mains-paper-v-indian-economy-national-income-and-budget-question-india

WBCS MAIN PAPER V : INDIAN ECONOMY - NATIONAL INCOME & BUDGET

1.Which of the following comes under the Union Budget?

(A) Railways (B) Municipalities (C) Panchayats (D) Posts and Telegraphs

2. Which sector contributes most to Gross Domestic Product in India?

(A) The Industrial Manufacturing sector

(B) The Agricultural sector

(C) The Tertiary sector

(D) The Mining sector

3. Fiscal deficit in the Central Budget of India is

(A) total expenditure minus revenue receipts.

(B) total expenditure minus capital receipts.

(D) Total expenditure minus total receipts excluding borrowings and other liabilities.

4. Indian Rupee is fully convertible in

(A) Current Account

(B) Capital Account

(D) None of the above

1. Which year is considered as 'Golden Year of Fiscal Discipline' during the 2010s? (fiscal deficit 3.9% of GDP)

(A) 2007-08

(B) 2008-09

(D) 2006-07

2. Budget deficit does NOT take into account

(A) capital budget deficit.

(B) interest payments on public debt.

(D) balance of payments deficit

3. In India, which one among the following formulates the fiscal policy?

(A) Finance Commission

(B) Ministry of Finance

(D) NITI Aayog

4. Which one of the following items is included in the capital account of the balance of payments?

(A) Private Transfers

(B) Investment income

(D) Commercial borrowings

5. The fiscal policy is weakened by the presence of

(A) Interest sensitiveness of investment

(B) Public debt

(D) All of the above

1.National Income of India is competed by

(A) Finance Commission (B) Indian Statistical Institute (C) National Development Council (D) Central Statistical Organisation

2.The per capita income has been low in India because

(A) of population growth. (B) of price rise. (C) more people are in rural areas. (D) of regional imbalances.

3.The value of national income adjusted for inflation is called

(A) Per capita income (B) Disposable income (C) Inflation Rate (D) Real National Income

4.National expenditure includes

(A) Consumption expenditure (B) Investment expenditure

1.Government expenditure on the following item do not contribute to national income :

(A) Defence expenditure

(B) Subsidy on public enterprises

(C) Interest on loan

(D) Administrative expenditure

2.Which of the following items does not come under National Income measurement ?

(A) Wages to agricultural labourer paid in kind.

(B) Receipt from second hand sale of an automobile.

(D) Value of the product kept for self consumption.

3.Which one of the following items is included in National income ?

(A) Subsidy on rationing (B) Scholarship (C) Administrative expenditure (D) Relief grant

4.Which concept of money supply includes currency, demand deposits with commercial banks, other deposits with RBI, time deposits with commercial banks ?

(A) M1 (B) M2 (C) M3 (D) M4

1.GNP = GDP + X - M

where M means

(A) income earned and received by nationals within the boundaries of foreign countries.

(B) income received by foreign nationals from wihtin the country.

(D) indirect taxes and subsidies.

2.GDP (at market price) - NTT = ?

(A) NNP (at market price) (B) GNP (at factor cost) (C) NDP (at market price) (D) None of these

3.Who is the author of the book 'Poverty and Un-British Rule' in India' ?

(A) Dadabhai Naoroji (B) Amartya Sen (C) Pranab Mukherjee (D) Amit Mitra

4.Area of Black Revolution :

(A) Oil seeds (B) Fish (C) Cotton (D) Petroleum Production

5.India's fiscal deficit has touched —— of the FY 19 Budget target of Rs. 6.24 lakh crore during the period of 9 months from April to December 2018.

(A) .90% (B) 100% (C) 112% (D) 115%

6.A loan offered by a group of lenders who work together to provide funds for a single borrower is called

(A) Bridge Loan (B) Assignment (C) Overdraft (D) Syndicate Loan

7.Which among the following will be a debit entry in India's balance of payments ?

(A) Imports of goods by India

(B) Income of Indian investments abroad

(D) Exports of services by India

1.Union Budget is generally presented in which of the following month ?

(A) January (B) February (C) July (D) December

2.GDP at factor cost is

(A) GDP minus indirect taxes plus subsidies

(B) GNP minus depreciation allowances

(D) GDP minus subsidies plus indirect taxes

3.Fresh evaluation of every item of expenditure from the very beginning of each financial year is called

(A) Fresh budgeting

(B) Deficit budgeting

(D) Zero-based budgeting

4.Fiscal Deficit in Union budget means

(A) the difference between current expenditure and current revenue.

(B) net increase in Union government's borrowings from RBI.

(C) the sum of budgetary deficit and net increase in internal and external borrowings.

(D) the sum of monetised deficit and budgetary deficit.

5.In India GDP is higher than GNP because

(A) import is higher than exports.

(B) capital inflow is higher than capital outflow.

(C) net factor income is negative.

(D) government expenditure is more than income.

6.National Income of India is compiled by

(A) Finance Commission

(B) Indian Statistical Institute

(D) Central Statistical Organisation

7.Which of the following statement is correct about Budget ?

