1.
Each correct answer carries 1 mark and each wrong answer
carries 0.10 negative marks.
The headline GDP as per GDP at 2011-12 base is
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Real GDP at
1
Factor Cost
Real GVA at
2
Factor Cost
Real GVA at
3
Basic Price
Real GDP at
4
Market Price
GVA at Basic Price can be obtained from GDP at Factor cost
by
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Adding
Production tax
1 and subtracting
production
Subsidy
Adding Product
tax and
2 subtracting
product
Subsidy
Subtracting
Production tax
3 and adding
production
Subsidy
Subtracting
Product tax
4 and adding
product
subsidy
GVA at Factor cost as per the base 2011-12 is equivalent to
which of the following as per GDP at 2004-05 base
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GDP at Factor
1
Cost
GDP at Market
2
Price
GNP at factor
3
cost
GNP at Market
4
Price
Consider the following to answer question 1
GDP at Market Price =Rs. 150 lakhs
Production Tax=Rs. 5 Lakhs
Product Tax=Rs. 20 Lakhs
Production Subsidy= Rs. 10 lakhs
Product Subsidy=Rs. 30 lakhs
What is the value of GDP at basic Price?
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1 Rs. 145 lakhs
2 Rs. 165 lakhs
3 Rs. 135 lakhs
4 Rs. 140 lakhs
Consider the following to answer question 1
GDP at Market Price =Rs. 150 lakhs
Production Tax=Rs. 5 Lakhs
Product Tax=Rs. 20 Lakhs
Production Subsidy= Rs. 10 lakhs
Product Subsidy=Rs. 30 lakhs
What is the value of GDP at basic Price?
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1 Rs. 145 lakhs
2 Rs. 165 lakhs
3 Rs. 135 lakhs
4 Rs. 140 lakhs
Consider the following to answer question 1
GDP at Market Price =Rs. 150 lakhs
Production Tax=Rs. 5 Lakhs
Product Tax=Rs. 20 Lakhs
Production Subsidy= Rs. 10 lakhs
Product Subsidy=Rs. 30 lakhs
What is the value of GDP at basic Price?
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1 Rs. 145 lakhs
2 Rs. 165 lakhs
3 Rs. 135 lakhs
4 Rs. 140 lakhs
Which of the following markets is closely related to
macroeconomics?
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Cattle futures
1
market.
Fulton's fish
2
market.
Skilled labor
3
market
Nation's
4 unemployment
rate
In one year in the country of Countem, workers earned
$4150, proprietor's income was $392, rental income was $20,
corporate profits were $683, net interest was $228, taxes on
production and imports were $329, business current transfer
payments were $12, the current surplus of government
enterprises was $3, statistical discrepancy was $28,
consumption of fixed capital was $882, factor income
received from the rest of the world was $331, and payments
of factor income to the rest of the world was $623. Based on
these data, the national income, net national product, gross
national product, and gross domestic product figures would
be
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5817, 5845,
1
7019, 6727
7019,6727,
2
5845, 5589
5589, 6073,
3
6727, 7019
5817, 5845,
4
6727, 7019
6727, 7019,
5
5815, 5844
Carl's Computer Center sells computers to business firms.
Businesses then use the computers to produce other goods
and services. Over the past year, sales representatives were
paid $3.5 million, $0.5 million went for rent on the building,
$0.5 million went for taxes, $0.5 million was profit for Carl,
and $10 million was paid for computers at the wholesale
level. What was the firm's total contribution to GDP?
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1 $5 million
2 $10 million
3 $15 million
4 $4.5 million
5 $0.5 million
Monica grows coconuts and catches fish. Last year she
harvested 1500 coconuts and 600 fish. She values one fish as
having a worth of three coconuts. She gave Rachel 300
coconuts and 100 fish for helping her to harvest coconuts and
catch fish, all of which were consumed by Rachel. Monica
consumed the remaining fish and coconuts. In terms of fish,
total consumption by both Monica and Rachel would equal
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1 700 fish.
2 900 fish.
3 1100 fish.
4 2700 fish.
Inventories include each of the following EXCEPT
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unsold finished
1
goods.
goods in
2
process.
raw materials
3
held by firms.
office
4
equipment.
Fred the farmer purchased five new tractors at $20,000 each.
Fred sold his old tractors to other farmers for $50,000. The
net increase in GDP of these transactions was
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1 $50,000.
2 $100,000.
3 $125,000.
4 $150,000.
Fred the farmer purchased five new tractors at $20,000 each.
Fred sold his old tractors to other farmers for $50,000. The
net increase in GDP of these transactions was
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1 $50,000.
2 $100,000.
3 $125,000.
4 $150,000.
