Q90. Which aggregate measures a country’s domestic output while including consumption of fixed capital?
[SSC MTS (1 September 2023, Shift 1)]
A. Net Domestic Product
B. Gross National Product
C. Net National Product
D. Gross Domestic Product
Answer: D. Gross Domestic Product
Explanation: Gross Domestic Product is a gross measure of newly produced final output within the domestic territory. Because it is gross, it has not deducted capital consumption or depreciation, whereas Net Domestic Product is GDP less depreciation.
Q89. Which aggregate includes cross-border primary-income adjustments but does not subtract depreciation?
[SSC MTS (12 September 2023, Shift 2)]
A. Gross National Product
B. Net National Product
C. Per-capita income
D. Gross Domestic Product
Answer: A. Gross National Product
Explanation: Gross National Product incorporates the net primary or factor income of residents from abroad, distinguishing it from purely domestic production. The gross qualifier means depreciation remains included; subtracting depreciation from GNP produces Net National Product.
Q88. What aggregate equals the annual value of final goods and services produced within national territory?
[SSC MTS (11 September 2023, Shift 2)]
A. Gross National Product
B. Net National Product
C. Gross Domestic Product
D. Net Domestic Product
Answer: C. Gross Domestic Product
Explanation: Domestic means production within the country’s economic territory, while gross means that depreciation has not yet been deducted. The value of final output is counted to avoid repeatedly including intermediate components embedded in finished goods.
Q87. Which method of measuring aggregate production adds expenditure on final goods and services?
[SSC MTS (8 September 2023, Shift 2)]
A. Value-added method
B. Output method
C. Expenditure method
D. Income method
Answer: C. Expenditure method
Explanation: The expenditure approach counts spending on final goods and services by households, firms and government, plus exports and minus imports. It should reconcile with estimates of production and factor incomes for the same accounting period.
Q86. Why distinguish final goods from intermediate goods when computing national income?
[SSC MTS (5 September 2023, Shift 3)]
A. To follow consumers’ preferences
B. To improve accurate measurement of aggregate output
C. To estimate household inequality
D. To rank merchandise quality
Answer: B. To improve accurate measurement of aggregate output
Explanation: Identifying inputs used up in production prevents them from being counted a second time when final goods are sold. That improves measured aggregate output and the reliability of comparisons over time, which the exam frames as more accurate growth measurement.
Q85. Why are intermediate goods not separately included alongside final goods in national-income calculation?
[SSC MTS (14 September 2023, Shift 2)]
A. It would count some production value twice
B. They always originate outside the country
C. They necessarily reduce national income
D. They never form part of economic production
Answer: A. It would count some production value twice
Explanation: Inputs such as flour are embodied in the value of products such as bread. Adding both total transaction values would overstate new production; national accountants instead sum value added or value final goods and services.
Q84. Which agency calculated national income in India under the traditional statistical organisation?
[WBCS Mains 2021 (held May 2022, Paper V)]
A. Finance Commission
B. Indian Statistical Institute
C. National Development Council
D. Central Statistical Office
Answer: D. Central Statistical Office
Explanation: The Central Statistical Office historically compiled India’s national income figures. Following the 2019 organisational merger, the National Statistical Office performs the function. The exam’s expected answer reflects the institution named in its options.
Q83. What is national income called after adjustment for the effect of inflation?
[WBCS Mains 2021 (held May 2022, Paper V)]
A. Per capita income
B. Disposable income
C. Inflation rate
D. Real national income
Answer: D. Real national income
Explanation: Real income expresses production or income using constant purchasing-power units. Correcting for price changes isolates the real movement in output, whereas nominal income can increase solely because prices rise.
Q82. Which measure best represents real national income among the given alternatives?
[RRB Group D (29 August 2022, Shift 1)]
A. GDP at factor price
B. GDP at average price
C. GDP at current price
D. GDP at constant price
Answer: D. GDP at constant price
Explanation: Constant-price valuation removes the effect of inflation and approximates real output growth. The exam’s simplified wording uses real GDP as a proxy, although national and domestic income are distinct accounting aggregates.
Q81. What alternate name is commonly used for the GDP deflator?
[SSC CGL (21 April 2022, Shift 3)]
A. Implicit inflation index
B. Explicit inflation index
C. Implicit price deflator
D. Explicit price deflator
Answer: C. Implicit price deflator
Explanation: The GDP deflator is an implicit price index calculated from nominal and real GDP. It is not based on a fixed household shopping basket and covers the goods and services actually produced domestically.
