.P.C.S. (Mains) 2004]
Ans. (b) 6.9%
- ‘Asian Development Report, 2004’ was released on 28 April,2004.
- The 2005 growth rate of India was predicted to be 6.9%, making option (b) the correct answer.
- The Asian Development Outlook Supplement 2021 (December, 2021) estimated that India’s GDP growth rate for 2020 was -7.3%, 9.7% for 2021, and 7.5% for 2022.
|
61. Assertion (A): The Indian Economy has experienced recession in the fiscal year 1997-98.
Reason (R): There has been a fall in the public investment in the recent past.
Select the correct answer from the codes given below:
Code :
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true but (R) is not the correct explanation of (A)
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true.
[U.P.P.C.S. (Pre) 1998]
Ans. (b) Both (A) and (R) are true but (R) is not the correct explanation of (A)
- In 1997-98, the Indian economy grew at 4.3%, much lower than the 8.0% growth of the previous year.
- Public sector investment was 6.6% of GDP, lower than 7.5% and 7.7% in the years before.
- Both the assertion and reason are correct, but the reason given is not a valid explanation for the assertion.
|
62. Assertion (A): Indian economy has moved to a higher average GDP growth rate in the last 15 years.
Reason (R): The saving ratio has consistently increased in this period.
Code:
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true but (R) is not the correct explanation of (A)
(c) (A) is true, but (R) is false.
(d) (A) is false, but (R) is true.
[U.P.P.C.S. (Pre) 1997]
Ans. (a) Both (A) and (R) are true and (R) is the correct explanation of (A)
- On average, the Gross National Product grew by 5.5% each year during the Sixth Five-Year Plan (1980-85), 5.8% annually during the Seventh Five-Year Plan (1985-90), and 6.8% annually during the Eighth Five-Year Plan (1992-97).
- This was a higher rate than before.
- The saving rate was also higher in 1995-96 at 25.1% of GDP compared to 18.9% of GDP in 1980-81.
- Both the assertion and reason are correct, and the reason explains the assertion.
|
63. Arrange the following States in descending order of Per Capita Income for the year 1998-99 and select the correct answer from the codes given below:
A. Maharashtra B. Gujarat
C. Uttar Pradesh D. Punjab
Code:
(a) DBAC
(b) DACB
(c) BDAC
(d) ADBC
[U.P.P.C.S. (Pre) 2001]
Ans. (b) DACB
- Option (b) was the answer that was correct for the time period.
- The Economic Survey 2021-22 showed that Punjab had Rs 149,974, Maharashtra had Rs 187,118, Gujarat had Rs 197,457, and Uttar Pradesh had Rs 62,652 in per capita net state domestic product in 2018-19 and 2019-20 respectively.
|
64. Consider the following states:
1. Gujarat 2. Karnataka
3. Maharashtra 4. Tamil Nadu
The descending order of these states with reference to Their per Capita Net State Domestic Product is:
(a) 1, 3, 4, 2
(b) 3, 1, 2, 4
(c) 1, 3, 2, 4
(d) 3, 1, 4, 2
[I.A.S. (Pre) 2001]
Ans. (d) 3, 1, 4, 2
- Option (d) was the correct answer to the question.
- According to the 2021-2022 Economic Survey, the total amount of money that each person in the States of Karnataka, Gujarat, Tamil Nadu, and Maharashtra makes is as follows: Karnataka 205,697, Gujarat 197,457, Tamil Nadu 194,373, and Maharashtra 187,118 202130
|
65. The latest Per Capita Income at current prices is lowest for the Indian State of :
(a) Bihar
(b) Uttar Pradesh
(c) Odisha
(d) Nagaland
(e) None of the above/More than one of the above
[63rd B.P.S.C. (Pre) 2017]
Ans. (a) Bihar
- The Economic Survey 2021-22 states that Bihar has the lowest Per Capita Income (NSDP Per Capita) of all Indian states and union territories at Rs. 45071 in 2019-20, while Goa has the highest Per Capita Income at Rs. 435959.
|
66. Which State has minimum Per Capita Annual Income?
(a) Bihar
(b) Madhya Pradesh
(c) Odisha
(d) Uttar Pradesh
[U.P.P.C.S (Pre) 1993, U.P.P.C.S. (Pre) 2008, U.P. Lower Sub. (Pre) 2004]
Ans. (a) Bihar
- According to the 2021-22 Economic Survey, Bihar has the lowest per capita income in India at Rs. 45071 in 2019-20.
- On the other hand, Goa has the highest per capita income at Rs. 435959.
|
67. Which of the following States has the highest Per Capita Income (at present) ?
(a) Goa
(b) Punjab
(c) Maharashtra
(d) Gujarat
[U.P.P.C.S. (Pre) 1994]
Ans. (a) Goa
- The Economic Survey 2021-22 reveals that Bihar has the lowest Per Capita Income (NSDP Per Capita) in India at Rs. 45071 in 2019-20, while Goa has the highest at Rs. 435959.
