National Income MCQs (GDP, GNP, PPP, HDI & Measurement Methods) – 300+ Global Questions

National Income and Measurement 

This global resource delivers 300+ exam‑style MCQs on National Income, covering GDP, GNP, NNP, PPP, HDI, and all major measurement methods—Product/Value Added, Income, and Expenditure. Readers worldwide will gain clear explanations, sectoral insights, international comparisons, and advanced analytical coverage, making it ideal for UPSC, SSC, Banking, SAT, GMAT, and other global economics exams.

Q1. Which of the following best defines Gross Domestic Product (GDP)?  

A) Total value of goods and services produced by nationals of a country  

✅ B) Total value of goods and services produced within a country’s borders  

C) Net value of goods and services after depreciation  

D) Total income earned by residents abroad  

Explanation: GDP measures the monetary value of all final goods and services produced within a country’s geographical boundaries during a specific period, regardless of who produces them.

Q2. Gross National Product (GNP) is defined as:  

✅ A) GDP + Net factor income from abroad  

B) GDP – Depreciation  

C) NNP + Indirect taxes  

D) GDP – Net indirect taxes  

Explanation: GNP includes the value of goods and services produced domestically plus net income earned from abroad by residents.

Q3. Net National Product (NNP) is obtained by:  

A) GNP – Net indirect taxes  

✅ B) GNP – Depreciation  

C) GDP – Net factor income from abroad  

D) GDP – Subsidies  

Explanation: NNP is calculated by subtracting depreciation (wear and tear of capital assets) from GNP.

Q4. Net Domestic Product (NDP) is equal to:  

✅ A) GDP – Depreciation  

B) GNP – Net indirect taxes  

C) NNP – Net factor income from abroad  

D) GDP + Subsidies  

Explanation: NDP is GDP adjusted for depreciation, showing the net value of goods and services produced within domestic borders.

Q5. Which of the following is a flow concept?  

A) Wealth  

✅ B) National Income  

C) Capital stock  

D) Assets  

Explanation: National Income is measured over a period of time (flow), whereas wealth and capital stock are stock concepts.

Q6. Which of the following is NOT included in GDP?  

A) Value of goods produced in India by foreign companies  

✅ B) Transfer payments like pensions  

C) Services produced within India  

D) Agricultural output within India  

Explanation: Transfer payments are not part of GDP as they do not correspond to production of goods or services.

Q7. Which of the following is included in GNP but not in GDP?  

✅ A) Net factor income from abroad  

B) Depreciation  

C) Indirect taxes  

D) Subsidies  

Explanation: GNP adds net factor income from abroad to GDP, capturing income earned by nationals outside domestic borders.

Q8. Which of the following is deducted to arrive at NNP from GNP?  

A) Indirect taxes  

✅ B) Depreciation  

C) Subsidies  

D) Net factor income from abroad  

Explanation: Depreciation is subtracted from GNP to calculate NNP.

Q9. Which of the following is considered while calculating GDP at market price?  

✅ A) Indirect taxes and subsidies  

B) Net factor income from abroad  

C) Depreciation only  

D) Transfer payments  

Explanation: GDP at market price includes indirect taxes and excludes subsidies to reflect market valuation.

Q10. Which of the following is NOT a component of GDP?  

A) Private consumption  

B) Government expenditure  

✅ C) Illegal transactions  

D) Net exports  

Explanation: Illegal transactions are excluded from GDP as they are not officially recorded.

Q11. Which of the following is true about GDP at factor cost?  

✅ A) GDP at market price – Indirect taxes + Subsidies  

B) GDP at market price + Net factor income from abroad  

C) GNP – Depreciation  

D) NNP – Indirect taxes  

Explanation: GDP at factor cost adjusts GDP at market price by removing indirect taxes and adding subsidies.

Q12. Which of the following is NOT a limitation of GDP as a measure of welfare?  

A) Ignores distribution of income  

B) Ignores non-market activities  

✅ C) Includes depreciation  

D) Ignores environmental costs  

Explanation: GDP does include depreciation adjustments; the other options are limitations.

Q13. Which of the following is a stock concept?  

A) National Income  

✅ B) Wealth  

C) Expenditure  

D) Savings  

Explanation: Wealth is measured at a point in time, making it a stock concept.

Q14. Which of the following is included in GDP but not in NDP?  

✅ A) Depreciation  

B) Net factor income from abroad  

C) Subsidies  

D) Indirect taxes  

Explanation: GDP includes depreciation, while NDP excludes it.

Q15. Which of the following is included in NNP but not in GNP?  

A) Net factor income from abroad  

✅ B) Depreciation adjustment  

C) Indirect taxes  

D) Subsidies  

Explanation: NNP is GNP adjusted for depreciation.

Q16. Which of the following is NOT considered in GDP calculation?  

A) Final goods  

✅ B) Intermediate goods  

C) Services  

D) Agricultural output  

Explanation: Intermediate goods are excluded to avoid double counting.

Q17. Which of the following is true about GDP at constant prices?  

✅ A) Adjusted for inflation  

B) Includes depreciation  

C) Includes net factor income from abroad  

D) Includes indirect taxes  

Explanation: GDP at constant prices removes the effect of inflation to measure real growth.

Q18. Which of the following is true about GDP at current prices?  

✅ A) Includes inflation effect  

B) Excludes depreciation  

C) Excludes indirect taxes  

D) Excludes subsidies  

Explanation: GDP at current prices reflects the value of goods and services at prevailing market prices, including inflation.

Q19. Which of the following is NOT part of national income?  

A) Wages and salaries  

B) Rent  

✅ C) Transfer payments  

D) Profits  

Explanation: Transfer payments are excluded as they do not represent factor income.

Q20. Which of the following is included in GDP but not in GNP?  

✅ A) Income earned by foreigners within domestic borders  

B) Net factor income from abroad  

C) Depreciation  

D) Subsidies  

Explanation: GDP includes production within domestic borders, even by foreigners, while GNP excludes it.

Q21. Which of the following is deducted to arrive at GDP at factor cost from GDP at market price?  

✅ A) Indirect taxes  

B) Depreciation  

C) Net factor income from abroad  

D) Subsidies  

Explanation: GDP at factor cost is obtained by subtracting indirect taxes and adding subsidies to GDP at market price.

Q22. Which of the following is NOT a component of GNP?  

A) GDP  

✅ B) Transfer payments  

C) Net factor income from abroad  

D) Depreciation  

Explanation: Transfer payments are excluded from GNP as they do not represent production.

Q23. Which of the following is true about NNP at factor cost?  

✅ A) National Income  

B) GDP at market price – Depreciation  

C) GNP – Net factor income from abroad  

D) GDP – Subsidies  

Explanation: NNP at factor cost is the same as National Income.

Q24. Which of the following is NOT included in GDP calculation?  

A) Services rendered by professionals  

✅ B) Household services without payment  

C) Agricultural output  

D) Industrial output  

Explanation: Non-paid household services are excluded as they are non-market activities.

Q25. Which of the following is true about GDP growth rate?  

✅ A) Measures increase in real output  

B) Measures increase in nominal output only  

C) Measures increase in factor income abroad  

D) Measures increase in transfer payments  

Explanation: GDP growth rate is based on real output, adjusted for inflation, to reflect actual economic growth.

Q26. GDP at factor cost is obtained by:  

✅ A) GDP at market price – Indirect taxes + Subsidies  

B) GDP at market price + Net factor income from abroad  

C) GNP – Depreciation  

D) NNP – Indirect taxes  

Explanation: GDP at factor cost adjusts GDP at market price by removing indirect taxes and adding subsidies.

Q27. Which of the following is included in GDP at market price but excluded in GDP at factor cost?  

✅ A) Indirect taxes  

B) Subsidies  

C) Depreciation  

D) Net factor income from abroad  

Explanation: GDP at market price includes indirect taxes, while GDP at factor cost excludes them.

Q28. Which of the following is added to GDP at market price to arrive at GDP at factor cost?  

A) Indirect taxes  

✅ B) Subsidies  

C) Depreciation  

D) Net factor income from abroad  

Explanation: Subsidies are added to GDP at market price to calculate GDP at factor cost.

Q29. Which of the following is true about GDP at market price?  

✅ A) Includes indirect taxes and excludes subsidies  

B) Excludes indirect taxes and includes subsidies  

C) Excludes depreciation  

D) Includes net factor income from abroad  

Explanation: GDP at market price reflects market valuation, including indirect taxes and excluding subsidies.

Q30. Which of the following is NOT a difference between GDP at market price and GDP at factor cost?  

A) Market price includes indirect taxes  

B) Factor cost includes subsidies  

✅ C) Factor cost includes depreciation  

D) Market price excludes subsidies  

Explanation: Depreciation is not part of the distinction between factor cost and market price.

Q31. Nominal GDP is measured at:  

✅ A) Current prices  

B) Constant prices  

C) Factor cost  

D) Market price excluding taxes  

Explanation: Nominal GDP is calculated using current prices, including inflation effects.

Q32. Real GDP is measured at:  

A) Current prices  

✅ B) Constant prices  

C) Factor cost only  

D) Market price excluding subsidies  

Explanation: Real GDP is measured at constant prices to remove inflation effects.

Q33. Which of the following is true about nominal GDP?  

✅ A) Includes inflation effect  

B) Excludes depreciation  

C) Excludes indirect taxes  

D) Excludes subsidies  

Explanation: Nominal GDP reflects the value of goods and services at prevailing market prices, including inflation.

Q34. Which of the following is true about real GDP?  

A) Includes inflation effect  

✅ B) Adjusted for inflation  

C) Includes net factor income from abroad  

D) Includes indirect taxes  

Explanation: Real GDP removes inflation effects to measure actual growth.

Q35. Which of the following is NOT a limitation of nominal GDP?  

A) Misleading growth due to inflation  

B) Cannot compare across years  

✅ C) Excludes depreciation  

D) Overstates welfare  

Explanation: Depreciation is not a limitation specific to nominal GDP.

Q36. Which of the following is a better measure of economic growth?  

A) Nominal GDP  

✅ B) Real GDP  

C) GDP at market price  

D) GDP at factor cost  

Explanation: Real GDP is better as it adjusts for inflation, showing actual growth.

Q37. Which of the following is true about GDP deflator?  

