SSC CGL Economy – National Income – Level 2 · Exam Level · Tier I Sprint

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SSC CGL Economy – National Income – Level 2 · Exam Level · Tier I Sprint – 15 questions, subject: Indian Economy. Every question has the correct answer with a one-line explanation; tap "Show Answer". Free practice for TNPSC, UPSC, SSC, Bank and RRB exams – Shanmugam IAS Academy, Coimbatore.

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1.  
GDPmp = ₹ 2,400 crore, depreciation = ₹ 200 crore, NFIA = −₹ 50 crore, net indirect taxes = ₹ 150 crore. National income is:

Correct Answer: B [₹ 2,000]

Explanation:

2,400 − 200 − 50 − 150 = 2,000 (NFIA is negative).

2.  
A farmer sells cotton for ₹ 400 to a mill; the mill sells cloth for ₹ 900 to a tailor; the tailor sells shirts for ₹ 1,500 to customers. The contribution to GDP is:

Correct Answer: D [₹ 1,500]

Explanation:

Value added 400 + 500 + 600 = 1,500 = value of the final good.

3.  
C = 900, I = 250, G = 200, X = 150, M = 200 (₹ crore). GDP at market price is:

Correct Answer: C [₹ 1,300]

Explanation:

900 + 250 + 200 + (150 − 200) = 1,300.

4.  
Match the followingMatch the aggregate with its adjustment from GDPmp:
P. NDPmp Q. GNPmp R. GDPfc S. NNPfc
1. + NFIA 2. − Dep + NFIA − NIT 3. − Dep 4. − NIT

Correct Answer: A [P-3, Q-1, R-4, S-2]

Explanation:

NDP: −Dep; GNP: +NFIA; GDPfc: −NIT; NNPfc: all three.

5.  
Real GDP grows by 7% and the GDP deflator rises by 4% in the same year. Nominal GDP grows by about:

Correct Answer: D [11.3%]

Explanation:

Nominal = real × prices: 1.07 × 1.04 = 1.1128 → about 11.3% (the Growth Minus Rule read backwards: 7 + 4 ≈ 11).

6.  
Assertion–Reason
A: When NFIA is negative, GNP is less than GDP.
R: GNP = GDP + NFIA.

Correct Answer: C [Both A and R are true and R explains A]

Explanation:

Adding a negative NFIA reduces GDP to a smaller GNP.

7.  
Which one of these is included in India's GDP?

Correct Answer: A [Profit of a Japanese car company's factory in Chennai]

Explanation:

GDP is 'where': production within India's domestic territory counts, whoever owns it.

8.  
True/False countHow many of the following are excluded from national income?
scholarship, imputed rent of own house, capital gain on shares, homemaker's services, interest paid by a firm

Correct Answer: B [Three]

Explanation:

Excluded: scholarship, capital gain, homemaker's services; included: imputed rent, firm's interest payment.

9.  
Compensation of employees 520, operating surplus 310, mixed income 140, depreciation 60, net indirect taxes 90 (₹ crore). GDP at market price is:

Correct Answer: D [₹ 1,120]

Explanation:

NDPfc = 520 + 310 + 140 = 970; + 60 + 90 = 1,120.

10.  
Two-quantity comparisonTwo-quantity comparison (₹ crore): GDPmp = 1,000; depreciation = 60; NIT = 40; NFIA = 0.
Quantity I: NDP at market price
Quantity II: GDP at factor cost

Correct Answer: B [Quantity I < Quantity II]

Explanation:

QI = 1,000 − 60 = 940; QII = 1,000 − 40 = 960 → QI < QII.

11.  
One-line recallThe National Income Committee set up in 1949 was chaired by:

Correct Answer: A [P.C. Mahalanobis]

Explanation:

P.C. Mahalanobis chaired the 1949 committee; V.K.R.V.

12.  
Trick SpotterWheat ₹ 50 → flour ₹ 90 → biscuits ₹ 150 sold to families. Fastest correct way to find GDP?

Correct Answer: C [Take the value of the final good: ₹ 150]

Explanation:

Final-Good Jump: value added sums to the final sale, ₹ 150.

13.  
Spot My Mistake"GDPfc = 750 and subsidies exceed indirect taxes by 35, so GDPmp = 750 + 35 = 785." The correct GDPmp is:

Correct Answer: B [715]

Explanation:

NIT = −35 (subsidies exceed taxes); MP = FC + NIT = 750 + (−35) = 715, not 785.

14.  
Reverse questionAn item is excluded from national income because no productive service is given in return, though money changes hands. It is a:

Correct Answer: C [transfer payment]

Explanation:

Pensions, scholarships, gifts = transfer payments.

15.  
GVA at basic prices = ₹ 950 crore, product taxes = ₹ 120 crore, product subsidies = ₹ 70 crore. GDP is:

Correct Answer: D [₹ 1,000]

Explanation:

GDP = GVA at basic prices + product taxes − product subsidies = 950 + 120 − 70 = 1,000.

➤ Full notes, shortcuts and every answer explained – SSC CGL 2026 Indian Economy book (₹149): www.shanmugamiasacademy.in/study-materials/ssc-cgl-indian-economy

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