- This highlights the stark inequality in economic growth and opportunities between different states in India.
|
68. According to the data released by the Government of India in March 2011 which State/Union Territory recorded highest Per Capita Income during 2009-2010?
(a) Chandigarh
(b) Delhi
(c) Goa
(d) Maharashtra
[U.P.P.C.S. (Mains) 2011]
Ans. (c) Goa
- In March 2011, the Government of India reported that in 2009-10, the state with the highest Per Capita Income was Goa and the lowest was Bihar.
- The Economic Survey 2021-22 also showed that Bihar and Goa continue to have the lowest and highest PCI respectively.
|
69. Which of the following States has highest Per Capita Average Income?
(a) Karnataka
(b) West Bengal
(c) Gujarat
(d) Haryana
[R.A.S./R.T.S. (Pre) 1992]
Ans. (d) Haryana
- According to the latest data and questions asked, Haryana has the highest Per Capita Income (Per Capita NSDP) among the listed states.
- The income for each state in 2019-20 are: Karnataka (Rs. 223175), West Bengal (Rs. 113163), Haryana (Rs. 247628), and Gujarat (Rs. 213936).
|
70. Which of the following States has the highest growth in Gross State Domestic Product in 2010-11?
(a) Bihar
(b) Chhattisgarh
(c) Maharashtra
(d) Tamil Nadu
[U.P. Lower Sub. (Pre) 2009]
Ans. (a) Bihar
- In 2010-11, Bihar had the highest growth rate in Gross State Domestic Product (GSDP).
- According to the 2021-22 Economic Survey, the rate of growth in Net State Domestic Product in 2019-20 in Bihar, Tamil Nadu, Chhattisgarh, and Maharashtra was 12.4%, 10.3%, 8.7%, and 9.0% respectively. Madhya Pradesh had the highest growth rate (15.7%) in Net State Domestic Product in the whole of India, excluding J & K and Ladakh.
|
71. Assertion (A): Economic growth in India has generally remained stagnant for the last ten years.
Reason (R): Foodgrain production has not increased for last several years.
Choose the correct answer using the codes given below:
Code :
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true but (R) is not the correct explanation of (A)
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true
[U.P.P.C.S.(Pre) 2001]
Ans. (*)
- In the 1990s, the Indian economy grew quickly until 1997, when the growth rate slowed down.
- Meanwhile, the amount of food produced went up from 176.4 million tonnes in 1990-91 to 212.9 million tonnes in 2001-02.
- This means that both the statement and the reason stated are wrong.
- Also, in the past two decades (2000-2010 and 2010-2020), the GDP growth rate has been unsteady while food production has been gradually increasing, apart from a small decrease in 2014-15.
|
72. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R).
Assertion (A): Though India’s National Income has gone up several fold since 1947, there has been no marked improvement in the Per Capita Income level.
Reason (R): A sizeable proportion of the population of India is still living below the poverty line.
In the context of the above two statements which one of the following is correct?
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true but (R) is not a correct explanation of (A)
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true
[I.A.S. (Pre) 1996]
Ans. (d) (A) is false, but (R) is true
- In the current situation, Statement A is correct, but Statement R is not.
|
73. In India, rural incomes are generally lower than the urban incomes. Which of the following reasons account for this?
1. A large number of farmers are illiterate and know little about scientific agriculture.
2. Prices of primary products are lower than those of manufactured products.
3. Investment in agriculture has been low when compared to investment in industry.
Select the correct answer by using the codes given below:
(a) 1,2 and 3
(b) 1 and 2
(c) 1 and 3
(d) 2 and 3
[I.A.S. (Pre) 1996]
Ans. (a) 1,2 and 3
- According to the 2011 Census, almost 70% of India’s population lives in villages and most of them work in agriculture.
- This low income from farming is caused by the 3 statements mentioned, which is why rural incomes are lower than city incomes.
|
74. With reference to the ‘Capital formation’ which of the statements is/are correct?
1. The process of capital formation depends on savings and the effectiveness of financial institutions.
2. Investment is the essential factor of capital formation.
Select the correct answer using the codes given below.
Codes :
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
[U.P.P.C.S. (Pre) 2021]
Ans. (c) Both 1 and 2
- Capital formation is a way of saying that a country is getting more money during a certain period of time.
- To get more, people need to save money and the government has to make policies that help this happen.
- If people are saving more, they can buy stocks and bonds and the country will be able to make more capital goods, meaning the country will have a surplus of money.