✅ A) Ratio of nominal GDP to real GDP × 100  

B) Ratio of real GDP to nominal GDP × 100  

C) Ratio of GNP to NNP × 100  

D) Ratio of GDP to GNP × 100  

Explanation: GDP deflator measures inflation by comparing nominal GDP with real GDP.

Q38. Which of the following is NOT included in GDP deflator?  

A) Goods produced domestically  

✅ B) Imported goods  

C) Services produced domestically  

D) Agricultural output  

Explanation: GDP deflator only considers domestically produced goods and services, excluding imports.

Q39. Which of the following is true about GDP deflator compared to CPI?  

✅ A) Covers all goods and services produced domestically  

B) Covers only consumer goods  

C) Covers only imported goods  

D) Covers only industrial goods  

Explanation: GDP deflator is broader than CPI, covering all domestically produced goods and services.

Q40. Which of the following is true about GDP at constant prices?  

✅ A) Removes inflation effect  

B) Includes subsidies  

C) Includes depreciation  

D) Includes net factor income from abroad  

Explanation: GDP at constant prices measures real growth by removing inflation effects.

Q41. Which of the following is true about GDP at current prices?  

✅ A) Includes inflation effect  

B) Excludes depreciation  

C) Excludes indirect taxes  

D) Excludes subsidies  

Explanation: GDP at current prices reflects prevailing market prices, including inflation.

Q42. Which of the following is NOT a use of real GDP?  

A) Measuring actual growth  

B) Comparing across years  

✅ C) Measuring nominal income levels  

D) Adjusting for inflation  

Explanation: Real GDP is not used to measure nominal income levels.

Q43. Which of the following is true about per capita income?  

✅ A) National Income ÷ Population  

B) GDP ÷ Population  

C) GNP ÷ Population  

D) NNP ÷ Population  

Explanation: Per capita income is calculated by dividing National Income by population.

Q44. Which of the following is NOT a limitation of per capita income?  

A) Ignores income distribution  

B) Ignores non-market activities  

✅ C) Ignores depreciation  

D) Ignores environmental costs  

Explanation: Depreciation is not a limitation specific to per capita income.

Q45. Which of the following is true about GDP growth rate?  

✅ A) Based on real GDP  

B) Based on nominal GDP only  

C) Based on factor cost only  

D) Based on subsidies  

Explanation: GDP growth rate is based on real GDP to reflect actual growth.

Q46. Which of the following is true about GDP at factor cost?  

✅ A) Reflects income received by factors of production  

B) Reflects market valuation including taxes  

C) Reflects nominal GDP only  

D) Reflects subsidies only  

Explanation: GDP at factor cost shows income earned by factors of production.

Q47. Which of the following is true about GDP at market price?  

✅ A) Reflects market valuation including taxes  

B) Reflects factor payments only  

C) Reflects subsidies only  

D) Reflects depreciation only  

Explanation: GDP at market price includes indirect taxes and excludes subsidies.

Q48. Which of the following is NOT a difference between nominal and real GDP?  

A) Nominal GDP includes inflation  

B) Real GDP excludes inflation  

✅ C) Real GDP includes depreciation  

D) Nominal GDP reflects current prices  

Explanation: Depreciation is not part of the distinction between nominal and real GDP.

Q49. Which of the following is true about GDP deflator?  

✅ A) Measures inflation in the economy  

B) Measures only consumer prices  

C) Measures only wholesale prices  

D) Measures only imported goods  

Explanation: GDP deflator measures overall inflation by comparing nominal and real GDP.

Q50. Which of the following is NOT a limitation of GDP deflator?  

A) Requires accurate GDP data  

B) May not reflect consumer basket  

✅ C) Includes imported goods  

D) May be difficult to calculate frequently  

Explanation: GDP deflator excludes imported goods, so including them is not a limitation.

Q51. Per capita income is calculated as:  

✅ A) National Income ÷ Population  

B) GDP ÷ Population  

C) GNP ÷ Population  

D) NNP ÷ Population  

Explanation: Per capita income is derived by dividing National Income by the total population, showing average income per person.

Q52. Which of the following is NOT a limitation of per capita income?  

A) Ignores income distribution  

B) Ignores non-market activities  

✅ C) Ignores depreciation  

D) Ignores environmental costs  

Explanation: Depreciation is not a limitation specific to per capita income; the other options are valid limitations.

Q53. Which of the following is true about domestic product?  

✅ A) Refers to production within a country’s borders  

B) Refers to production by nationals abroad  

C) Refers to net income only  

D) Refers to factor cost only  

Explanation: Domestic product includes all goods and services produced within a country’s geographical boundaries.

Q54. Which of the following is true about national product?  

A) Refers to production within borders only  

✅ B) Refers to production by nationals, including abroad  

C) Refers to GDP only  

D) Refers to NDP only  

Explanation: National product includes production by nationals both domestically and abroad.

Q55. Which of the following is deducted to arrive at Net Domestic Product (NDP)?  

✅ A) Depreciation  

B) Indirect taxes  

C) Subsidies  

D) Net factor income from abroad  

Explanation: NDP is GDP minus depreciation.

Q56. Which of the following is deducted to arrive at Net National Product (NNP)?  

✅ A) Depreciation  

B) Indirect taxes  

C) Subsidies  

D) Net factor income from abroad  

Explanation: NNP is GNP minus depreciation.

Q57. Which of the following is added to GDP to arrive at GNP?  

✅ A) Net factor income from abroad  

B) Depreciation  

C) Subsidies  

D) Indirect taxes  

Explanation: GNP = GDP + Net factor income from abroad.

Q58. Which of the following is deducted to arrive at NNP at factor cost from NNP at market price?  

✅ A) Indirect taxes – Subsidies  

B) Depreciation  

C) Net factor income from abroad  

D) Transfer payments  

Explanation: NNP at factor cost = NNP at market price – Indirect taxes + Subsidies.

Q59. Which of the following is true about GDP at factor cost?  

✅ A) Reflects income earned by factors of production  

B) Reflects market valuation including taxes  

C) Reflects nominal GDP only  

D) Reflects subsidies only  

Explanation: GDP at factor cost shows income received by factors of production.

Q60. Which of the following is true about GDP at market price?  

✅ A) Includes indirect taxes and excludes subsidies  

B) Excludes indirect taxes and includes subsidies  

C) Excludes depreciation  

D) Includes net factor income from abroad  

Explanation: GDP at market price reflects market valuation, including indirect taxes and excluding subsidies.

Q61. Which of the following is NOT included in GDP?  

A) Goods produced domestically  

B) Services produced domestically  

✅ C) Net factor income from abroad  

D) Agricultural output  

Explanation: Net factor income from abroad is excluded from GDP but included in GNP.

Q62. Which of the following is included in GNP but not in GDP?  

✅ A) Net factor income from abroad  

B) Depreciation  

C) Indirect taxes  

D) Subsidies  

Explanation: GNP adds net factor income from abroad to GDP.

Q63. Which of the following is excluded from NDP but included in GDP?  

✅ A) Depreciation  

B) Subsidies  

C) Indirect taxes  

D) Net factor income from abroad  

Explanation: NDP excludes depreciation, while GDP includes it.

Q64. Which of the following is excluded from NNP but included in GNP?  

✅ A) Depreciation  

B) Subsidies  

C) Indirect taxes  

D) Net factor income from abroad  

Explanation: NNP excludes depreciation, while GNP includes it.

Q65. Which of the following is true about GDP at constant prices?  

✅ A) Adjusted for inflation  

B) Includes subsidies only  

C) Includes depreciation only  

D) Includes net factor income from abroad  

Explanation: GDP at constant prices removes inflation effects to measure real growth.

Q66. Which of the following is true about GDP at current prices?  

✅ A) Includes inflation effect  

B) Excludes depreciation  

C) Excludes indirect taxes  

D) Excludes subsidies  

Explanation: GDP at current prices reflects prevailing market prices, including inflation.

Q67. Which of the following is NOT a component of National Income?  

A) Wages and salaries  

B) Rent  

✅ C) Transfer payments  

D) Profits  

Explanation: Transfer payments are excluded as they do not represent factor income.

Q68. Which of the following is true about per capita income as a measure of welfare?  

A) Perfect measure of welfare  

✅ B) Imperfect measure, ignores distribution  

C) Includes environmental costs  

D) Includes non-market activities  

Explanation: Per capita income ignores distribution of income, making it an imperfect measure of welfare.

Q69. Which of the following is deducted to arrive at GDP at factor cost from GDP at market price?  

✅ A) Indirect taxes – Subsidies  

B) Depreciation  

C) Net factor income from abroad  

D) Transfer payments  

Explanation: GDP at factor cost = GDP at market price – Indirect taxes + Subsidies.

Q70. Which of the following is true about NNP at factor cost?  

✅ A) Same as National Income  

B) Same as GDP  

C) Same as GNP  

D) Same as NDP  

Explanation: NNP at factor cost is equivalent to National Income.

Q71. Which of the following is NOT included in GDP calculation?  

A) Services rendered by professionals  

✅ B) Household services without payment  

C) Agricultural output  

D) Industrial output  

Explanation: Non-paid household services are excluded as they are non-market activities.

Q72. Which of the following is true about GDP growth rate?  

✅ A) Based on real GDP  

B) Based on nominal GDP only  

C) Based on factor cost only  

D) Based on subsidies  

Explanation: GDP growth rate is based on real GDP to reflect actual growth.

Q73. Which of the following is true about GNP at market price?  

✅ A) GDP + Net factor income from abroad  

B) GDP – Depreciation  

C) NNP – Indirect taxes  

D) GDP – Subsidies  

Explanation: GNP at market price = GDP + Net factor income from abroad.

Q74. Which of the following is true about NNP at market price?  

✅ A) GNP – Depreciation  

B) GDP – Depreciation  

C) GDP – Subsidies  

D) GDP – Indirect taxes  

Explanation: NNP at market price is obtained by subtracting depreciation from GNP.

Q75. Which of the following is true about NNP at factor cost?  

✅ A) NNP at market price – Indirect taxes + Subsidies  

B) GDP – Depreciation  

C) GNP – Net factor income from abroad  

D) GDP – Subsidies  

Explanation: NNP at factor cost is calculated by adjusting NNP at market price for indirect taxes and subsidies.

