UPSC PRELIMS MCQS
Q. National Income is the (IAS/1997)
A. Net National Product at market price
B. Net National Product at factor cost
C. Net Domestic Product at market price
D. Net Domestic Product at factor cost
Correct Answer: (b) Net National Product at factor cost
Q. National product at factor cost is equal to
A. Domestic product + Net factor income from abroad
B. National product at market prices – Indirect taxes + Subsidies
C. Gross domestic product – Depreciation
D. National product at market prices + Indirect taxes + Subsidies
Correct Answer: (b) National product at market prices – Indirect taxes + Subsidies
Q. The term National Income represents (IAS/2001)
A. Gross National Product at market prices minus depreciation
B. Gross National Product at market prices minus depreciation plus net factor income from abroad
C. Gross National Product at market prices minus depreciation and indirect taxes plus subsidies
D. Gross National Product at market prices minus net factor income from abroad
Correct Answer: (c) Gross National Product at market prices minus depreciation and indirect taxes plus subsidies
Q. In an open economy, the national income (Y) of the economy is (IAS Exam)
A. Y = C + I + G + X
B. Y = C + I + G – X + M
C. Y = C + I + G + (X – M)
D. Y = C + I – G + X – M
Correct Answer: (c) Y = C + I + G + (X – M)
Q. The value of all final goods and services produced by the normal residents of a country and their property, whether operating within the domestic territory or outside in a year, is termed as (CDS-II/2014)
A. Net National Income
B. Gross National Income
C. Gross Domestic Product
D. Net Domestic Product
Correct Answer: (b) Gross National Income
Q. Gross Domestic Product (GDP) is called ‘gross’ because its computation does not exclude
A. Subsidies on consumption of goods
B. Earnings of foreign factors in host country
C. Impact of price rise
D. Depreciation of capital (consumption of capital in production process)
Correct Answer: (d)
Q. Which one of the following statements is not correct for National Income Accounting in India? (CDS-I/2024)
A. Imports are subtracted in calculating Gross Domestic Product.
B. Net factor payments earned from abroad are included in Gross Domestic Product.
C. Purchase and sale of second-hand goods are not included in Gross Domestic Product.
D. Inventories are included in Gross Domestic Capital Formation.
Correct Answer: (b)
Q. National product at factor cost is equal to (CDS-II/2014)
A. Domestic product + Net factor income from abroad
B. National product at market prices – Indirect taxes + Subsidies
C. Gross domestic product – Depreciation
D. National product at market prices + Indirect taxes + Subsidies
Correct Answer: (b)