- The World Bank checks to see if the savings rate increases and if it does, that is a good sign for capital formation.
|
75. The main reason for low growth rate in India, inspite of high rate of savings and capital formation is :
(a) high birth rate
(b) low level of foreign aid
(c) low capital-output ratio
(d) high capital-output ratio
[I.A.S. (Pre) 1995]
Ans. (d) high capital-output ratio
- The amount of money needed to make one item is called the capital-output ratio.
- The lower this ratio is, the more productive capital is and the higher a country’s economic growth rate is.
- Underdeveloped and developing countries have higher capital-output ratios, which is why their economic growth has been slower.
- India has not achieved its expected growth rate partly due to its high capital-output ratio.
|
76. 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
[I.A.S. (Pre) 2018]
Ans. (d) high capital-output ratio
- The Capital-Output Ratio (COR) is the amount of capital needed to make one unit of output.
- It shows how much investment or saving it takes to produce economic growth. If the COR is high, even with a lot of savings and capital, the output won’t grow much.
- This can be represented by the equation G C S, where G stands for economic growth, C is the COR, and S is savings.
- This means that even with a lot of savings, a high COR can prevent a big increase in output.
- This could be due to poor technology or bad management.
|
77. Which of the following are the main causes of slow rate of growth of Per Capita Income in India –
1. High capital-output ratio
2. High rate of growth of population
3. High rate of capital formation
4. High level of fiscal deficits
Select the correct answer from the codes given below:
Codes :
(a) 1, 2, 3 and 4
(b) 2, 3 and 4
(c) 1 and 4
(d) 1 and 2
[I.A.S. (Pre) 1993]
Ans. (d) 1 and 2
- The Per Capita Income (PCI) in India is not growing as quickly as it should because of two main factors: the high capital output ratio (COR) and the high rate of population growth.
- Since the population is increasing rapidly, the PCI can’t keep up with the growth in Gross Domestic Product (GDP).
- Additionally, the high COR means that the cost of producing each unit is high, which slows down the growth in GDP and in turn, the growth in PCI.
|
78. Consider the following statements about the reasons behind the low level of Per Capita Income in Uttar Pradesh:
1. Fast-growing population
2. Lack of entrepreneurship
3. Inadequate infrastructural facilities
4. Modernisation of agriculture
Of these statements, which of the following statement group is correct?
(a) 1, 2 and 4
(b) 1, 2 and 3
(c) 2, 3 and 4
(d) 1, 3 and 4
[U.P.P.C.S. (Mains) 2005]
Ans. (b) 1, 2 and 3
- The main causes of the low Per Capita Income in Uttar Pradesh are listed in Statements 1, 2 and 3.
- Modernizing agriculture has nothing to do with the low Per Capita Income, so option (b) is the correct answer.
|
79. Economic growth in country X will necessarily have to occur if –
(a) there is technical progress in the world economy
(b) there is population growth in X
(c) there is capital formation in X
(d) the volume of trade grows in the world economy
[I.A.S. (Pre) 2013]
Ans. (c) there is capital formation in X
- Economists believe that capital formation is the most important part of economic growth.
- The former Planning Commission of India said that having more capital formation leads to higher productivity, more income, and more jobs.
- Capital formation happens when a country saves some of their money instead of spending it all on consumption, and uses the saved money to invest in increasing production.
- This act of saving and investing is called capital formation.
|
80. Which factor can be highly supportive in achieving economic growth rate of 8% or more in the near future in India?
(a) Promulgation of GST from April 1, 2016 without further delay.
(b) Fast skill development of labour force in the country.
(c) Implementation of all stalled productive projects.
(d) Increasing Ease of Doing Business at a rapid rate.
[R.A.S./R.T.S. (Pre) (Re. Exam.) 2013]
Ans. (c) Implementation of all stalled productive projects.
- Completing stalled projects could be very beneficial for India’s growth rate, helping it reach 8% or more soon.
- Other things such as the Goods and Services Tax, strengthening the skills of the labor force, and making it easier to do business could also help India’s growth in the long run.
|
81. Which of the following is not a characteristics of Indian Economy ?
(a) Low productivity of labour
(b) Lower per capita income
(c) Low rate of capital formation
(d) Lack of Natural Resources
[U.P.P.C.S. (Spl.) (Mains) 2004]
Ans. (d) Lack of Natural Resources
- Indian Economy does not lack natural resources, but it does have the other three characteristics.
|
82. Which of the following reasons are mainly responsible for slow growth of Real Per Capita Income in India –
1. Rapid increase in population
2. High increase in prices
3. Slow growth in agriculture and industrial sectors
4. Unavailablity of foreign exchange
Find the correct answer using the following codes –
Codes :
(a) 1 and 2 only
(b) 1, 2 and 3 only
(c) 1 and 4 only
(d) All of the above
[U.P.P.C.S. (Pre.) 2001]
Ans. (d) All of the above
- The factors mentioned caused India’s real per capita income to grow slowly in the specified time period.