Q76. GDP at constant prices is measured using:  

✅ A) Base year prices  

B) Current year prices  

C) Factor cost only  

D) Market price only  

Explanation: GDP at constant prices uses base year prices to eliminate inflation effects and measure real growth.

Q77. GDP at current prices is measured using:  

✅ A) Current year prices  

B) Base year prices  

C) Factor cost only  

D) Market price only  

Explanation: GDP at current prices reflects prevailing market prices, including inflation.

Q78. Which of the following is true about GDP at constant prices?  

✅ A) Removes inflation effect  

B) Includes subsidies only  

C) Includes depreciation only  

D) Includes net factor income from abroad  

Explanation: GDP at constant prices adjusts for inflation to measure real growth.

Q79. Which of the following is true about GDP at current prices?  

✅ A) Includes inflation effect  

B) Excludes depreciation  

C) Excludes indirect taxes  

D) Excludes subsidies  

Explanation: GDP at current prices reflects prevailing market prices, including inflation.

Q80. Which of the following is NOT a limitation of GDP at current prices?  

A) Misleading growth due to inflation  

B) Cannot compare across years  

✅ C) Excludes depreciation  

D) Overstates welfare  

Explanation: Depreciation is not a limitation specific to GDP at current prices.

Q81. Purchasing Power Parity (PPP) is used to:  

✅ A) Compare income levels across countries  

B) Measure depreciation  

C) Measure inflation  

D) Measure subsidies  

Explanation: PPP adjusts income levels to account for differences in cost of living across countries.

Q82. Which of the following is true about PPP?  

✅ A) Reflects relative cost of goods and services  

B) Reflects only nominal exchange rates  

C) Reflects only inflation  

D) Reflects only subsidies  

Explanation: PPP compares the cost of a basket of goods across countries to measure relative purchasing power.

Q83. Which of the following is NOT a limitation of PPP?  

A) Differences in consumption patterns  

B) Differences in quality of goods  

✅ C) Includes depreciation  

D) Differences in services  

Explanation: Depreciation is unrelated to PPP; the other options are valid limitations.

Q84. Which of the following is true about PPP-adjusted GDP?  

✅ A) Provides better international comparison  

B) Provides nominal values only  

C) Provides inflation-adjusted values only  

D) Provides depreciation-adjusted values only  

Explanation: PPP-adjusted GDP allows meaningful comparisons of income levels across countries.

Q85. Which of the following is true about circular flow of income?  

✅ A) Shows interaction between households and firms  

B) Shows only government expenditure  

C) Shows only exports and imports  

D) Shows only depreciation  

Explanation: Circular flow of income illustrates how households provide factors of production and firms provide goods and services.

Q86. In the circular flow of income, households provide:  

✅ A) Factors of production  

B) Goods and services  

C) Subsidies  

D) Taxes  

Explanation: Households supply factors of production like labor, land, and capital.

Q87. In the circular flow of income, firms provide:  

A) Factors of production  

✅ B) Goods and services  

C) Subsidies  

D) Taxes  

Explanation: Firms produce goods and services in exchange for factor payments.

Q88. Which of the following is NOT part of the circular flow of income?  

A) Households  

B) Firms  

✅ C) Depreciation  

D) Government  

Explanation: Depreciation is an adjustment in measurement, not part of the circular flow model.

Q89. Which of the following is true about injections in circular flow?  

✅ A) Government spending, investment, exports  

B) Taxes, savings, imports  

C) Depreciation only  

D) Subsidies only  

Explanation: Injections add money into the economy, such as government spending, investment, and exports.

Q90. Which of the following is true about leakages in circular flow?  

A) Government spending, investment, exports  

✅ B) Taxes, savings, imports  

C) Depreciation only  

D) Subsidies only  

Explanation: Leakages remove money from the economy, such as taxes, savings, and imports.

Q91. Which of the following is true about equilibrium in circular flow?  

✅ A) Injections = Leakages  

B) Injections > Leakages  

C) Leakages > Injections  

D) Injections = Depreciation  

Explanation: Equilibrium occurs when injections equal leakages in the circular flow of income.

Q92. Which of the following is NOT a use of national income data?  

A) Policy formulation  

B) Economic planning  

✅ C) Measuring depreciation only  

D) International comparison  

Explanation: National income data is used for policy, planning, and comparison, not just depreciation.

Q93. Which of the following is true about national income as a measure of welfare?  

✅ A) Imperfect measure, ignores distribution and environment  

B) Perfect measure of welfare  

C) Includes non-market activities  

D) Includes environmental costs  

Explanation: National income is an imperfect measure of welfare as it ignores distribution and environmental factors.

Q94. Which of the following is NOT a limitation of national income statistics?  

A) Ignores non-market activities  

B) Ignores distribution of income  

✅ C) Includes depreciation  

D) Ignores environmental costs  

Explanation: Depreciation is part of measurement, not a limitation of national income statistics.

Q95. Which of the following is true about national income data in developing countries?  

✅ A) Less reliable due to informal sector  

B) More reliable than developed countries  

C) Perfectly accurate  

D) Ignores inflation  

Explanation: National income data in developing countries is less reliable due to large informal sectors.

Q96. Which of the following is true about national income data in developed countries?  

✅ A) More reliable due to better data collection  

B) Less reliable due to informal sector  

C) Perfectly accurate  

D) Ignores inflation  

Explanation: Developed countries have better statistical systems, making national income data more reliable.

Q97. Which of the following is true about national income and economic development?  

✅ A) Higher national income generally indicates higher development  

B) Higher national income always indicates perfect welfare  

C) Higher national income ignores inequality  

D) Higher national income ignores environment  

Explanation: Higher national income is associated with development but does not guarantee welfare.

Q98. Which of the following is true about national income and inequality?  

✅ A) National income does not show distribution  

B) National income perfectly shows distribution  

C) National income includes inequality measures  

D) National income includes environmental costs  

Explanation: National income measures aggregate output but does not reflect distribution.

Q99. Which of the following is true about national income and environment?  

✅ A) National income ignores environmental costs  

B) National income includes environmental costs  

C) National income measures pollution directly  

D) National income includes sustainability  

Explanation: National income statistics do not account for environmental degradation.

Q100. Which of the following is true about national income as a policy tool?  

✅ A) Helps in planning and policy formulation  

B) Measures only depreciation  

C) Measures only subsidies  

D) Measures only taxes  

Explanation: National income data is crucial for economic planning and policy formulation.

Q101. The Product/Value Added Method measures national income by:  

✅ A) Adding value added at each stage of production  

B) Adding factor incomes  

C) Adding expenditures  

D) Adding transfer payments  

Explanation: The Product Method calculates national income by summing the value added at each stage of production to avoid double counting.

Q102. Which of the following is excluded in the Product Method?  

A) Final goods  

✅ B) Intermediate goods  

C) Services  

D) Agricultural output  

Explanation: Intermediate goods are excluded to prevent double counting; only final goods and services are included.

Q103. Value added is calculated as:  

✅ A) Output – Intermediate consumption  

B) Output – Depreciation  

C) Output – Subsidies  

D) Output – Indirect taxes  

Explanation: Value added is the difference between gross output and intermediate consumption.

Q104. Which of the following is NOT included in value added?  

A) Wages  

B) Profits  

✅ C) Transfer payments  

D) Rent  

Explanation: Transfer payments are excluded since they do not represent production.

Q105. Which of the following is true about the Product Method?  

✅ A) Avoids double counting by using value added  

B) Includes transfer payments  

C) Excludes services  

D) Includes intermediate goods  

Explanation: The Product Method avoids double counting by focusing on value added.

Q106. Which of the following is a limitation of the Product Method?  

✅ A) Difficulty in measuring services  

B) Double counting  

C) Excludes final goods  

D) Excludes agricultural output  

Explanation: Measuring services accurately is difficult under the Product Method.

Q107. Which of the following is included in the Product Method?  

✅ A) Goods and services produced domestically  

B) Transfer payments  

C) Illegal transactions  

D) Household unpaid services  

Explanation: Only goods and services produced domestically are included.

Q108. Which of the following is NOT a step in the Product Method?  

A) Identifying final goods  

B) Calculating value added  

✅ C) Adding transfer payments  

D) Summing sectoral contributions  

Explanation: Transfer payments are excluded from the Product Method.

Q109. Which of the following is true about agricultural output in the Product Method?  

✅ A) Included as part of domestic production  

B) Excluded due to informal sector  

C) Counted as transfer payments  

D) Counted as depreciation  

Explanation: Agricultural output is included in GDP as part of domestic production.

Q110. Which of the following is true about industrial output in the Product Method?  

✅ A) Included as part of domestic production  

B) Excluded due to informal sector  

C) Counted as transfer payments  

D) Counted as depreciation  

Explanation: Industrial output is included in GDP as part of domestic production.

Q111. Which of the following is true about services in the Product Method?  

✅ A) Included but difficult to measure  

B) Excluded completely  

C) Counted as transfer payments  

D) Counted as depreciation  

Explanation: Services are included but often difficult to measure accurately.

Q112. Which of the following is NOT included in the Product Method?  

A) Goods produced domestically  

B) Services produced domestically  

✅ C) Illegal transactions  

D) Agricultural output  

Explanation: Illegal transactions are excluded from GDP.

Q113. Which of the following is true about value added in manufacturing?  

✅ A) Output – Intermediate consumption  

B) Output – Depreciation  

C) Output – Subsidies  

D) Output – Indirect taxes  

Explanation: Value added in manufacturing is calculated by subtracting intermediate consumption from output.

Q114. Which of the following is true about value added in services?  

✅ A) Measured by fees, charges, and payments  

B) Measured by intermediate goods  

C) Measured by subsidies  

D) Measured by depreciation  

Explanation: Value added in services is measured by payments received for services rendered.

Q115. Which of the following is NOT a sector in the Product Method?  

A) Agriculture  

B) Industry  

C) Services  

✅ D) Transfer payments  

Explanation: Transfer payments are excluded as they do not represent production.

Q116. Which of the following is true about GDP using the Product Method?  

✅ A) Sum of value added across all sectors  

B) Sum of factor incomes  

C) Sum of expenditures  

D) Sum of transfer payments  

Explanation: GDP is calculated as the sum of value added across agriculture, industry, and services.

Q117. Which of the following is a challenge in the Product Method?  

✅ A) Measuring informal sector output  

B) Measuring depreciation  

C) Measuring subsidies  

D) Measuring transfer payments  

Explanation: Informal sector output is difficult to measure accurately.

