Question 1

The term National Income represents:

Accepted Answer

The correct option for representing National Income is (c) gross national product at market prices minus depreciation and indirect taxes, plus subsidies.

Question 2

In an open economy, the national income (Y) of the economy is: (C, I, G, X, M stand for Consumption, Investment, Govt. Expenditure, total exports and total imports respectively.)

Accepted Answer

In an open economy, the national income (Y) is calculated by adding Consumption (C), Investment (I), Government Expenditure (G), and the difference between total exports (X) and total imports (M). This equation is known as the national income accounts identity for an open economy. The correct formula is Y = C + I + G + (X - M).

Question 3

Human Development Index comprises literacy rates, life expectancy at birth and

Accepted Answer

The Human Development Index (HDI) evaluates progress based on life expectancy, literacy, and adjusted real income (standard of living). The first calculations for the HDR were done in 1990 by Mehboob-ul-Huq.

Question 4

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?

Accepted Answer

The correct answer is option (b), which means that only statement 2 is correct. In the past 10 years, the Gross Domestic Product (GDP) of India has increased by four times, while the percentage share of the Public Sector in the GDP has decreased during the same period.

Question 5

Which of the following pairs about India's economic indicator and agricultural production (all in rounded figures) are correctly matched? 1. GDP per capita (current prices): Rs. 37,000 2. Rice: 180 million tons 3. Wheat: 75 million tons. Select the correct answer using the code given below:

Accepted Answer

In India's economic indicators and agricultural production, the following pairings are correctly matched: GDP per capita at Rs. 37,000, rice production at 180 million tons, and wheat production at 75 million tons. The correct answer is option (d) 1 and 3 only.

National Income Accounting — UPSC Previous Year Questions

The term National Income represents:

Year-wise Distribution

Sample Questions

National Income Accounting — UPSC Previous Year Questions

The term National Income represents:

Year-wise Distribution

Sample Questions