Economics Questions (MCQs) for Competitive Examinations
Economics Multiple Choice Questions (MCQs) for General Studies and GK preparation of SSC, NDA, CDS, UPSC, UPPSC and State PSC Examinations.
31. What is output per unit of input of labor known as?
[A] Labor Productivity
[B] Production ability
[C] Capacity
[D] None of the above
Show Answer
Correct Answer: A [Labor Productivity]
Notes:
Productivity, in economics, measures output per unit of input, such as labor, capital, or any other resource – and is typically calculated for the economy as a whole, as a ratio of GDP to hours worked.
32. Which type of Economy is Indian Economy?
[A] Mixed
[B] Market
[C] Capitalist
[D] Socialist
Show Answer
Correct Answer: A [Mixed]
Notes:
Indian Economy is a mixed economy where both state and market play a key role in the management of economy. In India both the Public sector as well as the private sector coexist.
33. Which of the following is considered as transfer payment?
[A] College fees
[B] Bank loan
[C] Bonus of employees
[D] Unemployed allowance by the government
Show Answer
Correct Answer: D [Unemployed allowance by the government]
Notes:
Transfer payment– is the payment by the government in grants, allowances, pensions etc to people such as pensioners, widows, sick or unemployed people or others with little or no income. It does not include subsidies given by the government .
Ex: PM KISAN amount transfer
34. Which organization calculates GDP in India?
[A] CSO
[B] NSSO
[C] Department of Economic Affairs
[D] ISO
Show Answer
Correct Answer: A [CSO]
Notes:
The Central Statistics Office (CSO), under the Ministry of Statistics and Program Implementation(MoSPI), is the responsible authority for macroeconomic data gathering and statistical record keeping. They publish the GDP
35. What is the aggregate of the gross balances of primary income of all resident institutional units knows as?
[A] Gross domestic Product
[B] Gross national product
[C] Gross National income
[D] Net national product
Show Answer
Correct Answer: C [Gross National income]
Notes:
Gross National Income is the aggregate value of the gross balances of the primary income of all resident institutional units.
36. Which of the following are part of National income?
[A] Value of all goods and services produced in a financial year
[B] An reused good sold in that financial year
[C] Service rendered by housewife
[D] None of the above
Show Answer
Correct Answer: A [Value of all goods and services produced in a financial year]
Notes:
In the calculation of national income, the value of goods and services produced in a year is added. While the value of old sold goods and the services of the housewife is not added.
37. What is subtracted from Gross Value Added to get Net Value Added?
[A] Depreciation
[B] Value added
[C] Production flow
[D] Investment
Show Answer
Correct Answer: A [Depreciation]
Notes:
Net Value Added is obtained by subtracting depreciation from Gross Value Added. Depreciation represents the wear and tear or consumption of fixed capital during the production process. It is a key measure in national income accounting.
38. What is the formula for GDP Deflater?
[A] Nominal GDP + Real GDP
[B] Nominal GDP – (minus) Real GDP
[C] Real GDP/ Nominal GDP
[D] Nominal GDP/ Real GDP
Show Answer
Correct Answer: D [Nominal GDP/ Real GDP]
Notes:
The GDP deflator measures price inflation in an economy.It measures the changes in prices for all of the goods and services produced in an economy. The GDP deflator is calculated by dividing nominal GDP by real GDP and multiplying by 100.
39. Who presents the economic survey every year?
[A] Ministry of Economic affairs
[B] Department of Economic affairs
[C] Department of Finance
[D] Department of Revenue
Show Answer
Correct Answer: B [Department of Economic affairs]
Notes:
The Economic Survey of India is the flagship annual document of the Finance Ministry. The Department of economic affairs, Ministry of Finance presents the Survey in the parliament every year, just before the Union Budget. It is prepared under the guidance of the Chief economic advisor of India. This document is presented to both Houses of Parliament during the Budget session.
40. What does free market in an economy imply?
[A] Minimum government intervention in trade and maximum regulations
[B] Maximum government intervention in trade and maximum regulations
[C] Minimum government intervention in trade and minimum regulations
[D] Maximum government intervention in trade and maximum regulations
Show Answer
Correct Answer: C [Minimum government intervention in trade and minimum regulations]
Notes:
In a free market economy, the law of supply and demand, rather than a central government, regulates production and labor. Companies sell goods and services at the highest price consumers are willing to pay while workers earn the highest wages companies are willing to pay for their services
