MCQ on National Income (Quiz with Answers)

National Income MCQs Quiz – Test your knowledge on National Income concepts. These multiple choice questions (MCQs) on National Income will help you improve your understanding of the topic.

Question 1: 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

Question 2: Who among the following was the Chairman of National 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

Question 3: The national income of a country for a given period is equal to the __________.

(A) Total value of goods and services produced by the nationals

(B) Sum of total consumption and investment expenditure

(C) Sum of personal income of all individual

(D) Money value of final goods and services produced

Question 4: Which among the following sectors contribute most to GDP of India?

(A) Primary sector

(B) Secondary sector

(C) Tertiary sector

(D) All three contribute equally

Question 5: Which one of the following is the correct sequence in the decreasing order of contribution of different
sectors to the Gross Domestic Product of India?

(A) Service, Industry, Agriculture

(B) Service, Agriculture, Industry

(C) Industry, Service, Agriculture

(D) Industry, Agriculture, Service

Question 6: Indicate the vital change in the measurement of National Income of India __________.

(A) Base year has been changed from 2004-05 to 2011-12

(B) Calculation has been changed from factor cost to market prices

(C) Calculation has been changed from current prices to constant prices

(D) Both the base year and calculation method have been changed

Question 7: The Government of India has decided to revise the base for estimating the GDP from _________.

(A) 2001-02 to 2010-11

(B) 2004-05 to 2013-14

(C) 2004-05 to 2011-12

(D) 2001-02 to 2011-12

Question 8: Which 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 overtime

(D) An increase in national income along with increase in population

Question 9: The most appropriate measure of a country’s economic growth is its _________.

(A) Gross Domestic Product

(B) Net Domestic Product

(C) Net National Product

(D) Per Capita Real Income

Question 10: The Hindu rate of growth refers to the growth rate of _________.

(A) Per Capita Income

(B) National Income

(C) Population

(D) Literacy

Question 11: Which of the following causes have been mainly responsible for the slow growth of real per capita
income in India?

1.  Rapid rise in population
   
2.  Rapid rise in prices
   
3.  Slow pace of progress in agriculture and industrial fields
   
4.  Non-availability of foreign exchange

Choose the correct answer from the codes given below. 

(A) Only 1 and 2

(B) Only 1 and 3

(C) Only 1 and 4

(D) All of these

Question 12: The first measure of India’s National Income was made by _________.

(A) William Digby

(B) Dadabhai Naoroji

(C) M.G. Ranade

(D) V.K.R.V. Rao

Question 13: The Per Capita Income in India was ` 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

Question 14: Which of the following statements is not true of the Indian Economy?

(A) Its share of world population is only 16%, but its share of world GDP is 1.6%

(B) The share of service sector in India’s GDP is only 25%

(C) 58% of its working population is engaged in agriculture, but the contribution of agriculture to the national income is 22%

(D) India occupies only 2.4% of the world’s geographical area

Question 15: The growth rate of per capita income at current prices is higher than that of per capita income at constant prices, because the later 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

Question 16: Human Development Index (HDI) comprises literacy rates, life expectancy at birth and __________.

(A) Gross Domestic Product per head in US Dollars

(B) Gross Domestic Product per head at real purchasing power

(C) Gross National Product in US Dollars

(D) National Income per head in US Dollars

Question 17: National Income is the _________.

(A) Net National Product at market price

(B) Net National Product at factor cost

(C) Net Domestic Product at market price

(D) Net Domestic Product at factor cost

Question 18: The term National Income represents ________.

(A) Gross National Product at market price minus depreciation

(B) Gross National Product at market price minus depreciation plus net factor Income from abroad

(C) Gross National Product at market price minus depreciation and indirect tax plus subsidies

(D) Gross National Product at market price minus net factor income from abroad

Question 19: In an open economy, the National Income (y) of the economy is (C, I, G, X, M, Y stand for Consumption, Investment, Government Expenditure, Total Exports, Total Imports and National Income, respectively).
Select the correct answer from the following

(A) Y = C + I + G + X

(B) Y = I + G – X + M

(C) Y = C + I + G + (X – M)

(D) Y = C + I – G + (X – M)

Question 20: Which of the following is/are the component(s) of Gross Domestic Capital Formation (GDCF)?

1.  Gross Domestic Saving
   
2.  Net Capital Inflow
   
3.  Direct Foreign Investment

Choose the correct answer from the codes given below

(A) Only 1

(B) Only 2

(C) Only 3

(D) Only 1 and 2

Question 21: The most simple and popular method of measuring economic development is to calculate the trend of Gross National Product (GNP) at _________.

(A) Current prices

(B) Constant prices

(C) Both of the above

(D) None of the above

Question 22: When National Income is calculated with reference to a base year, it is called ________.

(A) Nominal national income

(B) Real national income

(C) Net national income

(D) Gross national income

Question 23: Which among the following are the factors that determine the national income of a country?

(A) Quantity and Quality of factors of produced

(B) The state of technical knowledge

(C) Economic and Political stability

(D) All of the above

Question 24: National Sample Survey Office (NSSO) was established in the year _________.

(A) 1950

(B) 1951

(C) 1947

(D) 1948

Question 25: Which of the following methods is not being used in the unemployment estimation by the NSSO in India? 

(A) Current monthly status

(B) Current daily status

(C) Current weekly status

(D) Usual principal status

Question 26: Economic Survey in India is published by ________.

(A) Ministry of Finance

(B) Planning Commission

(C) Ministry of Commerce

(D) Indian Statistical Institute

Question 27: One of the problems in calculating National Income in India is _________.

(A) Under-employment

(B) Inflation

(C) Low level of savings

(D) Non-monetised consumption

Question 28: What was India’s estimated GDP growth rate for 2018-19 in the Economic survey?

(A) 6.3% – 7.1%

(B) 7.2% – 7.5%

(C) 7% – 7.5%

(D) 7% – 7.2%