GDP & National Income — Set 14
Economy Advanced · GDP और राष्ट्रीय आय · Questions 131–140 of 140
Which annual publication of the Government of India provides detailed analysis of the economy including GDP trends?
Correct Answer: B. B. Economic Survey
The Economic Survey, published annually by the Ministry of Finance just before the Union Budget, provides comprehensive analysis of India's economic performance including GDP growth, sectoral trends, inflation, fiscal position, and policy recommendations. It is authored by the Chief Economic Adviser (CEA) and is the most authoritative annual document on India's economy.
India's GDP growth is most correlated with which sector's performance?
Correct Answer: B. B. Services and Manufacturing combined
India's overall GDP growth is most correlated with the combined performance of Services and Manufacturing. Services constitute 55-57% of GVA and are the single largest driver. Manufacturing at 17-20% adds significant cyclical momentum. Agriculture, despite 15-18% GVA share, has more seasonal and monsoon-dependent variability.
The 'Purchasing Power Parity' theory was originally proposed by:
Correct Answer: B. B. Gustav Cassel
The Purchasing Power Parity (PPP) theory was originally proposed by Swedish economist Gustav Cassel in 1918. PPP states that exchange rates between currencies should equal the ratio of price levels between countries. In its absolute form, PPP implies that the same basket of goods should cost the same in different countries when measured in a common currency.
India's GDP growth slowed significantly after 2016-17 primarily due to:
Correct Answer: B. B. Demonetisation impact and GST implementation disruption
India's GDP growth slowed from approximately 8% in 2016-17 to 6.1% in 2017-18 and further in subsequent years, primarily due to disruptions from Demonetisation (November 2016) and implementation challenges of GST (July 2017). These twin shocks particularly impacted the informal sector, consumer spending, and business investment.
GDP per capita as a welfare measure has which key limitation?
Correct Answer: B. B. Does not capture income distribution inequality
The key limitation of GDP per capita as a welfare measure is that it does not capture income distribution or inequality within the country. A country may have high per capita GDP with extreme inequality where most income accrues to a few. The Gini coefficient, HDI, and multidimensional poverty indices complement GDP per capita for better welfare assessment.
'Gross Value Added at Basic Prices' equals:
Correct Answer: B. B. Output minus intermediate consumption at basic prices
GVA at Basic Prices = Output value at basic prices minus Intermediate Consumption (inputs used in production). Basic prices are producer prices excluding product taxes but including production taxes and subsidies. GVA at basic prices summed across all sectors gives economy-wide GVA, from which GDP at market prices is derived.
What is the 'nominal per capita income' versus 'real per capita income' distinction?
Correct Answer: B. B. Nominal is at current prices; real adjusts for inflation (at constant prices)
Nominal per capita income is calculated using current year prices (National Income at current prices / Population), while real per capita income adjusts for inflation (National Income at constant prices / Population). Real per capita income growth shows actual improvement in living standards, while nominal growth is inflated by price increases.
India's nominal GDP is measured in:
Correct Answer: B. B. Current market prices
India's nominal GDP is measured at current market prices, reflecting the actual prices prevailing during the measurement year. Nominal GDP includes the effect of both price changes and real output changes. Real GDP, measured at constant 2011-12 prices, removes inflation to show only volume changes. Both nominal and real GDP figures are published by NSO.
Which statement about India's economic growth in the 2000s (2000-2010) is correct?
Correct Answer: B. B. India achieved 8-9% growth during 2004-08 making it one of the world's fastest-growing economies
During 2004-08, India achieved real GDP growth of 8-9% per annum, making it one of the world's fastest-growing major economies alongside China. This growth was driven by IT/services, strong capital inflows, robust consumption, and rising investment. The global financial crisis of 2008-09 moderated this growth, but India recovered relatively quickly.
The target for India's economy set by the Economic Survey and government documents to become a developed economy by 2047 is called:
Correct Answer: C. C. Viksit Bharat 2047
Viksit Bharat 2047 (Developed India 2047) is the government's long-term vision for India to become a fully developed nation by 2047, the centenary of independence. It aims for high per capita income, excellent human development, and strong institutional quality. Achieving this requires sustained high GDP growth, improved human capital, and technological advancement over the next 25 years.