SBI CBO General Economy FREE QUIZ, Get FREE PDF

Q1. A foreign automobile company manufactures cars in India and sells them domestically. The value of these cars will be included in:

Q2. An Indian IT company earns profit from its branch operating in the UK. This income will be included in:

Q3. If the income earned by foreigners in India exceeds the income earned by Indians abroad, then:

Q4. Which of the following correctly explains why GDP focuses on location?

Q5. If GNP = ₹8000 crore and depreciation = ₹500 crore, then NNP will be:

Q6. Which of the following indicators provides a more accurate measure of an economy’s productive capacity?

Q7. National Income in India is officially measured as:

Q8. Which of the following adjustments converts Market Price into Factor Cost?

Q9. If indirect taxes increase while subsidies remain constant, the gap between market price and factor cost will:

Q10. Which of the following transactions will NOT be included in GDP calculation?

Q11. GDP counts only final goods and services primarily to:

Q12. Which method of national income calculation sums up wages, rent, interest and profit?

Q13. The Production Method of national income estimation focuses on:

Q14. Which of the following best describes “Gross Value Added”?

Q15. Which of the following components is included in the Expenditure Method of GDP?

Q16. In the GDP expenditure formula, “I” represents:

Q17. Which component represents household spending on goods and services in GDP calculation?

Q18. If a country produces the same quantity of goods but prices rise significantly, which GDP will show growth?

Q19. Real GDP differs from Nominal GDP because it:

Q20. Which of the following is a limitation of Nominal GDP?

Q21. Real GDP is generally used to:

Q22. Which situation would cause Nominal GDP to increase without real economic growth?

Q23. If inflation is very high, Nominal GDP may:

Q24. Which concept measures the actual income earned by residents of a country?

Q25. Which of the following is considered a factor payment?

Q26. Which of the following will increase national income?

Q27. Which type of transactions are excluded from national income accounting?

Q28. The difference between GDP and GNP arises mainly due to:

Q29. If depreciation increases significantly, which indicator will decline?

Q30. Which of the following activities contributes to GDP but not to GNP of India?

Q31. Which economic indicator is most commonly used for international comparison of economies?

Q32. Which of the following is NOT a factor of production?

Q33. If the value of intermediate goods is included in GDP, it would lead to:

Q34. In the value added approach, GDP is calculated by:

Q35. Which component of GDP reflects spending by government on infrastructure and services?

Q36. If GDP of a country is ₹12,000 crore and net factor income from abroad is ₹400 crore, what will be the GNP?

Q37. If GNP = ₹9,500 crore and depreciation = ₹600 crore, then NNP will be:

Q38. If GDP at Market Price is ₹10,000 crore, indirect taxes are ₹1,200 crore and subsidies are ₹200 crore, GDP at Factor Cost will be:

Q39. GDP at Factor Cost = ₹8,000 crore. Indirect taxes = ₹700 crore and subsidies = ₹200 crore. GDP at Market Price will be:

Q40. If the value of output is ₹5,000 and intermediate consumption is ₹3,200, the Gross Value Added (GVA) will be:

Q41. Which of the following transactions will be included in GDP?

Q42. Which of the following will NOT affect GDP of a country?

Q43. If consumption = ₹5000, investment = ₹1500, government spending = ₹2000, exports = ₹1000 and imports = ₹800, GDP will be:

Q44. Which of the following best explains why Real GDP is preferred for growth analysis?

Q45. Which indicator reflects the income actually available to factors of production?

Q46. If Nominal GDP grows by 10% and inflation is 6%, Real GDP growth approximately will be:

Q47. Which of the following incomes is included in National Income?

Q48. Which of the following is treated as transfer payment?

Q49. Transfer payments are excluded from GDP because:

Q50. Which of the following is a limitation of GDP as a measure of welfare?

Q51. Which activity contributes to GDP but may reduce economic welfare?

Q52. Which sector generally contributes the largest share to India’s GDP?

Q53. Which of the following will increase GDP but not necessarily improve welfare?

Q54. Which of the following would increase GNP but not GDP of India?

Q55. If net factor income from abroad is negative, then:

Q56. Which method of calculating national income is also called the value added method?

Q57. Which of the following will NOT be included in national income?

Q58. Which of the following can lead to overestimation of GDP?

Q59. Which of the following best explains the concept of double counting?

Q60. Which economic indicator best reflects long-term sustainable economic growth?