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NCERT Quiz: Economy

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Question 1

Which of the following statements are correct:
1) Gross National Product measures the aggregate production of final goods and services taking place within the domestic economy during a year.
2) Gross Domestic Product is the total measure of the flow of goods and services at market value resulting from current production during a year in a country, including net income from abroad.
3) Net national product (NNP) refers to the total market value of all final goods and services produced by the factors of production during a given time period, minus depreciation.

Question 2

Which of the following statements are correct:
1) GDP evaluated at current market price is used for comparison of GDPs of different countries.
2) Nominal GDP is the value of GDP at the current prevailing prices.
3) Real GDP is evaluated at constant prices.

Question 3

Which of the following statements are correct:
1) The ratio of nominal to real GDP is a called GDP Deflator.
2) GDP Deflator measures the change in the price level between the base year and the current year.
3) GDP Deflator is calculated by RBI.

Question 4

Along with GDP Deflator, there is another way to measure change of prices in an economy which is known as the Consumer Price Index (CPI). Consider the following differences between GDP Deflator and CPI:
1) CPI includes prices of imported goods. GDP deflator does not include prices of imported goods.
2) The weights are constant in CPI but they differ according to production level of each good in GDP deflator.

Question 5

Which of the following statements are correct:
1) A liquidity trap is a situation in which injections of cash into the private banking system by a central bank fail to decrease interest rates.
2) Liquidity trap makes monetary policy ineffective.
3) In situation of liquidity trap, everyone in the economy hold their wealth in money balance.
  • 11827 attempts
Mar 26Other State PSC