Q118. Which of the following is true about double counting?  

✅ A) Avoided by using value added  

B) Occurs when final goods are excluded  

C) Occurs when services are excluded  

D) Occurs when depreciation is included  

Explanation: Double counting is avoided by calculating value added at each stage.

Q119. Which of the following is NOT included in GDP using the Product Method?  

A) Agricultural output  

B) Industrial output  

✅ C) Household unpaid services  

D) Services rendered by professionals  

Explanation: Household unpaid services are excluded as they are non-market activities.

Q120. Which of the following is true about GDP at market price using the Product Method?  

✅ A) Includes indirect taxes and excludes subsidies  

B) Excludes indirect taxes and includes subsidies  

C) Excludes depreciation  

D) Includes transfer payments  

Explanation: GDP at market price includes indirect taxes and excludes subsidies.

Q121. Which of the following is true about GDP at factor cost using the Product Method?  

✅ A) GDP at market price – Indirect taxes + Subsidies  

B) GDP at market price + Net factor income from abroad  

C) GNP – Depreciation  

D) NNP – Indirect taxes  

Explanation: GDP at factor cost is obtained by adjusting GDP at market price for taxes and subsidies.

Q122. Which of the following is true about services in GDP calculation?  

✅ A) Included but difficult to measure  

B) Excluded completely  

C) Counted as transfer payments  

D) Counted as depreciation  

Explanation: Services are included but measurement is challenging.

Q123. Which of the following is NOT a limitation of the Product Method?  

A) Difficulty in measuring services  

B) Difficulty in measuring informal sector  

✅ C) Excludes final goods  

D) Risk of double counting  

Explanation: Final goods are included; the other options are valid limitations.

Q124. Which of the following is true about GDP using the Product Method?  

✅ A) Measures output of goods and services  

B) Measures only factor incomes  

C) Measures only expenditures  

D) Measures only transfer payments  

Explanation: The Product Method measures the output of goods and services produced domestically.

Q125. Which of the following is true about the Product Method in India?  

✅ A) Used by CSO/NSO for GDP calculation  

B) Excludes agricultural output  

C) Excludes services  

D) Includes transfer payments  

Explanation: India’s statistical agencies use the Product Method along with other methods to calculate GDP.

Q126. The Income Method measures national income by:  

✅ A) Summing factor incomes earned in production  

B) Summing expenditures  

C) Summing value added  

D) Summing transfer payments  

Explanation: The Income Method calculates national income by adding all factor incomes such as wages, rent, interest, and profits.

Q127. Which of the following is NOT included in the Income Method?  

A) Wages and salaries  

B) Rent  

✅ C) Transfer payments  

D) Profits  

Explanation: Transfer payments are excluded as they do not represent factor income.

Q128. Which of the following is included in the Income Method?  

✅ A) Interest received by households  

B) Transfer payments  

C) Illegal transactions  

D) Household unpaid services  

Explanation: Interest received by households is a factor income and included in the Income Method.

Q129. Which of the following is true about profits in the Income Method?  

✅ A) Included as factor income  

B) Excluded as transfer payments  

C) Counted as depreciation  

D) Counted as subsidies  

Explanation: Profits are included as part of factor income in the Income Method.

Q130. Which of the following is NOT a component of factor income?  

A) Wages  

B) Rent  

C) Interest  

✅ D) Transfer payments  

Explanation: Transfer payments are excluded as they do not arise from production.

Q131. Which of the following is true about wages in the Income Method?  

✅ A) Included as factor income  

B) Excluded as transfer payments  

C) Counted as depreciation  

D) Counted as subsidies  

Explanation: Wages are included as factor income in the Income Method.

Q132. Which of the following is true about rent in the Income Method?  

✅ A) Included as factor income  

B) Excluded as transfer payments  

C) Counted as depreciation  

D) Counted as subsidies  

Explanation: Rent is included as factor income in the Income Method.

Q133. Which of the following is true about interest in the Income Method?  

✅ A) Included as factor income  

B) Excluded as transfer payments  

C) Counted as depreciation  

D) Counted as subsidies  

Explanation: Interest is included as factor income in the Income Method.

Q134. Which of the following is true about mixed income of self-employed?  

✅ A) Included in the Income Method  

B) Excluded as transfer payments  

C) Counted as depreciation  

D) Counted as subsidies  

Explanation: Mixed income of self-employed is included as it represents factor income.

Q135. Which of the following is NOT included in the Income Method?  

A) Wages  

B) Rent  

C) Interest  

✅ D) Illegal transactions  

Explanation: Illegal transactions are excluded from national income measurement.

Q136. Which of the following is true about depreciation in the Income Method?  

✅ A) Deducted to arrive at net income  

B) Added to factor income  

C) Counted as transfer payments  

D) Counted as subsidies  

Explanation: Depreciation is deducted to calculate net income.

Q137. Which of the following is true about indirect taxes in the Income Method?  

✅ A) Deducted to arrive at factor cost  

B) Added to factor income  

C) Counted as transfer payments  

D) Counted as subsidies  

Explanation: Indirect taxes are deducted to calculate income at factor cost.

Q138. Which of the following is true about subsidies in the Income Method?  

✅ A) Added to arrive at factor cost  

B) Deducted from factor income  

C) Counted as depreciation  

D) Counted as transfer payments  

Explanation: Subsidies are added to calculate income at factor cost.

Q139. Which of the following is true about GDP at factor cost using the Income Method?  

✅ A) Sum of factor incomes earned domestically  

B) Sum of expenditures  

C) Sum of value added  

D) Sum of transfer payments  

Explanation: GDP at factor cost is calculated by summing factor incomes earned domestically.

Q140. Which of the following is NOT a limitation of the Income Method?  

A) Difficulty in measuring mixed income  

B) Difficulty in measuring rent accurately  

✅ C) Excludes final goods  

D) Difficulty in measuring informal sector  

Explanation: Excluding final goods is not a limitation of the Income Method.

Q141. Which of the following is true about the Income Method in India?  

✅ A) Used by CSO/NSO for GDP calculation  

B) Excludes agricultural income  

C) Excludes services  

D) Includes transfer payments  

Explanation: India’s statistical agencies use the Income Method along with other methods to calculate GDP.

Q142. Which of the following is true about factor cost in the Income Method?  

✅ A) Reflects income received by factors of production  

B) Reflects market valuation including taxes  

C) Reflects nominal GDP only  

D) Reflects subsidies only  

Explanation: Factor cost shows income earned by factors of production.

Q143. Which of the following is true about GDP at market price using the Income Method?  

✅ A) Includes indirect taxes and excludes subsidies  

B) Excludes indirect taxes and includes subsidies  

C) Excludes depreciation  

D) Includes transfer payments  

Explanation: GDP at market price includes indirect taxes and excludes subsidies.

Q144. Which of the following is NOT included in factor income?  

A) Wages  

B) Rent  

C) Interest  

✅ D) Transfer payments  

Explanation: Transfer payments are excluded as they do not arise from production.

Q145. Which of the following is true about profits in GDP calculation?  

✅ A) Included as part of factor income  

B) Excluded as transfer payments  

C) Counted as depreciation  

D) Counted as subsidies  

Explanation: Profits are included as part of factor income in GDP calculation.

Q146. Which of the following is true about mixed income in GDP calculation?  

✅ A) Included as part of factor income  

B) Excluded as transfer payments  

C) Counted as depreciation  

D) Counted as subsidies  

Explanation: Mixed income of self-employed is included as factor income.

Q147. Which of the following is NOT a challenge in the Income Method?  

A) Measuring informal sector income  

B) Measuring mixed income  

✅ C) Measuring final goods  

D) Measuring rent accurately  

Explanation: Measuring final goods is not a challenge in the Income Method.

Q148. Which of the following is true about GDP using the Income Method?  

✅ A) Sum of wages, rent, interest, and profits  

B) Sum of expenditures  

C) Sum of value added  

D) Sum of transfer payments  

Explanation: GDP using the Income Method is the sum of wages, rent, interest, and profits.

Q149. Which of the following is true about National Income using the Income Method?  

✅ A) NNP at factor cost  

B) GDP at market price  

C) GNP at market price  

D) NDP at market price  

Explanation: National Income is equivalent to NNP at factor cost.

Q150. Which of the following is NOT included in GDP using the Income Method?  

A) Wages  

B) Rent  

C) Interest  

✅ D) Household unpaid services  

Explanation: Household unpaid services are excluded as they are non-market activities.

Q151. The Expenditure Method measures national income by:  

✅ A) Summing all final expenditures in the economy  

B) Summing factor incomes  

C) Summing value added  

D) Summing transfer payments  

Explanation: The Expenditure Method calculates GDP by adding consumption, investment, government expenditure, and net exports.

Q152. Which of the following is NOT included in the Expenditure Method?  

A) Private consumption  

B) Government expenditure  

✅ C) Transfer payments  

D) Net exports  

Explanation: Transfer payments are excluded as they do not represent expenditure on goods or services.

Q153. Which of the following is included in the Expenditure Method?  

✅ A) Investment expenditure  

B) Transfer payments  

C) Illegal transactions  

D) Household unpaid services  

Explanation: Investment expenditure is included as part of GDP calculation.

Q154. Which of the following is true about government expenditure in the Expenditure Method?  

✅ A) Included as part of final expenditure  

B) Excluded as transfer payments  

C) Counted as depreciation  

D) Counted as subsidies  

Explanation: Government expenditure on goods and services is included in GDP.

Q155. Which of the following is true about net exports in the Expenditure Method?  

✅ A) Exports – Imports  

B) Imports – Exports  

C) Exports only  

D) Imports only  

Explanation: Net exports are calculated as exports minus imports.

Q156. Which of the following is NOT a component of GDP using the Expenditure Method?  

A) Consumption  

B) Investment  

C) Government expenditure  

✅ D) Transfer payments  

Explanation: Transfer payments are excluded as they do not represent production.

Q157. Which of the following is true about consumption expenditure?  

✅ A) Spending by households on goods and services  

B) Spending by government only  

C) Spending by firms only  

D) Spending on transfer payments  

Explanation: Consumption expenditure refers to household spending on goods and services.

Q158. Which of the following is true about investment expenditure?  