Suppose we switch the base year from 2000 to 2008. This
change in the base year will cause:
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nominal GDP
1 in every year to
increase.
nominal GDP
2 in every year to
decrease.
both nominal
and real GDP
3
in every year to
decrease.
real GDP in
4 every year to
decrease.
none of the
5
above
The prices for which of the following goods are included in
both the GDP deflator and the consumer price index?
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goods bought
1
by households.
goods bought
2
by firms.
good bought
3 by
governments.
goods bought
by foreign
4
households
(i.e., exports).
all of the
5
above.
Imagine that an economy produces two goods, apple pies and
bird feeders. In 2007, the economy produced 60 apple pies
and 30 bird feeders, and the prices of apple pies and bird
feeders were $6 and $10, respectively. In 2008, the economy
produced 80 apple pies and 35 bird feeders, and the prices of
apple pies and bird feeders were $7 and $12, respectively.
Which of the following represent the nominal and real GDP
growth between 2007 and 2008
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1 18, 26
2 18, 48
3 48, 18
4 26, 18
5 48, 26
Imagine that an economy produces two goods, apple pies and
bird feeders. In 2007, the economy produced 60 apple pies
and 30 bird feeders, and the prices of apple pies and bird
feeders were $6 and $10, respectively. In 2008, the economy
produced 80 apple pies and 35 bird feeders, and the prices of
apple pies and bird feeders were $7 and $12, respectively.
Which of the following represent the nominal and real GDP
growth between 2007 and 2008
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1 18, 26
2 18, 48
3 48, 18
4 26, 18
5 48, 26
GDP in current dollars is equivalent to which of the
following?
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1 real GDP
GDP in terms
2
of goods
GDP in 2000
3
dollars
GDP in
4 constant
dollars
none of the
5
above
Which of the following calculations will yield the correct
measure of real GDP?
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divide nominal
GDP by the
1
consumer price
index.
divide the GDP
deflator by the
2
consumer price
index.
multiply
3 nominal GDP
by the
consumer price
index.
multiply
nominal GDP
4
by the GDP
deflator.
none of the
5
above
The GDP deflator provides a measure of which of the
following?
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the ratio of
GDP to the
1
size of the
population.
the ratio of
GDP to the
2 number of
workers
employed.
the ratio of
3 nominal GDP
to real GDP.
the price of a
typical
4 consumer's
basket of
goods.
real GDP
divided by the
5
aggregate
price level.
A firm's value added equals:
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its revenue
1 minus all of its
costs.
its revenue
2 minus its
wages.
its revenue
3
minus its
wages and
profit.
its revenue
minus its cost
4
of intermediate
goods.
none of the
5
above
In a given year, suppose a company spends $100 million on
intermediate goods and $200 million on wages, with no other
expenses. Also assume that its total sales are $800 million.
The value added by this company equals:
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1 $200 million.
2 $300 million.
3 $500 million.
4 $700 million.
5 $800 million.
Use the following information to answer this question. If
nominal GDP rises from $100 trillion to $110 trillion, while
the GDP deflator rises from 2.0 to 2.2, the percentage change
in real GDP is approximately equal to:
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1 -10%
2 10%
3 20%
4 9.1%
5 0%
Suppose nominal GDP increased in a given year. Based on
this information, we know with certainty that:
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real output has
1
increased.
the price level
2 (GDP deflator)
has increased.
real output and
the price level
3 (GDP deflator)
have both
increased.
either real
output or the
price level
4
(GDP deflator)
have
increased.
real output has
increased and
5
the price level
has decreased.
GDP at market Price is equivalent to
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GDP at factor
cost + product
tax +
production tax-
1
product
subsidy-
production
subsidy
GVA at factor
cost + product
tax +
production tax-
2
product
subsidy-
production
subsidy
GVA at basic
price + product
3
tax – product
subsidy
All of the
4
above
Which of the following is an example of a production subsidy
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Subsidies to
village and
1
small
industries
Fertilizer
2
subsidies
Interest
subsidies given
3 to farmers,
households etc
through banks
Subsidies for
providing
4 insurance to
households at
lower rates
Which of the following is an example of product subsidy
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Subsidies to
1
Railways
Administrative
subsidies to
2
corporations or
cooperatives
Subsidy for
maintaining
3
buffer stock of
Tea growers
Payment to
LIC for pension
4
plan for Senior
citizens
Which of the following is an example of a production tax
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1 Excise Duty
2 Service Tax
Import and
3
Export duties
Land
4
Revenues
The MCA-21 project is an initiative of
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Ministry of
1 Corporate
Affairs
Ministry of
2
Industry
Ministry of
Planning and
3
Programme
Implementation
Ministry of
4
Finance
The MCA-21 project helps to get better estimate of value
added of which sector
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1 Manufacturing
2 Government
3 Agriculture
4 Services
