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Q1Indian Economy·National Income AccountingPYQ 2016
With the new GDP series (base year 2011-12), the Central Statistics Office replaced GDP at factor cost with:
- AGDP at market prices
- BGross Value Added (GVA) at basic pricesCorrect
- CNet National Product at factor cost
- DGVA at market prices
Explanation
Correct. In the new series, GVA at basic prices replaced GDP at factor cost as the measure of sectoral economic performance. GDP at market prices became the headline GDP number. The relationship is: GDP at market prices = GVA at basic prices + Product taxes - Product subsidies.
Q2Indian Economy·National Income AccountingPYQ 2015
In the new GDP series, which of the following data sources is used extensively for estimating private corporate sector performance?
- AAnnual Survey of Industries (ASI)
- BMCA-21 database of the Ministry of Corporate AffairsCorrect
- CCensus of India
- DConsumer Expenditure Survey
Explanation
Correct. The new GDP series (2011-12 base) extensively uses the MCA-21 database, which contains financial data from corporate filings with the Ministry of Corporate Affairs. This was a major methodological change that expanded coverage of the private corporate sector and contributed to the higher GDP estimates in the new series.
Q3Indian Economy·National Income AccountingPYQ 2015
Consider the following statements:
1. The real GDP growth rate in India has steadily increased in every year of the last decade.
2. India's nominal GDP has consistently increased in the last decade.
Which of the statements given above is/are correct?
- A1 only
- B2 onlyCorrect
- CBoth 1 and 2
- DNeither 1 nor 2
Explanation
Correct. Statement 1 is false because real GDP growth rate has fluctuated, including a contraction during COVID-19. Statement 2 is true because nominal GDP (at current prices) has consistently increased year-on-year due to the combined effect of real output growth and inflation, even when real GDP contracted.
Q4Indian Economy·National Income AccountingPYQ 2012
Which of the following sectors is NOT included in the eight core industries index of India?
- ACoal
- BSteel
- CTextilesCorrect
- DCement
Explanation
Correct. Textiles is NOT one of the eight core industries. The eight core industries are: Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, and Electricity. Together they have a combined weight of about 40.27% in the IIP.
Q5Indian Economy·National Income AccountingPYQ 2007
The correct decreasing order of sectoral contribution to India's GDP is:
- AServices - Industry - AgricultureCorrect
- BServices - Agriculture - Industry
- CIndustry - Services - Agriculture
- DAgriculture - Services - Industry
Explanation
Correct. As of recent years, services contribute about 54% to India's GVA, industry about 26-28%, and agriculture about 15-18%. This services-industry-agriculture order has been stable since the early 2000s.
Q6Indian Economy·National Income AccountingPYQ 2000
Which of the following is the correct formula for National Income in terms of national income aggregates?
- AGDP at market prices + Net factor income from abroad
- BNNP at factor costCorrect
- CGDP at factor cost - Depreciation
- DGNP at market prices - Indirect taxes
Explanation
Correct. National Income = NNP at factor cost. This is the standard definition. It can be derived as: GDP at market prices + NFIA - Depreciation - Net indirect taxes (or equivalently, Net product taxes). It represents the total income earned by the normal residents of a country.
Q7Indian Economy·National Income AccountingPYQ 1999
Consider the following statements about the tertiary sector in India:
1. Its share in India's GDP has shown an increasing trend since the 1980s.
2. It employs the largest share of India's workforce.
Which of the statements given above is/are correct?
- A1 onlyCorrect
- B2 only
- CBoth 1 and 2
- DNeither 1 nor 2
Explanation
Correct. Statement 1 is true — the tertiary (services) sector's share in GDP has been rising consistently since the 1980s, from about 40% to over 54%. Statement 2 is false — despite contributing the most to GDP, the services sector does not employ the largest share of the workforce. Agriculture still employs the largest share (about 42-45% of workers), highlighting the structural mismatch in India's economy.
Q8Indian Economy·National Income Accounting
Consider the following statements:
1. India uses the financial year (April-March) for national accounts.
2. The NSO is headed by the Chief Statistician of India.
3. The base year for GDP should ideally be a year of economic normalcy.
Which of the statements given above is/are correct?
- A1 and 2 only
- B1 and 3 only
- C2 and 3 only
- D1, 2 and 3Correct
Explanation
Correct. Statement 1: India follows the April-March financial year for national accounts, unlike many Western countries using calendar year. Statement 2: The NSO is headed by the Secretary (Statistics) who also serves as the Chief Statistician of India. Statement 3: The base year should be a 'normal' year without major disruptions (like droughts, pandemics, or wars) so that the price structure used as benchmark is representative and stable.
Q9Indian Economy·National Income Accounting
Which of the following is the correct sequence of GDP estimation releases by the NSO during and after a financial year?
- AFirst Advance Estimate → Provisional Estimate → Second Advance Estimate → Revised Estimates
- BFirst Advance Estimate → Second Advance Estimate → Provisional Estimate → Revised EstimatesCorrect
- CProvisional Estimate → First Advance Estimate → Second Advance Estimate → Revised Estimates
- DSecond Advance Estimate → First Advance Estimate → Provisional Estimate → Revised Estimates
Explanation
Correct. The sequence is: First Advance Estimate (January) → Second Advance Estimate (late February) → Provisional Estimate (May, after year ends) → First Revised Estimate (January, next year) → Second Revised Estimate → Third Revised Estimate. Each successive estimate uses more comprehensive data.
Q10Indian Economy·National Income Accounting
Which of the following correctly describes the difference between 'factor cost' and 'basic prices'?
- AThey are identical concepts with no difference
- BBasic prices include production subsidies but exclude all taxes; factor cost excludes both production taxes and subsidies
- CBasic prices include other subsidies on production but exclude product taxes; factor cost excludes all taxes and includes all subsidiesCorrect
- DFactor cost is used only in the new GDP series while basic prices were used in the old series
Explanation
Correct. Basic prices = Factor cost + Other taxes on production - Other subsidies on production. In other words, basic prices include production taxes and subsidies on production within the price, while factor cost strips out all taxes and adds back all subsidies. The new GDP series uses basic prices for GVA, while the old series used factor cost. The difference is usually small but conceptually important.
Q11Indian Economy·National Income Accounting
The 'Economic Census' conducted in India provides data on:
- AOnly GDP and national income figures
- BThe geographical distribution and characteristics of all entrepreneurial units in the countryCorrect
- COnly the population count and demographic details
- DOnly agricultural production and land use patterns
Explanation
Correct. The Economic Census is a complete count of all establishments/entrepreneurial units (other than crop production and plantation) in the country. It provides data on the number, type, and characteristics of enterprises, their employment, and geographical distribution. The 7th Economic Census (2019) was conducted by MoSPI and used digital technology for enumeration.
Q12Indian Economy·National Income Accounting
The relationship between Gross National Disposable Income (GNDI) and GNP is:
- AGNDI = GNP - Depreciation
- BGNDI = GNP + Net current transfers from abroadCorrect
- CGNDI = GNP - Net indirect taxes
- DGNDI = GNP + Net capital transfers from abroad
Explanation
Correct. Gross National Disposable Income (GNDI) = GNP + Net current transfers from the rest of the world. Current transfers include remittances from workers abroad, grants, gifts, and donations. GNDI represents the total income available to a nation's residents for consumption and saving, including transfer receipts from abroad.