General Knowledge Quiz for CDS 2020(Characteristics of Indian Economy): 8th Jan 2020

General Knowledge Quiz for CDS 2020(Characteristics of Indian Economy): 8th Jan 2020



Jai Hind Aspirants, Defence Adda is providing you all with this quiz on General Knowledge questions for CDS, AFCAT, CAPF and other Defence Examinations. The questions asked in General Knowlegde Section  are based on the topics from History, Polity, Geography, Economics and General Science. We will provide you Important Questions on daily basis so that it becomes easy for you to crack written exam and get call letter for SSB Interview.



Q1. Which among the following methods of GDP calculation theoretically generates higher value of GDP?
1. Output Method
2. Income Method
3. Expenditure Method

(a) 1 only
(b) 2 only
(c) 3 only
(d) All of them are theoretically equal

Q2. Which one of the following best defines the Gross National Product (GNP)?

(a) It is the value of all final goods produced within a domestic territory irrespective of person producing.
(b) It is the value of all final goods produced by the citizens of country irrespective of where they are produced.
(c) It is the total value of goods produced and services provided in a country during one year, after depreciation of capital goods has been allowed for.
(d) It is equal to equals the gross domestic product minus depreciation on a country's capital goods.

Q3. Which among the following constitutes factor costs in measurement of income?
1.Wages
2. Rents
3. Interests
4. Profits

(a) 1 and 2
(b) 2 and 4
(c) 1 and 3
(d) 1, 2, 3 and 4

Q4. Philip’s Curve is related to ____________.

(a) Supply and Demand
(b) Savings and Investment
(c) Rate of Unemployment
(d) Rate of Poverty

Q5. Per capita income is defined as the 

(a) National Income / Population
(b) National Income + Population
(c) National Income – Population
(d) National Income * Population

Q6. Which country developed Gross Happiness Index?

(a) China
(b) Bangladesh
(c) India
(d) Bhutan

Q7. Which among the following relates with the Lorenz Curve?

(a) Inequality of the national income
(b) Rate of poverty
(c) Unemployment rate in the country
(d) Rate of investment in economy

Q8. Which among the following best defines the process of disinvestment?

(a) Flooding of private shares in the economy
(b) Selling of government shares to the private companies
(c) Increasing of government investment in the market
(d) Closing down of private business in the economy

Q9. If the price of an inferior good falls, its demand will ___________.

(a) rise
(b) fall
(c) remains constant
(d) can’t be determined

Q10. Taxation is a tool of ____________ policy.

(a) monetary
(b) price
(c) fiscal
(d) wage


Solutions

S1. Ans.(d)
Sol. All the methods of GDP yield same value of GDP theoretically.

S2. Ans.(b)
Sol. Gross Domestic Product is the value of all final goods produced within a domestic territory irrespective of person producing.
Net National Product is the total value of goods produced and services provided in a country during one year, after depreciation of capital goods has been allowed for.
Net Domestic Product is equal to equals the gross domestic product minus depreciation on a country's capital goods.

S3. Ans.(d)
Sol. All of them constitutes factor costs in measurement of income.

S4. Ans.(c)
Sol. Philip’s Curve denotes a supposed inverse relationship between the level of unemployment and the rate of inflation.

S5. Ans.(a)
Sol. Per Capita Income is defined as the average income of the country which is calculated by dividing national income with total population of the country.

S6. Ans.(d)
Sol. The concept of Gross Happiness Index was developed in Bhutan.

S7. Ans.(a)
Sol. Lorenz curve is a graphical representation of the distribution of income or of wealth.

S8. Ans.(b)

S9. Ans.(a)

S10. Ans.(c)
Sol. Fiscal policy is the use of government revenue collection and expenditure to influence the economy.



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