✅ A) Spending on capital goods  

B) Spending on transfer payments  

C) Spending on depreciation  

D) Spending on subsidies  

Explanation: Investment expenditure includes spending on capital goods like machinery and infrastructure.

Q159. Which of the following is true about government expenditure?  

✅ A) Spending on goods and services by government  

B) Spending on transfer payments only  

C) Spending on depreciation  

D) Spending on subsidies  

Explanation: Government expenditure includes spending on goods and services, not transfer payments.

Q160. Which of the following is true about exports in GDP calculation?  

✅ A) Included as part of final expenditure  

B) Excluded as transfer payments  

C) Counted as depreciation  

D) Counted as subsidies  

Explanation: Exports are included as they represent demand for domestic goods abroad.

Q161. Which of the following is true about imports in GDP calculation?  

✅ A) Deducted from final expenditure  

B) Added to final expenditure  

C) Counted as depreciation  

D) Counted as subsidies  

Explanation: Imports are deducted to avoid counting foreign production in domestic GDP.

Q162. Which of the following is true about GDP using the Expenditure Method?  

✅ A) C + I + G + (X – M)  

B) Wages + Rent + Interest + Profits  

C) Output – Intermediate consumption  

D) Transfer payments + Subsidies  

Explanation: GDP using the Expenditure Method is calculated as consumption + investment + government expenditure + net exports.

Q163. Which of the following is NOT included in consumption expenditure?  

A) Food  

B) Clothing  

✅ C) Purchase of machinery by firms  

D) Housing services  

Explanation: Purchase of machinery by firms is part of investment expenditure, not consumption.

Q164. Which of the following is true about durable goods in consumption expenditure?  

✅ A) Included as part of household spending  

B) Excluded completely  

C) Counted as depreciation  

D) Counted as subsidies  

Explanation: Durable goods like cars and appliances are included in consumption expenditure.

Q165. Which of the following is true about non-durable goods in consumption expenditure?  

✅ A) Included as part of household spending  

B) Excluded completely  

C) Counted as depreciation  

D) Counted as subsidies  

Explanation: Non-durable goods like food and clothing are included in consumption expenditure.

Q166. Which of the following is true about services in consumption expenditure?  

✅ A) Included as part of household spending  

B) Excluded completely  

C) Counted as depreciation  

D) Counted as subsidies  

Explanation: Services like healthcare and education are included in consumption expenditure.

Q167. Which of the following is NOT included in investment expenditure?  

A) Machinery  

B) Infrastructure  

✅ C) Household consumption  

D) Buildings  

Explanation: Household consumption is part of consumption expenditure, not investment.

Q168. Which of the following is true about gross investment?  

✅ A) Includes depreciation  

B) Excludes depreciation  

C) Includes transfer payments  

D) Includes subsidies  

Explanation: Gross investment includes total spending on capital goods, including depreciation.

Q169. Which of the following is true about net investment?  

✅ A) Gross investment – Depreciation  

B) Gross investment + Depreciation  

C) Gross investment – Subsidies  

D) Gross investment – Transfer payments  

Explanation: Net investment is calculated by subtracting depreciation from gross investment.

Q170. Which of the following is true about government transfer payments?  

✅ A) Excluded from GDP  

B) Included in GDP  

C) Counted as depreciation  

D) Counted as subsidies  

Explanation: Transfer payments are excluded as they do not represent production.

Q171. Which of the following is true about exports in GDP calculation?  

✅ A) Added to domestic expenditure  

B) Deducted from domestic expenditure  

C) Counted as depreciation  

D) Counted as subsidies  

Explanation: Exports are added as they represent demand for domestic goods abroad.

Q172. Which of the following is true about imports in GDP calculation?  

✅ A) Deducted from domestic expenditure  

B) Added to domestic expenditure  

C) Counted as depreciation  

D) Counted as subsidies  

Explanation: Imports are deducted to avoid counting foreign production in domestic GDP.

Q173. Which of the following is true about GDP at market price using the Expenditure Method?  

✅ A) Includes indirect taxes and excludes subsidies  

B) Excludes indirect taxes and includes subsidies  

C) Excludes depreciation  

D) Includes transfer payments  

Explanation: GDP at market price includes indirect taxes and excludes subsidies.

Q174. Which of the following is true about GDP at factor cost using the Expenditure Method?  

✅ A) GDP at market price – Indirect taxes + Subsidies  

B) GDP at market price + Net factor income from abroad  

C) GNP – Depreciation  

D) NNP – Indirect taxes  

Explanation: GDP at factor cost is obtained by adjusting GDP at market price for taxes and subsidies.

Q175. Which of the following is NOT a limitation of the Expenditure Method?  

A) Difficulty in measuring investment accurately  

B) Difficulty in measuring government expenditure  

✅ C) Excludes final goods  

D) Difficulty in measuring informal sector  

Explanation: Final goods are included; the other options are valid limitations.

Q176. Which of the following is true about GDP vs. GNP?  

✅ A) GDP measures output within borders, GNP includes nationals abroad  

B) GDP includes nationals abroad, GNP excludes them  

C) GDP excludes depreciation, GNP includes it  

D) GDP includes transfer payments, GNP excludes them  

Explanation: GDP measures production within domestic borders, while GNP adds net factor income from abroad to include nationals’ production outside.

Q177. Which of the following is true about NDP vs. GDP?  

✅ A) NDP = GDP – Depreciation  

B) NDP = GDP + Depreciation  

C) NDP = GDP – Subsidies  

D) NDP = GDP – Indirect taxes  

Explanation: Net Domestic Product is GDP adjusted for depreciation.

Q178. Which of the following is true about NNP vs. GNP?  

✅ A) NNP = GNP – Depreciation  

B) NNP = GNP + Depreciation  

C) NNP = GNP – Subsidies  

D) NNP = GNP – Indirect taxes  

Explanation: Net National Product is GNP adjusted for depreciation.

Q179. Which of the following is true about GDP at market price vs. GDP at factor cost?  

✅ A) Market price includes indirect taxes, factor cost excludes them  

B) Market price excludes indirect taxes, factor cost includes them  

C) Market price includes depreciation, factor cost excludes it  

D) Market price includes transfer payments, factor cost excludes them  

Explanation: GDP at market price includes indirect taxes and excludes subsidies, while factor cost adjusts for these.

Q180. Which of the following is true about nominal vs. real GDP?  

✅ A) Nominal GDP includes inflation, real GDP excludes it  

B) Nominal GDP excludes inflation, real GDP includes it  

C) Nominal GDP excludes depreciation, real GDP includes it  

D) Nominal GDP excludes subsidies, real GDP includes them  

Explanation: Nominal GDP is measured at current prices, while real GDP is measured at constant prices.

Q181. Which of the following is true about gross vs. net measures?  

✅ A) Net measures exclude depreciation, gross measures include it  

B) Net measures include depreciation, gross measures exclude it  

C) Net measures exclude subsidies, gross measures include them  

D) Net measures exclude indirect taxes, gross measures include them  

Explanation: Net measures exclude depreciation, while gross measures include it.

Q182. Which of the following is true about domestic vs. national measures?  

✅ A) Domestic measures include production within borders, national measures include nationals abroad  

B) Domestic measures include nationals abroad, national measures exclude them  

C) Domestic measures exclude depreciation, national measures include it  

D) Domestic measures exclude subsidies, national measures include them  

Explanation: Domestic measures focus on production within borders, while national measures add net factor income from abroad.

Q183. Which of the following is true about CSO?  

✅ A) Central Statistical Organisation, responsible for national income data  

B) Central Service Organisation, responsible for subsidies  

C) Central Statistical Office, responsible for taxes  

D) Central Statistical Organisation, responsible for transfer payments  

Explanation: CSO was responsible for compiling national income statistics in India.

Q184. Which of the following is true about NSO?  

✅ A) National Statistical Office, responsible for data collection and GDP estimates  

B) National Service Office, responsible for subsidies  

C) National Statistical Organisation, responsible for taxes  

D) National Statistical Office, responsible for transfer payments  

Explanation: NSO is India’s main statistical agency for GDP and national income data.

Q185. Which of the following is true about MOSPI?  

✅ A) Ministry of Statistics and Programme Implementation  

B) Ministry of Subsidies and Programme Implementation  

C) Ministry of Services and Programme Implementation  

D) Ministry of Statistics and Policy Implementation  

Explanation: MOSPI oversees statistical data collection and GDP measurement in India.

Q186. Which of the following is NOT a function of CSO/NSO?  

A) Compiling GDP data  

B) Conducting surveys  

✅ C) Providing subsidies  

D) Publishing national accounts  

Explanation: CSO/NSO compile data and publish accounts but do not provide subsidies.

Q187. Which of the following is true about GDP deflator vs. CPI?  

✅ A) GDP deflator covers all goods and services, CPI covers consumer basket only  

B) GDP deflator covers consumer basket only, CPI covers all goods  

C) GDP deflator covers imports, CPI excludes them  

D) GDP deflator covers subsidies, CPI excludes them  

Explanation: GDP deflator is broader, covering all domestically produced goods and services.

Q188. Which of the following is true about GDP deflator vs. WPI?  

✅ A) GDP deflator covers all goods and services, WPI covers wholesale goods only  

B) GDP deflator covers wholesale goods only, WPI covers all goods  

C) GDP deflator covers imports, WPI excludes them  

D) GDP deflator covers subsidies, WPI excludes them  

Explanation: GDP deflator is broader, while WPI focuses on wholesale goods.

Q189. Which of the following is true about GDP at constant prices vs. GDP at current prices?  

✅ A) Constant prices remove inflation, current prices include it  

B) Constant prices include inflation, current prices exclude it  

C) Constant prices exclude depreciation, current prices include it  

D) Constant prices exclude subsidies, current prices include them  

Explanation: Constant prices measure real growth, while current prices reflect inflation.

Q190. Which of the following is true about GDP vs. NDP?  

✅ A) NDP excludes depreciation, GDP includes it  

B) NDP includes depreciation, GDP excludes it  

C) NDP excludes subsidies, GDP includes them  

D) NDP excludes indirect taxes, GDP includes them  

Explanation: NDP is GDP adjusted for depreciation.

Q191. Which of the following is true about GNP vs. NNP?  

✅ A) NNP excludes depreciation, GNP includes it  

B) NNP includes depreciation, GNP excludes it  

C) NNP excludes subsidies, GNP includes them  

D) NNP excludes indirect taxes, GNP includes them  

Explanation: NNP is GNP adjusted for depreciation.

