Q20. How are GNP and NNP related?
[Uttarakhand PSC Prelims (2010)]
A. Both measure national production value
B. Only factor-cost production
C. Only exports
D. They are always numerically identical
Answer: A. Both measure national production value
Explanation: GNP and NNP both measure aspects of national output, but NNP deducts depreciation from GNP. They are closely related concepts rather than two completely unrelated measures or exactly equal totals.
Q19. For the Indian economy at that examination date, assess:
(1) GDP increased fourfold in the previous decade;
(2) the public sector’s percentage share in GDP declined.
[UPSC CSE Prelims (2010)]
A. Only statement 1
B. Only statement 2
C. Both 1 and 2
D. Neither 1 nor 2
Answer: B. Only statement 2
Explanation: The official historical comparison treated the assertion of a fourfold GDP rise over ten years as incorrect, while accepting the decrease in the public sector’s GDP share. Dates and whether current or constant-price GDP is compared matter to this question.
Q18. Which match was correct in the following list:
(1) economic meltdown—fall in stock prices,
(2) recession—fall in growth rate,
(3) slowdown—fall in GDP?
[UPSC CSE Prelims (2010)]
A. Only 1
B. Only 2 and 3
C. Only 1 and 3
D. All 1, 2 and 3
Answer: A. Only 1
Explanation: The examination accepted the first pairing as its closest description. A slowdown generally means growth decelerates, whereas a contraction means real output actually falls. The distinction makes the latter two pairings misleading under the question’s terminology.
Q17. Match development, growth, sustainability and quality of life respectively with their principal ideas.
[UPPSC UDA/LDA Special Mains (2010)]
A. GDP; environment; health; constructive change
B. Constructive change; environment; health; GDP
C. Health; constructive change; GDP; environment
D. Constructive change; GDP; environment; health
Answer: D. Constructive change; GDP; environment; health
Explanation: Economic development involves broader structural improvements, whereas growth is often tracked through GDP. Sustainable development explicitly considers the environment, while quality of life also depends on health and other non-income conditions.
Q16. Which reference year for constant-price GDP appeared in the older series questioned by the examiner?
[UPPSC Prelims (2009)]
A. 1999–2000
B. 2000–01
C. 2002–03
D. 2006–07
Answer: A. 1999–2000
Explanation: The question concerns an older national-accounts series and uses 1999–2000 as the reference year. India’s statistical base-year practices have changed repeatedly, so the exam-year context is essential.
Q15. The domestic savings ratio for India in 2006–07 was in which range?
[UPPSC Prelims (2008)]
A. 20–25% of GDP
B. 25–30%
C. 30–32%
D. Above 32%
Answer: D. Above 32%
Explanation: Gross domestic saving stood above 32 percent of GDP in the cited period. The savings rate is the share of domestic income available for investment or lending rather than current consumption.
Q14. Which of these years showed the highest Indian GDP growth among the listed fiscal years?
[UPPSC Prelims (2008)]
A. 2003–04
B. 2004–05
C. 2005–06
D. 2006–07
Answer: D. 2006–07
Explanation: Under the national-accounts series specified by the question, 2006–07 registered the highest growth of the offered years. Growth rankings sometimes change after revisions to sector data and GDP methodology.
Q13. Why might labour’s share in Gross National Product decline when prices and earnings change differently?
[UPPSC Mains (2008)]
A. Prices rise more slowly than wages
B. Profits rise more slowly than prices
C. Prices rise more slowly than profits
D. Wages rise more slowly than prices
Answer: D. Wages rise more slowly than prices
Explanation: When wages lag behind the prices charged for output, nominal wage payments may form a smaller share of the value generated. In actual national accounts, distribution also depends on productivity, bargaining, employment composition and changes in operating surplus.
Q12. Which state had the lowest per-capita annual income among Bihar, Madhya Pradesh, Odisha and Uttar Pradesh in the historical comparison?
[UPPSC Civil Services Prelims (2008)]
A. Bihar
B. Madhya Pradesh
C. Odisha
D. Uttar Pradesh
Answer: A. Bihar
Explanation: Bihar was the lowest among the listed states in the series used for the question. Historical per-capita income rankings must not be treated as permanent, because population, state production and national-accounts revisions can change relative positions.
Q11. Who is commonly credited with the first estimate of India’s national income?
[UPPSC Prelims (2007)]
A. M. G. Ranade
B. W. Hunter
C. R. C. Dutt
D. Dadabhai Naoroji
Answer: D. Dadabhai Naoroji
Explanation: Dadabhai Naoroji published a pioneering estimate of Indian income under colonial rule. The later comprehensive scientific calculations by V. K. R. V. Rao and post-independence official national accounts were separate developments.
