Q50. GDP represents the value of what during a given period?
[RRB NTPC CBT II (19 January 2017, Shift 2)]
A. All goods traded, whether intermediate or final
B. Final goods and services produced within a country
C. Intermediate goods alone
D. Both intermediate and final output added separately
Answer: B. Final goods and services produced within a country
Explanation: The final-goods criterion removes repeated valuation as intermediate goods pass through production chains. Geographical location determines domestic output, irrespective of the nationality of firms producing the goods.
Q49. Which state had the lowest per-capita income at current prices among these choices at the time?
[BPSC 63rd Prelims (2017)]
A. Bihar
B. Uttar Pradesh
C. Odisha
D. Nagaland
Answer: A. Bihar
Explanation: Bihar was the lowest among the listed states in the historical per-capita-income comparison. State comparisons must specify the accounting year and whether current or constant prices are used, as rebasing and revised state estimates can alter rankings.
Q48. Which was NOT a target of the Twelfth Five-Year Plan?
[UPSC NDA I (23 April 2017)]
A. Real GDP growth of 8%
B. Agricultural growth of 5%
C. Manufacturing growth of 10%
D. Annual addition of one million hectares of green cover
Answer: B. Agricultural growth of 5%
Explanation: The Twelfth Plan envisaged around eight percent annual GDP growth and roughly four percent agricultural growth, not five percent. The distinction between stated plan targets and actual achievements is important when interpreting historical planning questions.
Q47. Approximately how much did India’s national income rise over the First Five-Year Plan?
[WBCS Prelims (2016)]
A. 5%
B. 10%
C. 18%
D. None
Answer: C. 18%
Explanation: Over the First Plan period, national income increased by roughly 18 percent according to the answer key. This is a cumulative change over several years and should not be confused with the average annual GDP growth rate.
Q46. What was the industrial sector’s approximate contribution to Indian GDP in 1950–51?
[SSC CGL (10 September 2016)]
A. 11.8%
B. 15.2%
C. 6.2%
D. 22.4%
Answer: A. 11.8%
Explanation: Industry contributed a comparatively modest proportion of India’s early post-independence output. Agriculture still dominated employment and production, so subsequent development plans sought to raise industrial capacity and diversify the economy.
Q45. Which sector made the largest contribution to India’s national income?
[SSC CGL (10 September 2016)]
A. Industry
B. Services
C. Agriculture
D. Mining
Answer: B. Services
Explanation: Services became India’s largest contributor to total output. The category includes trade, transport, financial and professional services, communication, government services and other tertiary activities.
Q44. What is examined through the sectoral distribution of GDP?
[SSC CGL (6 September 2016)]
A. Agricultural growth alone
B. Economic development and structural composition
C. Social development alone
D. Only human-development measures
Answer: B. Economic development and structural composition
Explanation: Changes in the shares of agriculture, industry and services reveal structural transformation in the economy. They complement growth rates by showing which kinds of economic activity account for national production.
Q43. Which office historically compiled India’s national income?
[SSC CGL (4 September 2016)]
A. Finance Commission
B. Indian Statistical Institute
C. National Development Council
D. Central Statistical Organisation
Answer: D. Central Statistical Organisation
Explanation: The Central Statistical Organisation carried out the national-accounts compilation function before statistical restructuring. The National Statistical Office later assumed the role; the exam asks for the historically named institution.
Q42. Depreciation means a reduction in the value of what?
[SSC CGL (2 September 2016)]
A. Final consumer goods
B. An individual machine only
C. Capital stock
D. Inventories alone
Answer: C. Capital stock
Explanation: Depreciation is the loss in value of fixed capital assets through wear, ageing and obsolescence. It is deducted from gross output or investment to obtain the corresponding net measure.
Q41. Which of these is not a recognised method for national income estimation?
[SSC CGL (3 September 2016)]
A. Expenditure
B. Output
C. Matrix
D. Income
Answer: C. Matrix
Explanation: The output or value-added, income and expenditure approaches are the three established methods. Matrix methods can assist analytical accounting, but are not listed as a separate GDP computation method in this question.