Q192. Which of the following is true about GDP vs. National Income?  

✅ A) National Income = NNP at factor cost, GDP ≠ National Income  

B) National Income = GDP at market price  

C) National Income = GDP at factor cost  

D) National Income = GDP at constant prices  

Explanation: National Income is NNP at factor cost, not GDP.

Q193. Which of the following is true about GDP vs. Welfare?  

✅ A) GDP is an imperfect measure of welfare  

B) GDP perfectly measures welfare  

C) GDP includes distribution of income  

D) GDP includes environmental costs  

Explanation: GDP does not account for distribution or environmental costs, making it imperfect for welfare.

Q194. Which of the following is true about GDP vs. HDI?  

✅ A) HDI includes health and education, GDP does not  

B) HDI measures only income, GDP measures welfare  

C) HDI measures subsidies, GDP measures taxes  

D) HDI measures depreciation, GDP measures inflation  

Explanation: HDI is broader, including health and education indicators.

Q195. Which of the following is true about GDP vs. PPP?  

✅ A) PPP adjusts for cost of living, GDP does not  

B) PPP measures nominal income, GDP measures real income  

C) PPP measures subsidies, GDP measures taxes  

D) PPP measures depreciation, GDP measures inflation  

Explanation: PPP adjusts income levels for cost of living differences across countries.

Q196. Which of the following is true about GDP vs. CPI?  

✅ A) GDP measures production, CPI measures consumer prices  

B) GDP measures consumer prices, CPI measures production  

C) GDP measures subsidies, CPI measures taxes  

D) GDP measures depreciation, CPI measures inflation  

Explanation: GDP measures production, while CPI measures consumer price changes.

Q197. Which of the following is true about GDP vs. WPI?  

✅ A) GDP measures production, WPI measures wholesale prices  

B) GDP measures wholesale prices, WPI measures production  

C) GDP measures subsidies, WPI measures taxes  

D) GDP measures depreciation, WPI measures inflation  

Explanation: GDP measures production, while WPI measures wholesale price changes.

Q198. Which of the following is true about GDP vs. CPI vs. WPI?  

✅ A) GDP measures output, CPI measures consumer prices, WPI measures wholesale prices  

B) GDP measures consumer prices, CPI measures wholesale prices, WPI measures output  

C) GDP measures subsidies, CPI measures taxes, WPI measures depreciation  

D) GDP measures depreciation, CPI measures inflation, WPI measures subsidies  

Explanation: GDP measures output, CPI measures consumer prices, and WPI measures wholesale prices.

Q199. Which of the following is true about GDP vs. GNP in India?  

✅ A) GDP is more commonly used for policy, GNP less so  

B) GNP is more commonly used for policy, GDP less so  

C) GDP includes nationals abroad, GNP excludes them  

D) GDP excludes depreciation, GNP includes it  

Explanation: India primarily uses GDP for policy and planning purposes.

Q200. Which of the following is true about MOSPI in India?  

✅ A) Responsible for compiling and publishing national income data  

B) Responsible for providing subsidies  

C) Responsible for collecting taxes  

D) Responsible for transfer payments

Q201. Which of the following is a major use of national income data?  

✅ A) Economic planning and policy formulation  

B) Measuring depreciation only  

C) Measuring subsidies only  

D) Measuring transfer payments  

Explanation: National income data is used by governments for planning and policy decisions.

Q202. Which of the following is NOT a use of national income statistics?  

A) International comparison  

B) Measuring economic growth  

✅ C) Measuring household unpaid services  

D) Measuring sectoral contributions  

Explanation: Household unpaid services are excluded from national income statistics.

Q203. Which of the following is true about national income and economic growth?  

✅ A) Higher national income generally indicates higher growth  

B) Higher national income always indicates perfect welfare  

C) Higher national income ignores inequality  

D) Higher national income ignores environment  

Explanation: National income is associated with growth but does not guarantee welfare.

Q204. Which of the following is true about national income and welfare?  

✅ A) Imperfect measure, ignores distribution and environment  

B) Perfect measure of welfare  

C) Includes non-market activities  

D) Includes environmental costs  

Explanation: National income ignores distribution and environmental costs, making it imperfect for welfare.

Q205. Which of the following is true about national income and inequality?  

✅ A) National income does not show distribution  

B) National income perfectly shows distribution  

C) National income includes inequality measures  

D) National income includes environmental costs  

Explanation: National income measures aggregate output but does not reflect distribution.

Q206. Which of the following is true about national income and environment?  

✅ A) National income ignores environmental costs  

B) National income includes environmental costs  

C) National income measures pollution directly  

D) National income includes sustainability  

Explanation: National income statistics do not account for environmental degradation.

Q207. Which of the following is NOT a limitation of national income statistics?  

A) Ignores non-market activities  

B) Ignores distribution of income  

✅ C) Includes depreciation  

D) Ignores environmental costs  

Explanation: Depreciation is part of measurement, not a limitation of national income statistics.

Q208. Which of the following is true about national income data in developing countries?  

✅ A) Less reliable due to informal sector  

B) More reliable than developed countries  

C) Perfectly accurate  

D) Ignores inflation  

Explanation: National income data in developing countries is less reliable due to large informal sectors.

Q209. Which of the following is true about national income data in developed countries?  

✅ A) More reliable due to better data collection  

B) Less reliable due to informal sector  

C) Perfectly accurate  

D) Ignores inflation  

Explanation: Developed countries have better statistical systems, making national income data more reliable.

Q210. Which of the following is true about national income and policy formulation?  

✅ A) Helps in planning and policy decisions  

B) Measures only depreciation  

C) Measures only subsidies  

D) Measures only taxes  

Explanation: National income data is crucial for economic planning and policy formulation.

Q211. Which of the following is true about national income and international comparison?  

✅ A) Used to compare income levels across countries  

B) Used to measure subsidies only  

C) Used to measure depreciation only  

D) Used to measure transfer payments  

Explanation: National income data is used for international comparisons of economic performance.

Q212. Which of the following is true about PPP-adjusted national income?  

✅ A) Provides better international comparison  

B) Provides nominal values only  

C) Provides inflation-adjusted values only  

D) Provides depreciation-adjusted values only  

Explanation: PPP-adjusted national income allows meaningful comparisons across countries.

Q213. Which of the following is true about HDI vs. National Income?  

✅ A) HDI includes health and education, National Income does not  

B) HDI measures only income, National Income measures welfare  

C) HDI measures subsidies, National Income measures taxes  

D) HDI measures depreciation, National Income measures inflation  

Explanation: HDI is broader, including health and education indicators.

Q214. Which of the following is true about national income and living standards?  

✅ A) Higher per capita income generally indicates higher living standards  

B) Higher per capita income always indicates perfect welfare  

C) Higher per capita income ignores inequality  

D) Higher per capita income ignores environment  

Explanation: Per capita income is associated with living standards but does not guarantee welfare.

Q215. Which of the following is NOT a use of national income statistics?  

A) Measuring economic growth  

B) Measuring sectoral contributions  

✅ C) Measuring illegal transactions  

D) International comparison  

Explanation: Illegal transactions are excluded from national income statistics.

Q216. Which of the following is true about national income and savings?  

✅ A) Higher national income generally leads to higher savings  

B) Higher national income always leads to perfect welfare  

C) Higher national income ignores inequality  

D) Higher national income ignores environment  

Explanation: Higher national income is associated with higher savings, though distribution matters.

Q217. Which of the following is true about national income and investment?  

✅ A) Higher national income generally leads to higher investment  

B) Higher national income always leads to perfect welfare  

C) Higher national income ignores inequality  

D) Higher national income ignores environment  

Explanation: Higher national income is associated with higher investment, though distribution matters.

Q218. Which of the following is true about national income and employment?  

✅ A) Higher national income generally indicates higher employment  

B) Higher national income always indicates perfect welfare  

C) Higher national income ignores inequality  

D) Higher national income ignores environment  

Explanation: Higher national income is associated with higher employment, though not guaranteed.

Q219. Which of the following is true about national income and inflation?  

✅ A) National income statistics must be adjusted for inflation  

B) National income statistics ignore inflation  

C) National income statistics measure inflation directly  

D) National income statistics include subsidies  

Explanation: National income statistics are adjusted for inflation to measure real growth.

Q220. Which of the following is true about national income and fiscal policy?  

✅ A) Used to design taxation and expenditure policies  

B) Used to measure subsidies only  

C) Used to measure depreciation only  

D) Used to measure transfer payments  

Explanation: National income data is used to design fiscal policies.

Q221. Which of the following is true about national income and monetary policy?  

✅ A) Used to design credit and interest rate policies  

B) Used to measure subsidies only  

C) Used to measure depreciation only  

D) Used to measure transfer payments  

Explanation: National income data is used to design monetary policies.

Q222. Which of the following is true about national income and welfare economics?  

✅ A) Imperfect measure, ignores distribution and environment  

B) Perfect measure of welfare  

C) Includes non-market activities  

D) Includes environmental costs  

Explanation: National income is an imperfect measure of welfare.

Q223. Which of the following is NOT a limitation of national income statistics?  

A) Ignores non-market activities  

B) Ignores distribution of income  

✅ C) Includes depreciation  

D) Ignores environmental costs  

Explanation: Depreciation is part of measurement, not a limitation of national income statistics.

Q224. Which of the following is true about national income and development planning?  

✅ A) Used to set targets and allocate resources  

B) Used to measure subsidies only  

C) Used to measure depreciation only  

D) Used to measure transfer payments  

Explanation: National income data is used in development planning to set targets and allocate resources.

Q225. Which of the following is true about national income and welfare analysis?  

✅ A) Provides aggregate measure but ignores distribution  

B) Perfect measure of welfare  

C) Includes non-market activities  

D) Includes environmental costs  

Explanation: National income provides aggregate measures but ignores distribution and environmental costs.

Q226. Which of the following is a major problem in measuring national income in India?  

✅ A) Large informal sector  

B) Accurate data collection  

C) High literacy rate  

D) Advanced statistical systems  

Explanation: India’s large informal sector makes accurate measurement of national income difficult.

Q227. Which of the following is NOT a problem in measuring national income?  

