GK Quiz on Gross Domestic Product (GDP) of India

Many questions related to India's economy and GDP are asked in almost every competitive exam. Take the GK Quiz below to answer 15 important questions based on India's Gross Domestic Product (GDP).
Created On: Jul 23, 2021 18:27 IST
Modified On: Aug 3, 2021 12:03 IST
GK Questions and Answers on Gross Domestic Product(GDP) of India
GK Questions and Answers on Gross Domestic Product(GDP) of India

Take the GK Quiz based on Gross Domestic Product and choose to answer the questions carefully. The quiz will be helpful for all the candidates appearing for various competitive exams. 

1. Which of the following institutions releases the “World Economic Outlook Report”?

(a) World Bank

(b) Federal Reserve Bank

(c) International Monetary Fund

(d) International Finance Corporation

Ans. c

Explanation: The International Monetary Fund releases the World Economic Outlook Report. 

2. Which committee recommended the merger of Regional Rural Banks with their respective Sponsor Banks?

(a) Khusro Committee

(b) Narasimham Committee

(c) Dutt Committee

(d) C Rangarajan Committee

Ans. a

Explanation: The Agricultural Credit Review Committee, Khusro Committee, 1989 recommended the merger of Regional Rural Banks with their respective Sponsor Banks. It highlighted the weakness of RRBs and their non-viability.

3. Which of the following institutions releases the “World Economic Outlook Report”?

(a) World Bank

(b) Federal Reserve Bank

(c) International Monetary Fund

(d) International Finance Corporation

Ans. c

Explanation: The International Monetary Fund releases the World Economic Outlook Report. 

4. Which among the following is not a factor of production?

(a) Land

(b) Labour

(c) Capital

(d) Wages

Ans.d

Explanation: Wages are not included in the factors of production. 

5. Which of the following is not a method to calculate the Gross Domestic Product (GDP)?

(a) Product method

(b) Income law

(c) Expenditure method

(d) Diminishing cost method

Ans: d

Explanation: There are 3 methods used for calculating national income namely; Income method, expenditure method, and Product method. The diminishing cost method is not a method to calculate national income.

6. The total amount of income from economic activities across the country in a year is called ........

(a) Disposable income

(b) National income

(c) Personal income

(d) Private Income

Ans: b

Explanation: The total amount of income from economic activities across the country in a year is called national income. This income includes wages, interest, rent, and profit. 

7. Which of the following statements is correct?

(a) GDP at factor cost = Net Value Addition + Depreciation 

(b) GDP at factor cost = Net Value Addition - Depreciation

(c) GDP at factor cost = Net price increase + indirect tax 

(d) GDP at factor cost = Net price increase + direct tax 

Ans: a

Explanation: GDP at factor cost = Net Value Addition + Depreciation is correct. GDP at at factor cost is the sum of net value addition by all producers within the country.

8. Which statement is correct for nominal GDP?

  1. Nominal GDP is calculated based on current prices.
  2. Nominal GDP is calculated based on the base prices.
  3. Data on Nominal GDP shows an accurate picture of the economy as compared to real GDP.

(a) Only ii, iii

(b) only ii

(c) only i

(d) i, iii

Ans: c

Explanation: Nominal GDP is calculated on the basis of current prices. While real GDP is calculated on the base year prices and its data are more reliable or accurate as compared to Nominal GDP.

What is the difference between Real GDP and Nominal GDP?

9. What is the size of India's economy at present on a nominal GDP basis?

(a) US$ 2.93 trillion

(b) US$ 11.30 trillion

(c) US$ 3.5 trillion

(d) None of the above

Ans: a

Explanation: India's economy is currently 2.93 trillion dollars on a nominal GDP basis. This figure is from the IMF 2019 report. Currently, India is the 5th largest economy in the world.

10. Which sector contributes the most income to India's economy?

(a) Primary sector

(b) Secondary sector

(c) Tertiary sector

(d) None of these

Ans: c

Explanation: The tertiary sector contributes the most to India's economy. There are many areas in this sector like the service sector, real estate, hotels and restaurants, telecommunications etc. Currently, the service sector contributes 53.66% to the Indian economy. The second place is occupied by the Secondary sector that is about 31% to GDP.

11. Till what time Indian Economy want to become a US$5 trillion dollar economy?

(a) 2022-23

(b) 2024-25

(c) 2027-28

(d) 2029-30

Ans: b

Explanation: India's economy has been targeted to be $ 5 trillion by 2024-25. For this, it is necessary to keep the growth rate of 9% every year. 

12. What is the base year for calculating India's GDP?

(a) 2004-05

(b) 2010-11

(c) 2011-12

(d) 2014-15

Ans: c

Explanation: The base year for India's GDP calculation is 2011-12. The central government wants to revise it 2017-18.

13. Who releases data of national income in India?

(a) NSSO

(b) CSO

(c) NITI Aayog

(d) none of the following

Ans:b

Explanation: The GDP figures in India are released by the Central Statistics Office (CSO), which comes under the Ministry of Statistics and Program Implementation (MOSPI).

14. Which country is the fourth-largest economy in the world in terms of nominal GDP?

(a) Germany

(b) Britain

(c) Japan

(d) Russia

Ans: a

Explanation: Germany is the fourth-largest economy in the world based on nominal GDP. size of the German economy is $ 3.86 trillion. 

15. The value of which work is added in the calculation of GDP?

(a) Housewives' works

(b) A teacher teaching his own child

(c) The value of resale of old shares

(d) Construction of new house by an artisan

Ans: d

Explanation: The value of the construction of a new house is added in the calculation of the GDP because it is a new production work in the economy.

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  • MohnishAug 28, 2021
    question No.7 is wrong because NVA = GVA-Depreciation.
    Reply

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