- Now, there is enough foreign exchange in India, so option (b) is the right choice.
|
83. In the 2001-2010 decade, the highest rate of gross domestic savings was achieved in the year –
(a) 2005-06
(b) 2006-07
(c) 2007-08
(d) 2008-09
[U.P.P.C.S. (Mains) 2009]
Ans. (c) 2007-08
- The Economic Survey 2021-22 shows that in the 2001-2010 decade, 2007-2008 had the highest rate of gross domestic savings at 37.8% of the GDP.
- In the 2010-2020 decade, the highest gross domestic savings rate achieved was 36.9% in 2010-11 and 34.6% in 2011-12. In 2018-19 and 2019-20, the gross domestic savings rate was 30.6% and 31.4% respectively.
|
84. The average rate of domestic savings (gross) for the Indian Economy is currently estimated to be in the range of:
(a) 15 to 20 precent
(b) 20 to 25 percent
(c) 25 to 30 percent
(d) 30 to 35 percent
[I.A.S. (Pre) 1997]
Ans. (b) 20 to 25 percent
- In 1995-96 and 1996-97, the average rate of gross domestic savings in India was around 20-25%.
- The Economic Survey 2021-22 shows that in recent years, the rate of gross domestic savings has been around 31.1-31.4%.
- This makes option (d) the correct answer.
|
85. In the year 2012-13, India’s gross domestic savings rate was-
(a) 30.1 percent of GDP
(b) 25.8 percent of GDP
(c) 22.3 percent of GDP
(d) 34.6 percent of GDP
(e) None of these
[Chhattisgarh P.C.S. (Pre) 2014]
Ans. (e) None of these
- According to the Economic Survey 2021-22, the amount of money saved in the country (as a percentage of the total value of the country’s goods and services) was 33.9% in 2012-13.
|
86. Savings ratio in India at present (2006-07) stands at :
(a) between 20 to 25 percent of GDP
(b) between 25 to 30 percent of GDP
(c) between 30 to 32 percent of GDP
(d) Above 32 percent of GDP
[U.P.P.C.S. (Pre) 2008]
Ans. (d) Above 32 percent of GDP
- The Economic Survey 2021-22 reported that in 2006-07, the amount of money saved in the country was 34.9% of the total value of the country’s goods and services.
|
87. Which among the following sectors contribute the most in savings in India?
(a) Banking and financial sector
(b) Export sector
(c) Household sector
(d) Private sector
[U.P. U.D.A. / L.D. A. (Pre) 2001, U.P.P.C.S. (Mains) 2004]
Ans. (c) Household sector
- In India, households are the biggest contributors to savings. According to the Economic Survey 2021-22, in 2001-02 the total domestic savings as a percentage of GDP was 26.0%, with households accounting for 23.6%.
- In 2019-20, domestic savings were 31.4%, with households contributing 19.6%, the private corporate sector 10.7%, and the public sector 1.1%.
|
88. In the context of share in savings in India in the last four years, which one of the following statements is correct ?
(a) Household savings in the form of financial assets has increased
(b) Share of public sector in savings has increased
(c) Share of corporate sector in savings has increased
(d) Household savings in the form of financial assets has declined
[U.P.P.C.S. (Spl.) (Mains) 2004]
Ans. (c) Share of corporate sector in savings has increased
- In the time period before the question was asked, the amount of money saved by the private corporate sector had increased from 3.4% to 8.7% and 10.2%.
- In the last few years, there have been slight changes in the amount of money saved by the household sector, private corporate sector and public sector, but their overall contributions have stayed the same.
|
89. Which has the highest share in the household savings of India?
(a) Deposits
(b) Currency
(c) Physical assets
(d) Shares and debentures
[U.P.P.C.S. (Mains) 2009]
Ans. (c) Physical assets
- In 2018-19 and also in the past, households in India have saved the most in physical assets.
- According to the Reserve Bank of India’s ‘Handbook of Statistics on the Indian Economy 2019-20’, households saved more in physical assets than in financial assets in 2018-19.
|
90. In India savings arise from the following four main sectors :
1. Household sector
2. Private corporate sector
3. Public corporations and other public enterprises
4. Government
Find the correct descending order of contribution of the above sectors from the codes given below :
Code :
(a) 4, 3, 2, 1
(b) 1, 3, 2, 4
(c) 1, 2, 3, 4
(d) 4, 2, 3, 1
[U.P. Lower Sub. (Spl.) (Pre) 1998]
Ans. (c) 1, 2, 3, 4
- The Economic Survey 2021-22 shows that the household sector has the highest share of gross domestic savings in India, followed by the private corporate sector, public corporations/public enterprises, and the government.
|