A) Non-monetary transactions  

B) Black money  

✅ C) Depreciation adjustment  

D) Informal sector  

Explanation: Depreciation adjustment is part of standard measurement, not a problem.

Q228. Which of the following is true about black money in national income measurement?  

✅ A) Excluded as it is unreported  

B) Included as part of GDP  

C) Counted as subsidies  

D) Counted as depreciation  

Explanation: Black money is excluded because it is unreported and illegal.

Q229. Which of the following is true about non-monetary transactions?  

✅ A) Difficult to measure and often excluded  

B) Easy to measure and always included  

C) Counted as transfer payments  

D) Counted as depreciation  

Explanation: Non-monetary transactions like barter are difficult to measure and often excluded.

Q230. Which of the following is NOT a limitation of national income statistics in developing countries?  

A) Informal sector  

B) Black money  

✅ C) Advanced statistical systems  

D) Non-monetary transactions  

Explanation: Advanced statistical systems are a strength, not a limitation.

Q231. Which of the following is true about household unpaid services?  

✅ A) Excluded from national income  

B) Included as factor income  

C) Counted as depreciation  

D) Counted as subsidies  

Explanation: Household unpaid services are excluded as they are non-market activities.

Q232. Which of the following is true about illegal activities in national income measurement?  

✅ A) Excluded from GDP  

B) Included in GDP  

C) Counted as subsidies  

D) Counted as depreciation  

Explanation: Illegal activities are excluded from GDP as they are not officially recorded.

Q233. Which of the following is true about subsistence farming in national income measurement?  

✅ A) Difficult to measure accurately  

B) Excluded completely  

C) Counted as transfer payments  

D) Counted as depreciation  

Explanation: Subsistence farming is difficult to measure as much of it is consumed directly.

Q234. Which of the following is NOT a problem in measuring services?  

A) Informal sector services  

B) Household unpaid services  

✅ C) Industrial output  

D) Non-monetary transactions  

Explanation: Industrial output is easier to measure; services pose greater challenges.

Q235. Which of the following is true about barter transactions?  

✅ A) Difficult to measure and often excluded  

B) Easy to measure and always included  

C) Counted as transfer payments  

D) Counted as depreciation  

Explanation: Barter transactions are difficult to measure and often excluded from GDP.

Q236. Which of the following is true about informal sector output?  

✅ A) Difficult to measure accurately  

B) Easy to measure and always included  

C) Counted as transfer payments  

D) Counted as depreciation  

Explanation: Informal sector output is difficult to measure due to lack of records.

Q237. Which of the following is NOT a limitation of national income statistics?  

A) Informal sector  

B) Black money  

C) Non-monetary transactions  

✅ D) Accurate industrial data  

Explanation: Industrial data is generally accurate; informal and unrecorded activities are limitations.

Q238. Which of the following is true about black money in India?  

✅ A) Excluded from GDP  

B) Included in GDP  

C) Counted as subsidies  

D) Counted as depreciation  

Explanation: Black money is excluded as it is unreported and illegal.

Q239. Which of the following is true about transfer payments in national income measurement?  

✅ A) Excluded as they do not represent production  

B) Included as factor income  

C) Counted as depreciation  

D) Counted as subsidies  

Explanation: Transfer payments are excluded as they do not arise from production.

Q240. Which of the following is true about informal employment?  

✅ A) Difficult to measure accurately  

B) Easy to measure and always included  

C) Counted as transfer payments  

D) Counted as depreciation  

Explanation: Informal employment is difficult to measure due to lack of records.

Q241. Which of the following is NOT a problem in measuring national income in India?  

A) Informal sector  

B) Black money  

C) Non-monetary transactions  

✅ D) Accurate industrial surveys  

Explanation: Industrial surveys are relatively accurate compared to informal activities.

Q242. Which of the following is true about subsistence agriculture?  

✅ A) Difficult to measure as output is consumed directly  

B) Easy to measure and always included  

C) Counted as transfer payments  

D) Counted as depreciation  

Explanation: Subsistence agriculture is difficult to measure since much of the output is not marketed.

Q243. Which of the following is true about illegal production?  

✅ A) Excluded from GDP  

B) Included in GDP  

C) Counted as subsidies  

D) Counted as depreciation  

Explanation: Illegal production is excluded as it is not officially recorded.

Q244. Which of the following is true about informal sector services?  

✅ A) Difficult to measure accurately  

B) Easy to measure and always included  

C) Counted as transfer payments  

D) Counted as depreciation  

Explanation: Informal sector services are difficult to measure due to lack of records.

Q245. Which of the following is NOT a limitation of national income statistics?  

A) Informal sector  

B) Black money  

C) Non-monetary transactions  

✅ D) Accurate government expenditure data  

Explanation: Government expenditure data is relatively accurate; informal activities are limitations.

Q246. Which of the following is true about barter in rural areas?  

✅ A) Difficult to measure and often excluded  

B) Easy to measure and always included  

C) Counted as transfer payments  

D) Counted as depreciation  

Explanation: Barter transactions are difficult to measure and often excluded from GDP.

Q247. Which of the following is true about unpaid household work?  

✅ A) Excluded from GDP  

B) Included as factor income  

C) Counted as depreciation  

D) Counted as subsidies  

Explanation: Unpaid household work is excluded as it is non-market activity.

Q248. Which of the following is true about black economy?  

✅ A) Excluded from official GDP  

B) Included in official GDP  

C) Counted as subsidies  

D) Counted as depreciation  

Explanation: The black economy is excluded as it is unreported and illegal.

Q249. Which of the following is true about informal trade?  

✅ A) Difficult to measure accurately  

B) Easy to measure and always included  

C) Counted as transfer payments  

D) Counted as depreciation  

Explanation: Informal trade is difficult to measure due to lack of records.

Q250. Which of the following is NOT a problem in measuring national income?  

A) Informal sector  

B) Black money  

C) Non-monetary transactions  

✅ D) Accurate agricultural surveys  

Explanation: Agricultural surveys are relatively accurate; informal and unrecorded activities are the main problems.

Q251. Which of the following is true about international comparison of national income?  

✅ A) PPP-adjusted figures provide better comparison  

B) Nominal GDP figures are sufficient  

C) Only depreciation matters in comparison  

D) Only subsidies matter in comparison  

Explanation: PPP-adjusted figures account for cost of living differences, making international comparisons more meaningful.

Q252. Which of the following is NOT a limitation of nominal GDP in international comparison?  

A) Ignores cost of living differences  

B) Ignores exchange rate fluctuations  

✅ C) Includes depreciation  

D) Ignores purchasing power  

Explanation: Depreciation is not a limitation specific to nominal GDP in international comparison.

Q253. Which of the following is true about PPP?  

✅ A) Compares cost of a basket of goods across countries  

B) Compares only nominal exchange rates  

C) Compares only subsidies  

D) Compares only depreciation  

Explanation: PPP compares the cost of a basket of goods and services across countries to measure relative purchasing power.

Q254. Which of the following is true about PPP-adjusted GDP?  

✅ A) Provides better measure of living standards across countries  

B) Provides nominal values only  

C) Provides depreciation-adjusted values only  

D) Provides subsidies-adjusted values only  

Explanation: PPP-adjusted GDP allows meaningful comparison of living standards across countries.

Q255. Which of the following is NOT a limitation of PPP?  

A) Differences in consumption patterns  

B) Differences in quality of goods  

✅ C) Includes depreciation  

D) Differences in services  

Explanation: Depreciation is unrelated to PPP; the other options are valid limitations.

Q256. Which of the following is true about HDI?  

✅ A) Includes health, education, and income indicators  

B) Includes only income indicators  

C) Includes only subsidies  

D) Includes only depreciation  

Explanation: HDI is a composite index including health, education, and income.

Q257. Which of the following is true about HDI vs. GDP?  

✅ A) HDI is broader, including social indicators  

B) GDP is broader, including social indicators  

C) Both measure only income  

D) Both measure subsidies  

Explanation: HDI is broader as it includes health and education indicators.

Q258. Which of the following is true about HDI vs. National Income?  

✅ A) HDI includes welfare indicators, National Income does not  

B) HDI measures only income, National Income measures welfare  

C) HDI measures subsidies, National Income measures taxes  

D) HDI measures depreciation, National Income measures inflation  

Explanation: HDI includes welfare indicators like health and education, while National Income focuses on income.

Q259. Which of the following is true about GDP per capita vs. HDI?  

✅ A) GDP per capita measures average income, HDI measures broader welfare  

B) GDP per capita measures welfare, HDI measures only income  

C) GDP per capita measures subsidies, HDI measures taxes  

D) GDP per capita measures depreciation, HDI measures inflation  

Explanation: GDP per capita measures average income, while HDI includes broader welfare indicators.

Q260. Which of the following is true about international comparison using GDP per capita?  

✅ A) Provides income comparison but ignores welfare  

B) Provides welfare comparison but ignores income  

C) Provides subsidy comparison only  

D) Provides depreciation comparison only  

Explanation: GDP per capita provides income comparison but ignores welfare aspects.

Q261. Which of the following is true about PPP-adjusted per capita income?  

✅ A) Provides better comparison of living standards  

B) Provides nominal values only  

C) Provides depreciation-adjusted values only  

D) Provides subsidies-adjusted values only  

Explanation: PPP-adjusted per capita income allows meaningful comparison of living standards across countries.

Q262. Which of the following is NOT a limitation of GDP in international comparison?  

A) Ignores cost of living differences  

B) Ignores distribution of income  

✅ C) Includes depreciation  

D) Ignores welfare indicators  

Explanation: Depreciation is not a limitation specific to GDP in international comparison.

Q263. Which of the following is true about HDI ranking?  

✅ A) Countries are ranked based on health, education, and income  

B) Countries are ranked based on income only  

C) Countries are ranked based on subsidies only  

D) Countries are ranked based on depreciation only  

Explanation: HDI ranks countries based on health, education, and income indicators.

Q264. Which of the following is true about HDI vs. PPP?  

✅ A) HDI measures welfare, PPP measures cost of living  

B) HDI measures cost of living, PPP measures welfare  

C) Both measure subsidies  

D) Both measure depreciation  

Explanation: HDI measures welfare indicators, while PPP measures cost of living differences.

Q265. Which of the following is true about HDI vs. National Income statistics?  

✅ A) HDI is broader, including welfare indicators  

B) National Income is broader, including welfare indicators  

C) Both measure only income  

D) Both measure subsidies  

Explanation: HDI is broader as it includes welfare indicators.

