UPSC Indian Economy – Chapter 2: National Income Accounting (23 MCQs)
UPSC Indian Economy – Chapter 2: National Income Accounting (23 MCQs) – 23 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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National income in India refers to:
Correct Answer: A [Net national product at factor cost]
Explanation:
NNP at factor cost.
GNP exceeds GDP when:
Correct Answer: B [net factor income from abroad is positive]
Explanation:
GNP = GDP + NFIA.
GVA at basic prices differs from GVA at factor cost by:
Correct Answer: A [production taxes less production subsidies]
Explanation:
land revenue, stamp duty and similar taxes.
Consider the following:
1. Imputed rent of owner-occupied houses
2. Old-age pension paid by the government
3. Commission earned by a dealer on the sale of a used car
Which of the above are included in GDP?
Correct Answer: D [1 and 3 only]
Explanation:
imputed rent and the dealer's service are output.
Using the data GVA at basic prices Rs 1,000 crore, product taxes Rs 120 crore and product subsidies Rs 20 crore, GDP at market prices is:
Correct Answer: D [Rs 1,100 crore]
Explanation:
1,000 + 120 − 20.
The problem of double counting is avoided in the production method by:
Correct Answer: C [counting value added at each stage]
Explanation:
output minus intermediate consumption.
If imports exceed exports, then in the expenditure method:
Correct Answer: C [net exports reduce GDP]
Explanation:
X − M is negative.
The GDP deflator is calculated as:
Correct Answer: B [(nominal GDP ÷ real GDP) × 100]
Explanation:
the implicit price index.
Consider the following statements about the GDP deflator:
1. It covers all goods and services produced in the economy.
2. It includes the prices of imported goods.
3. Its weights change with the composition of output.
Which of the statements given above are correct?
Correct Answer: C [1 and 3 only]
Explanation:
all domestic output; changing weights.
The new series of India's GDP released on 27 February 2026 has the base year:
Correct Answer: D [2022-23]
Explanation:
2022-23.
Which of the following is a new administrative data source used in the 2022-23 GDP series?
Correct Answer: C [e-VAHAN vehicle registration data]
Explanation:
along with GST, MCA and PFMS data.
"Double deflation" in national accounts means:
Correct Answer: B [deflating output and intermediate inputs separately with their own price indices]
Explanation:
gives a better real value added.
The National Statistical Office was formed in 2019 by merging:
Correct Answer: C [the Central Statistics Office and the National Sample Survey Office]
Explanation:
both under MoSPI.
The National Income Committee of 1949 was chaired by:
Correct Answer: D [P.C. Mahalanobis]
Explanation:
chairman.
According to the Provisional Estimates released on 5 June 2026, India's real GDP growth in 2025-26 was:
Correct Answer: A [7.7 per cent]
Explanation:
real growth at 2022-23 prices.
Assertion (A): India's GNP is smaller than its GDP.
Reason (R): Factor income paid to non-residents exceeds factor income received by Indian residents from abroad.
Correct Answer: B [Both A and R are true, and R is the correct explanation of A]
Explanation:
negative NFIA.
Which of the following is a limitation of GDP as a welfare measure?
Correct Answer: C [It ignores the depletion of natural resources]
Explanation:
the reason for green accounting.
With an investment rate of 32 per cent of GDP and an incremental capital-output ratio of 4, the approximate growth rate is:
Correct Answer: A [8 per cent]
Explanation:
32 ÷ 4.
Arrange the following in chronological order:
1. National Income Committee chaired by P.C. Mahalanobis
2. Dadabhai Naoroji's estimate of per capita income
3. Merger of CSO and NSSO into the NSO
4. Release of the GDP series with base year 2022-23
Correct Answer: D [2–1–3–4]
Explanation:
1867-68 estimate, 1949, 2019, 2026.
The World Bank's International Comparison Program for 2021 placed India's economy, in purchasing power parity terms, at:
Correct Answer: B [third]
Explanation:
after China and the United States.
Economic growth in country X will necessarily have to occur if
Correct Answer: C [there is capital formation in X]
Explanation:
capital formation adds directly to productive capacity.
With reference to Indian economy, consider the following statements:
1. The rate of growth of real Gross Domestic Product has steadily increased in the last decade.
2. The Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade.
Which of the statements given above is/are correct?
Correct Answer: B [2 only]
Explanation:
the level of nominal GDP kept rising; its growth rate did not rise every year.
Despite being a high saving economy, capital formation may not result in significant increase in output due to
Correct Answer: D [high capital-output ratio]
Explanation:
a high ICOR means more capital for each unit of output (Section 2.7).
➤ Full notes, maps, tables, a reason for every option and Mains PYQs – U15 · Indian Economy (UPSC book, ₹249): www.shanmugamiasacademy.in/study-materials/upsc-indian-economy
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