Q80. Which item must be added to national income when arriving at personal income?
[SSC CGL (3 December 2022, Shift 2)]
A. Net interest payments
B. Transfers from governments and businesses
C. Undistributed company profits
D. Corporate income tax
Answer: B. Transfers from governments and businesses
Explanation: Transfer payments augment income received by households without representing payments for current production. Conversely, retained profits and corporate taxes typically must be deducted because they are not directly received by people.
Q79. Which aggregate is most widely used as the measure of an economy’s overall size?
[RRB Group D (30 August 2022, Shift 1)]
A. Net National Product
B. Net Domestic Product
C. Gross Domestic Product
D. Gross National Product
Answer: C. Gross Domestic Product
Explanation: GDP is the standard headline measure of total domestic economic production because it covers goods and services generated within the economic territory. National aggregates instead adjust for the net primary income of residents earned across borders.
Q78. Which budget statement assesses prospects for GDP growth, the central fiscal balance and the external balance?
[RRB Group D (26 September 2022, Shift 3)]
A. Medium-term Fiscal Policy Statement
B. Revenue Expenditure Statement
C. Macroeconomic Framework Statement
D. Fiscal Policy Strategy Statement
Answer: C. Macroeconomic Framework Statement
Explanation: The Macroeconomic Framework Statement evaluates broad economic conditions, including projected GDP growth, government fiscal balances and the external sector. It accompanies the Union Budget under the statutory fiscal reporting framework introduced through the FRBM legislation.
Q77. Income that remains after a person pays direct personal taxes is called what?
[RRB Group D (22 August 2022, Shift 3)]
A. Personal income
B. Disposable income
C. Per-capita income
D. National income
Answer: B. Disposable income
Explanation: Disposable personal income is the amount households can spend or save after paying personal direct taxes. Personal income is usually measured before those deductions, and national income is the aggregate earned from current production across an economy.
Q76. Which index is NOT one of the three dimensions used to compile the Human Development Index?
[ICAR Technician (2 March 2022, Shift 3)]
A. Gross National Income index
B. Net Domestic Product index
C. Education index
D. Life expectancy index
Answer: B. Net Domestic Product index
Explanation: The HDI combines health, education and a standard-of-living measure based on GNI per capita. Net Domestic Product is an accounting aggregate but not the separate income component used directly in the UNDP’s HDI formula.
Q75. What is NNP at market prices equal to?
[RPSC RAS/RTS Prelims (2021)]
A. GNP at market prices minus net factor income
B. GNP at market prices minus transfers
C. GNP at market prices minus depreciation
D. GNP at market prices minus subsidies
Answer: C. GNP at market prices minus depreciation
Explanation: Net national product subtracts consumption of fixed capital from gross national product. Depreciation captures the part of the capital stock used up during production, making the net measure smaller.
Q74. In national-income accounts, which year’s prices are meant by the base year?
[RPSC RAS/RTS Prelims (2021)]
A. Year used for nominal income
B. Year for nominal GDP pricing
C. Reference year used for real GDP prices
D. Year whose income measures real GDP
Answer: C. Reference year used for real GDP prices
Explanation: The base year supplies the price weights for constant-price output. This makes it possible to compare the volume of goods and services across periods without interpreting inflation as real growth.
Q73. Consider:
(1) capital formation depends on savings and efficient financial institutions;
(2) investment is essential to capital formation.
Which are correct?
[UPPSC Prelims (2021)]
A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither
Answer: C. Both 1 and 2
Explanation: Savings provide resources, while institutions mobilise and allocate them to investment projects. Investment creates capital assets that increase productive capacity; both the financing process and the investment decision are necessary.
Q72. What was the estimated Indian per-capita net national income for 2019–20 at current prices?
[SSC CHSL 2020 (6 August 2021, Shift 2)]
A. ₹1,15,050
B. ₹1,55,050
C. ₹1,35,050
D. ₹1,85,050
Answer: C. ₹1,35,050
Explanation: The figure referred to the national-accounts estimate available to candidates for FY2019–20. Per-capita net national income divides the aggregate by population and can change when national-accounting series are revised.
Q71. Which is NOT usually listed as a primary direct determinant of economic growth?
[UPPSC Civil Services Prelims (2021)]
A. Capital accumulation and technological change
B. Population or labour changes
C. Division of labour and specialisation
D. Number of technocrats and bureaucrats
Answer: D. Number of technocrats and bureaucrats
Explanation: Economic growth is commonly associated with capital accumulation, the quantity and quality of labour, productivity, technology and specialisation. The occupations named in the fourth option are not treated as a separate basic input category in this conventional framework.