Q266. Which of the following is true about GDP vs. HDI in policy use?  

✅ A) GDP used for economic planning, HDI for welfare analysis  

B) GDP used for welfare analysis, HDI for economic planning  

C) Both used only for subsidies  

D) Both used only for depreciation  

Explanation: GDP is used for economic planning, while HDI is used for welfare analysis.

Q267. Which of the following is true about PPP vs. exchange rate comparison?  

✅ A) PPP adjusts for cost of living, exchange rates do not  

B) PPP measures nominal values, exchange rates measure welfare  

C) PPP measures subsidies, exchange rates measure taxes  

D) PPP measures depreciation, exchange rates measure inflation  

Explanation: PPP adjusts for cost of living differences, while exchange rates do not.

Q268. Which of the following is true about PPP-adjusted GDP vs. nominal GDP?  

✅ A) PPP-adjusted GDP provides better welfare comparison  

B) Nominal GDP provides better welfare comparison  

C) Both provide only nominal values  

D) Both provide only depreciation values  

Explanation: PPP-adjusted GDP provides better welfare comparison across countries.

Q269. Which of the following is true about HDI vs. GDP growth rate?  

✅ A) HDI measures welfare, GDP growth measures output growth  

B) HDI measures output growth, GDP growth measures welfare  

C) Both measure subsidies  

D) Both measure depreciation  

Explanation: HDI measures welfare indicators, while GDP growth measures output growth.

Q270. Which of the following is true about HDI vs. per capita income?  

✅ A) HDI is broader, including health and education  

B) Per capita income is broader, including welfare indicators  

C) Both measure only income  

D) Both measure subsidies  

Explanation: HDI is broader as it includes health and education indicators.

Q271. Which of the following is true about HDI vs. GNP?  

✅ A) HDI includes welfare indicators, GNP does not  

B) HDI measures only income, GNP measures welfare  

C) HDI measures subsidies, GNP measures taxes  

D) HDI measures depreciation, GNP measures inflation  

Explanation: HDI includes welfare indicators, while GNP focuses on income.

Q272. Which of the following is true about HDI vs. NNP?  

✅ A) HDI includes welfare indicators, NNP does not  

B) HDI measures only income, NNP measures welfare  

C) HDI measures subsidies, NNP measures taxes  

D) HDI measures depreciation, NNP measures inflation  

Explanation: HDI includes welfare indicators, while NNP focuses on income.

Q273. Which of the following is true about HDI vs. CPI?  

✅ A) HDI measures welfare, CPI measures consumer prices  

B) HDI measures consumer prices, CPI measures welfare  

C) Both measure subsidies  

D) Both measure depreciation  

Explanation: HDI measures welfare indicators, while CPI measures consumer price changes.

Q274. Which of the following is true about HDI vs. WPI?  

✅ A) HDI measures welfare, WPI measures wholesale prices  

B) HDI measures wholesale prices, WPI measures welfare  

C) Both measure subsidies  

D) Both measure depreciation  

Explanation: HDI measures welfare indicators, while WPI measures wholesale price changes.

Q275. Which of the following is true about HDI vs. GDP per capita?  

✅ A) HDI is broader, including health and education  

B) GDP per capita is broader, including welfare indicators  

C) Both measure only income  

D) Both measure subsidies  

Explanation: HDI is broader as it includes health and education indicators, while GDP per capita measures only average income.

Q276. Which of the following is true about India’s national income trends?  

✅ A) Services sector contributes the largest share  

B) Agriculture sector contributes the largest share  

C) Industry sector contributes the largest share  

D) Mining sector contributes the largest share  

Explanation: In recent decades, the services sector has become the largest contributor to India’s GDP.

Q277. Which of the following is true about agriculture’s share in India’s GDP?  

✅ A) Declining over time  

B) Increasing over time  

C) Constant over time  

D) Higher than services sector  

Explanation: Agriculture’s share in GDP has declined as the economy diversified into industry and services.

Q278. Which of the following is true about industry’s share in India’s GDP?  

✅ A) Moderate, less than services but more than agriculture  

B) Largest share of GDP  

C) Smallest share of GDP  

D) Equal to agriculture  

Explanation: Industry contributes moderately, between agriculture and services.

Q279. Which of the following is true about services sector in India?  

✅ A) Largest contributor to GDP  

B) Smallest contributor to GDP  

C) Equal to agriculture  

D) Equal to industry  

Explanation: Services sector is the largest contributor to India’s GDP.

Q280. Which of the following is true about India’s GDP growth in recent decades?  

✅ A) Driven largely by services sector  

B) Driven largely by agriculture  

C) Driven largely by mining  

D) Driven largely by subsidies  

Explanation: Services sector has driven India’s GDP growth in recent decades.

Q281. Which of the following is true about agriculture’s role in employment?  

✅ A) Provides largest share of employment despite declining GDP share  

B) Provides smallest share of employment  

C) Provides equal share as services  

D) Provides equal share as industry  

Explanation: Agriculture still provides the largest share of employment in India.

Q282. Which of the following is true about India’s GDP composition?  

✅ A) Services > Industry > Agriculture  

B) Agriculture > Industry > Services  

C) Industry > Services > Agriculture  

D) Agriculture > Services > Industry  

Explanation: Services sector contributes the most, followed by industry, then agriculture.

Q283. Which of the following is true about India’s GDP growth rate?  

✅ A) Higher in post-liberalisation period  

B) Lower in post-liberalisation period  

C) Constant across decades  

D) Driven only by agriculture  

Explanation: India’s GDP growth rate increased significantly after liberalisation in 1991.

Q284. Which of the following is true about India’s per capita income?  

✅ A) Increased significantly in recent decades  

B) Declined significantly in recent decades  

C) Constant across decades  

D) Driven only by agriculture  

Explanation: India’s per capita income has increased significantly due to economic growth.

Q285. Which of the following is true about India’s informal sector?  

✅ A) Contributes significantly but difficult to measure  

B) Contributes insignificantly  

C) Counted as transfer payments  

D) Counted as depreciation  

Explanation: The informal sector contributes significantly but is difficult to measure accurately.

Q286. Which of the following is true about India’s black economy?  

✅ A) Excluded from official GDP  

B) Included in official GDP  

C) Counted as subsidies  

D) Counted as depreciation  

Explanation: The black economy is excluded as it is unreported and illegal.

Q287. Which of the following is true about India’s national income data reliability?  

✅ A) Less reliable due to informal sector and black money  

B) Perfectly reliable  

C) More reliable than developed countries  

D) Ignores inflation  

Explanation: India’s national income data is less reliable due to informal sector and black money.

Q288. Which of the following is true about India’s GDP growth drivers?  

✅ A) Services sector, IT, and trade  

B) Agriculture only  

C) Mining only  

D) Subsidies only  

Explanation: Services sector, IT, and trade have driven India’s GDP growth.

Q289. Which of the following is true about India’s sectoral employment trends?  

✅ A) Agriculture employs most, services employ growing share  

B) Services employ most, agriculture employs least  

C) Industry employs most, services employ least  

D) Mining employs most  

Explanation: Agriculture employs most, but services are growing in employment share.

Q290. Which of the following is true about India’s GDP measurement agencies?  

✅ A) NSO under MOSPI  

B) RBI  

C) Ministry of Finance  

D) NITI Aayog  

Explanation: NSO under MOSPI is responsible for GDP measurement.

Q291. Which of the following is true about India’s GDP growth volatility?  

✅ A) Agriculture causes fluctuations due to monsoons  

B) Services cause fluctuations due to IT  

C) Industry causes fluctuations due to mining  

D) Subsidies cause fluctuations  

Explanation: Agriculture causes GDP volatility due to dependence on monsoons.

Q292. Which of the following is true about India’s GDP growth post-1991 reforms?  

✅ A) Accelerated significantly  

B) Declined significantly  

C) Constant across decades  

D) Driven only by agriculture  

Explanation: India’s GDP growth accelerated significantly after 1991 reforms.

Q293. Which of the following is true about India’s GDP growth in global context?  

✅ A) Among fastest-growing economies  

B) Among slowest-growing economies  

C) Constant across decades  

D) Driven only by agriculture  

Explanation: India is among the fastest-growing economies globally.

Q294. Which of the following is true about India’s GDP per capita in global comparison?  

✅ A) Lower than developed countries but rising  

B) Higher than developed countries  

C) Constant across decades  

D) Driven only by agriculture  

Explanation: India’s GDP per capita is lower than developed countries but rising steadily.

Q295. Which of the following is true about India’s HDI vs. GDP?  

✅ A) HDI lower than GDP rank due to social indicators  

B) HDI higher than GDP rank  

C) HDI equal to GDP rank  

D) HDI driven only by agriculture  

Explanation: India’s HDI rank is lower than GDP rank due to weaker social indicators.

Q296. Which of the following is true about India’s sectoral GDP composition?  

✅ A) Services largest, agriculture smallest  

B) Agriculture largest, services smallest  

C) Industry largest, agriculture smallest  

D) Mining largest, services smallest  

Explanation: Services contribute the largest share, agriculture the smallest.

Q297. Which of the following is true about India’s GDP growth challenges?  

✅ A) Inequality, informal sector, environmental issues  

B) Perfect welfare distribution  

C) No informal sector  

D) No environmental issues  

Explanation: India’s GDP growth faces challenges like inequality, informal sector, and environmental issues.

Q298. Which of the following is true about India’s GDP growth opportunities?  

✅ A) Services, IT, manufacturing, infrastructure  

B) Agriculture only  

C) Mining only  

D) Subsidies only  

Explanation: India’s GDP growth opportunities lie in services, IT, manufacturing, and infrastructure.

Q299. Which of the following is true about India’s GDP growth sustainability?  

✅ A) Requires addressing inequality and environment  

B) Requires ignoring inequality  

C) Requires ignoring environment  

D) Requires only subsidies  

Explanation: Sustainable GDP growth requires addressing inequality and environmental issues.

Q300. Which of the following is true about India’s national income statistics overall?  

✅ A) Useful but imperfect due to limitations  

B) Perfect measure of welfare  

C) Includes illegal transactions  

D) Includes household unpaid services  

Explanation: National income statistics are useful but imperfect due to limitations like informal sector, black money, and exclusion of non-market activities.