Q60. In factor-income terms, national income means which of these?
[AP Police Constable Prelims 2018 (exam held 6 January 2019)]
A. Income of government
B. Government budget
C. Sum of factor incomes
D. Profits of public-sector enterprises only
Answer: C. Sum of factor incomes
Explanation: National income covers factor rewards from production, including wages for labour, rent for land, interest for capital and entrepreneurial surplus. It is far broader than public-sector profits or government receipts and excludes nonproductive transfers.
Q59. Which of these aggregates is traditionally called national income?
[Chhattisgarh Vyapam Patwari (2019)]
A. Gross Domestic Product
B. Net Domestic Product
C. Net National Income
D. Gross National Income
Answer: C. Net National Income
Explanation: Net national income is the national aggregate after allowing for depreciation of fixed capital. In the conventional examination vocabulary, the closely corresponding National Income concept is Net National Product at factor cost.
Q58. Which national-income assertions are correct:
A. capital gains count;
B. illegal-activity income is not included in this exam’s estimates;
C. imputed rent of owner-occupied houses is included?
[RPSC Senior Teacher Grade II Social Science (3 July 2019)]
A. A and B
B. B and C
C. A and C
D. A, B and C
Answer: B. B and C
Explanation: The exam’s conventional treatment excludes capital gains, because changes in asset values do not represent new production, while including imputed housing services of owner-occupiers. Modern statistical standards may conceptually include some illegal production, making the original textbook convention important.
Q57. Who is credited with the earliest attempt to estimate India’s national income?
[West Bengal Police Constable (2019)]
A. V. K. R. V. Rao
B. Vallabhbhai Patel
C. Dadabhai Naoroji
D. P. C. Mahalanobis
Answer: C. Dadabhai Naoroji
Explanation: Dadabhai Naoroji made a pioneering estimate of India’s income under colonial rule and developed arguments surrounding the drain of wealth. Later statisticians refined the methods for national income accounting and produced more systematic estimates.
Q56. Which measure values final goods and services attributable to a country’s residents, including their net earnings abroad?
[DSSSB Lower Division Clerk (25 August 2019, Shift 1)]
A. Net Domestic Product
B. Gross Domestic Product
C. Gross National Product
D. Net National Product
Answer: C. Gross National Product
Explanation: Gross National Product relates domestic production to the income accruing to resident factors by including net factor income from abroad. Unlike Net National Product, this gross measure does not deduct depreciation from the capital stock.
Q55. In the standard exam definition, national income measures which total for a year?
[SSC CHSL (28 March 2018, Shift 1)]
A. Money value of goods and services produced
B. Money value of shares
C. Only output of capital goods
D. Only output of consumer goods
Answer: A. Money value of goods and services produced
Explanation: The objective is to measure the economy’s production and the resulting incomes earned during one accounting year. The simplified answer contrasts this broad aggregate with narrow totals such as financial securities or particular classes of goods.
Q54. According to the World Bank figure used by the exam, India’s GDP at end-2017 was approximately how much?
[RRB Group D (27 September 2018, Shift 2)]
A. US$3.197 trillion
B. US$2.597 trillion
C. US$4.234 trillion
D. US$1.009 trillion
Answer: B. US$2.597 trillion
Explanation: The answer reflects the quoted World Bank historical nominal GDP estimate in United States dollars. Comparisons across years or sources can differ because of exchange-rate effects and later statistical revisions.
Q53. Why might high savings and investment not translate into proportionately higher output?
[UPSC CSE Prelims (2018)]
A. Administrative machinery alone
B. Illiteracy alone
C. Population density alone
D. High capital-output ratio
Answer: D. High capital-output ratio
Explanation: A high capital-output ratio means substantial new investment is needed for each unit of additional production. It can therefore reduce the growth realised from a given savings and investment rate.
Q52. What is the meaning of national income in factor-income terms?
[SSC MTS (4 October 2017, Shift 3)]
A. Wages alone
B. Rent alone
C. Sum of all factor incomes
D. None of these
Answer: C. Sum of all factor incomes
Explanation: National income at factor cost combines payments for labour, land, capital and entrepreneurship, usually described as wages, rent, interest and profits. It is not represented by any one factor payment in isolation.
Q51. Which indicator is commonly employed for comparing average economic development per person?
[SSC MTS (10 October 2017, Shift 1)]
A. Per-capita monetary income
B. Total national income
C. Rural income alone
D. Population
Answer: A. Per-capita monetary income
Explanation: Average income divides income by the relevant population, facilitating comparisons across territories of different sizes. It is informative but cannot reveal inequality within the population or measure all aspects of human development.
