12th May Static Quiz 2021
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12th May Static Quiz 2021 for UPSC Prelims
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- Question 1 of 5
1. Question
The national income estimates of GDP are released quarterly by the
CorrectSolution: c)
Justification: The Central Statistics Office coordinates the statistical activities in the country and evolves statistical
standards. It is headed by a Director General assisted by 5 Additional Director Generals.
CSO has five Divisions of which the NAD (National Accounts Division) is responsible for the preparation of national
accounts, which includes Gross Domestic Product, Government and Private Final Consumption Expenditure, Fixed
Capital Formation and other macro-economic aggregates.IncorrectSolution: c)
Justification: The Central Statistics Office coordinates the statistical activities in the country and evolves statistical
standards. It is headed by a Director General assisted by 5 Additional Director Generals.
CSO has five Divisions of which the NAD (National Accounts Division) is responsible for the preparation of national
accounts, which includes Gross Domestic Product, Government and Private Final Consumption Expenditure, Fixed
Capital Formation and other macro-economic aggregates. - Question 2 of 5
2. Question
Why is Gross National Product (GNP) a better measure of national income than Gross Domestic Product (GDP)?
1. GNP reflects an economy’s interconnection and interdependence on world economy, which is not captured by GDP.
2. GNP includes the idea of depreciation of national capital that is not accounted by GDP.
3. GNP accounts for the population headcount in the nation that GDP does not include.Select the correct answer using the codes below.
CorrectThe normal formula is GNP = GDP Income from Abroad. But it becomes GNP = GDP (—Income from
Abroad) = GDP — Income from Abroad, in the case of India.
IFA usually includes remittances, trade balance and interest on external loans.
This is because usually the IFA component of India is negative. So, India’s GNP is generally lower than its GDP.
The different uses of the concept GNP are as given below:
1. This is the ‘national income’ according to which the IMF ranks the nations of the world in terms of the volumes—at Purchasing Power Parity (at PPP).
2. It is the more exhaustive concept of national income than the GDP as it indicates towards the ‘quantitative ‘as well as the ‘qualitative ‘aspects of the economy, i.e., the ‘internal’ as well as the ‘external’ strength of the economy.
3. It enables us to learn several facts about the production behaviour and pattern of an economy, such as, how much the outside world is dependent on its product and how much it depends on the world for the same (numerically shown by the size and net flow of its ‘balance of trade’) etc.IncorrectThe normal formula is GNP = GDP Income from Abroad. But it becomes GNP = GDP (—Income from
Abroad) = GDP — Income from Abroad, in the case of India.
IFA usually includes remittances, trade balance and interest on external loans.
This is because usually the IFA component of India is negative. So, India’s GNP is generally lower than its GDP.
The different uses of the concept GNP are as given below:
1. This is the ‘national income’ according to which the IMF ranks the nations of the world in terms of the volumes—at Purchasing Power Parity (at PPP).
2. It is the more exhaustive concept of national income than the GDP as it indicates towards the ‘quantitative ‘as well as the ‘qualitative ‘aspects of the economy, i.e., the ‘internal’ as well as the ‘external’ strength of the economy.
3. It enables us to learn several facts about the production behaviour and pattern of an economy, such as, how much the outside world is dependent on its product and how much it depends on the world for the same (numerically shown by the size and net flow of its ‘balance of trade’) etc. - Question 3 of 5
3. Question
If the Gross Domestic Product (GDP) of a country is growing, it implies that
1. The nation must be experiencing an expansion of the share of manufacturing vis-à-vis other sectors in the GDP.
2. The nation must be experiencing a general rise in the prices of goods and services on an annual basis.Which of the above is/are correct?
CorrectJustification: GDP calculates total value of goods and services produced within a year at market prices. It considers production by all three sectors – primary, secondary and tertiary.
Statement 1: Manufacturing activity is considered a part of the secondary sector. Even if the GDP is expanding, it does not mean that manufacturing must expand. The increase can come from services or agricultural sectors as well.
Statement 2: If the demand is not growing more than the production of goods and services (owing to an increased GDP), inflation will be under control.IncorrectJustification: GDP calculates total value of goods and services produced within a year at market prices. It considers production by all three sectors – primary, secondary and tertiary.
Statement 1: Manufacturing activity is considered a part of the secondary sector. Even if the GDP is expanding, it does not mean that manufacturing must expand. The increase can come from services or agricultural sectors as well.
Statement 2: If the demand is not growing more than the production of goods and services (owing to an increased GDP), inflation will be under control. - Question 4 of 5
4. Question
Consider the following statements. If we take into account the economic growth data of last few years
1. India has consistently grown faster than US and all other OECD developed economies in Europe.
2. India’s average growth rate has been higher than that of ChinaWhich of the above is/are correct?
CorrectSolution: C
IncorrectSolution: C
- Question 5 of 5
5. Question
As per the presently followed system, Gross National Income (GDP) at Constant and Current Prices in India will be equal in which of the following financial years?
CorrectSolution: d)
Justification: Constant prices are calculated at 2011-12 prices as per the latest series, and Current prices can only be equal to constant prices in the year series which it starts from, i.e. 2011-12IncorrectSolution: d)
Justification: Constant prices are calculated at 2011-12 prices as per the latest series, and Current prices can only be equal to constant prices in the year series which it starts from, i.e. 2011-12