It is a statement of financial position for a future period, setting out proposed expenditure and means of financing it.
Article 111 of the Constitution requires the government to present to Parliament a statement of estimated receipts and expenditure in respect of every financial year.

Select correct one.:

(A) Only I (B) Only ll (C) Both I & II (D) Neither I nor II

8.National income calculated at current price in India has shown a tendency to rise at a faster rate than national income at current prices because

(A) General price level has been rising fast.

(B) India's population has been rising.

(D) None of the above

8.Fiscal Responsibility and Budget Management Act concerns

(A) Fiscal deficit only

(B) Revenue deficit only

(C) Both fiscal and revenue deficit

(D) Neither fiscal nor revenue deficit

9. A Non-Resident Indian wants to get approval under Government Route for FDI in 'Single Brand' product retailing in India. Which among the following would be the appropriate agency to approach for this application ?

(A) Regional Office of Reserve Bank of India

(B) Head Office of Reserve Bank of India

(D) Department of Industrial Policy and Promotion (Ministry of Commerce)

1.Contribution of agriculture to Gross National Products is approximately

(A) 14% (B) 15% (C) 16.5% (D) 17.5%

2.Consider the following statements :

(1) India's GDP is more than its GNP.

(2) Net Factor Income from Abroad (NFIA) is positive for India.

Which of the statements given above is / are correct ?

(A) 1 only (B) 2 only (C) Both 1 and 2 (D) Neither 1 or 2

3.One of the problems in calculating the national income in India correctly is

(A) under-employment (B) inflation (C) non-monetised consumption (D) low savings

4.India's wage policy is based on

(A) Cost of living (B) Standard of living (C) Productivity (D) None of the above

5.The most important source of capital formation in India has seen

(A) Household savings

(B) Public sector savings

(D) Corporate savings

6.The data of estimation of India's National Income is issued by

(A) Planning Commission

(B) National Data Centre

(C) Central Statistical Organisation

(D) None of the above

7.Which is not added in the calculation of national income of India ?

(A) The value of goods and services

(B) The sold value of the old fridge

(D) Both (B) and (C)

8.How much does the primary sector contribute to India's GDP ?

(A) 26% (B) 20% (C) 53% (D) 14%

9.What base year is used to calculate per capita income in India ?

10.Which state has the highest per capita income in India ?

(A) Delhi (B) Punjab (C) Bihar (D) West Bengal

11.Which one among the following formulate the fiscal policy in India ?

(A) Planning Commission

(B) Finance Commission

(D) Ministry of Finance

12.Which one of the following is / are a / an indicator of the financial health of a country ?

(i) GDP (ii) PPP (iii) FDI in a year

(A) Only (i) (B) Only (ii) (C) Only (iii) (D) All (i), (ii) & (iii)

1.Has the inequality of income been reduced very much because of increased national income in India in the last three decades ?

(A) Yes (B) No (C) May be (D) May be not

2.Has the inequality of income been reduced very much because of increased national income in India in the last three decades ?

(A) Yes (B) No (C) May be (D) May be not

3.The Government Budget consists of which main components ?

(A) Revenue Budget and Capital Budget

(B) Capital Budget only

(D) None of the above

4.What is the primary Deficit in the Budget prepared by the finance ministry ?

(A) Total Expenditure — Total Revenue

(B) Fiscal Deficit — Interest Payments

(D) Capita! Expenditure — Capital Revenue

5.The most important source of capital formation in India has been -

(A) Household saving

(B) Public sector saving

(D) Corporate saving

1.Which of the following is not true about Indian economy

(A) The contribution of the primary sector in the GDP is increasing regularly

(B) The share of its tertiary sector increased

(D) It is an agrarian economy directly shifting towards service economy

2.The National Income of India during 2013-14 at current prices is estimated at

(A) Rs. 92.4 lakh crore (B) Rs. 91.5 lakh crore (C) Rs. 98.6 lakh crore (D) None of the above

Consider the following :
Indian Textiles Industry contributes about 4% to the GDP
The textile sector is the second largest provider of employment
It contributes 15% to the country's export earnings

(A) Only 1 is true (B) 2 & 3 are true (C) 1 & 2 are true (D) All are true

1.Fiscal Deficit is -

(A) Revenue Receipts + Capital receipts (only recoveries of loan and other receipts) - Total expenditure

(B) Budget Deficit + Government's market borrowings and liabilities

(D) All of the above

2.Primary Deficit is equal to -

(A) Fiscal Deficit + Interest payment

(B) Fiscal Deficit - Interest payment

(D) All of the above

3.Fiscal Policy is that part of Govt. policy which is -

(i) Concerned with raising revenue taxation and Govt. spending

(ii) In regard to taxation and spending program

(iii) Govt. spending policies that influence macro economic conditions

(iv) For dealing with the budget especially with taxation and borrowing.

Which one of the above statements is true ?

(A) Only (i) (B) (i) and (ii) (C) All of the above (D) None of the above

4.The share of agriculture and allied sectors in India's GDP in 2013-14 -

(A) 14.7% (B) 12.5% (C) 13.7% (D) 21%

5.National Income of India is measured by -

(A) C.S.O. (B) Planning Commission (C) Finance Ministry (D) R.B.I