Nichod Series MCQ

National income Accounting
CUET 2023 l Economics l Use code – Y490

Which of the following statements is true about the
industrial sector in the Indian economy during the
British rule?
1. India faced an acute shortage of goods that were
made within the country
2. The growth rate for the industrial sector in India
was minimal
3. India was reduced to being an exporter of raw
materials
4. There was a huge increase in cheap imports of
goods in India which were manufactured in
Britain
Which of the following statements correctly reflects
the demographic profile of India on the eve of its
independence?
1. India had an average life expectancy of 63 years
2. Both the birth rate and death rate in India were
very low
3. The overall levels of literacy in India was even
less than 16 percent
4. The infant mortality rate in India was just around
70 per every thousand live births
Which of the following services was totally
inadequate during British rule in India?
1. Law and order, railways and ports
2. Postal services
3. Railways and ports
4. None of the above
A firm hires the services of a chartered accountant and pays fees. For
the firm, payment of fess is:-
a) Final expenditure
b) Intermediate expenditure
c) Investment expenditure
d) Capital expenditure
Classification of goods depend on the:

a) consumption of goods
b) production of goods
c) first – use of goods
d) end -use of goods
Reason for the circular flow of income is:

a) government intervention
b) production of goods and services
c) mutual interdependence of producer and household sector
d) invention of money
Economics Use code Y490 For Maximum Discount
When demand for one good falls due to rise

in price of the other good, the two
goods are likely to be:
a) Complements
b) Substitutes
c) Competitive
d) Not related
“Change in quantity demanded” of a good is

on account of change in:
a) Price of the related good
b) Own price of the good
c) Income of the buyer
d) Tastes
9
A demand curve “shits” due to change in:

a) Tastes
b) Income
c) Price of the related goods
d) All the above
10
Downward sloping demand curve shows

that:
a) As price falls demand falls
b) As demand falls price falls
c) As price rises demand falls
d) As price rises demand rises
11
Which of the following is not correct?

a) NNP at market price = GNP at market price + Depreciation
b) NDP at market price = NNP at market price – net factor income from
abroad
c) NDP at factor cost = NDP at market price – Indirect taxes + subsidies
d) GDP at Factor cost = NDP at factor cost + Depreciation
What led to the poor agricultural production that
affected the Indian economy during the eve of
Independence?
1. Drought during that time.
2. Britishers did not introduce modern technologies
or irrigational equipment or fertilizers for
agricultural practices.
3. Tsunami during the eve of Independence.
4. Britishers did not have enough agriculture
knowledge.
On the eve of Independence what was the actual
growth rate of the per capita income?
1. 0.28%
2. 0.7%
3. 0.5%
4. 1.8%
Q. The percentage of the population participating in production

activity is called ______.
a) Labour force
b) Workforce
c) Labour supply
d) participation rate
Q. Agriculture laborers, farmers, owners of small enterprises which

employ less than 10 workers fall in the category of
a) formal sector
b) information sector
c) casual workers
d) regular workers
Q. Unemployment which occurs for the time period when workers

move from one job to another job is known as _______ .
a) Cyclical unemployment
b) Seasonal unemployment
c) Technological unemployment
d) Frictional unemployment
Which of the following statements is/are correct?

i) A worker is an individual who does some productive work to earn a
living
ii) Majority of the population in India is finding employment in the
service sector which is growing at a fast pace and
growing continuously.
Options
a) Both are true
b) Both are false
c) i) is true and ii) is false
d) i) is false, but ii) is true
Arrange the following events of China in Chronological order and

choose the correct alternative:
i) Great Proletarian Cultural Revolution
ii) Great Leap Forward campaign
iii) Introduction of Economic Reforms
iv) First five-year plan
Choose the correct alternative:
a) ii, iv, iii, i
b) iv, ii, i, iii
c) ii, iv, i, iii
d) iv, i, ii, iii
Consider the following statements

A government may cover up the deficit by
1. Withdrawing its cash balances from the central bank of the country.
2. borrowing from the central bank and commercial banks.
3. printing new money.
Of these statements
A. 1 and 2 are correct B. 1 and 3 are correct
C. 2 and 3 are correct D. 1, 2 and 3 are correct
Consider the following statements Non-Plan Revenue Expenditure

includes expenditure incurred on
1. interest payments.
2. maintenance of capital assets.
3. flood control.
Of these statements
A. 2 and 3 are correct B. 1 and 2 are correct
C. 1 and 3 are correct D. 1, 2 and 3 are correct
Consider the following statements The Reserve Bank of India

1. acts as a Banker’s Bank
2. act as a controller of capital issues
3. issues currency notes of various denominations
4. acts as a lender of the last resort for the sick industrial units
Which of the above statements are correct?

A. 1, 2, 3 and 4 B. 1, 2 and 3
C. 2 and 4 D. 1 and 3
Which of the following statements about the Indian
Economy is true during the Era of 1950-1990?
1. The abolition of intermediaries was a part of the
industrial reforms in India
external sector reforms in India
land reforms in India
banking reforms in India
Which one of the following , is not a goal of the
Planning Commission ?
a) Economic Growth
b) Equity
c) Resource conservation
d) Self-reliance
What is the term used for the policy ,which promote
setting up of an upper limit of the land that could be
owned by a landowner ?
a) Land Fragmentation
b) Land Ceiling
c) Land Cultivation
d) Land Tilling
Consider the following statement with respect to Indian
Industries and mention the correct combination.
I) Industrial Policy resolution was adopted in 1956
II) Karve Committee was set up in favour of small-
scale industries
III) In 1991,Industrial Licensing policy was abolished
for the improvement of Industries
a) Only I
b) Only II and III
c) None of the above
d) All of the above.
Read the following statement given below and choose
the correct alternative
Statement 1- Small scale industries are more capital
intensive
Statement 2- Industrial policy resolution formed the
basis of second five year plan
a) Both are correct
b) Both are incorrect
c) Statement 1 is correct and statement 2 is incorrect
d) Statement 1 is incorrect and statement 2 is correct
Which of the following statements about the fiscal
deficit is correct?
1. It is a part of the total government expenditure
that is met by imposing more taxes
that is met through borrowings
that is met by selling the shares held by them in
public companies
that is met by imposing public assets
Which of the following statements is true about the
import licensing reforms under the new economic
policy of 1991?
1. The import licensing was abolished except in the
case of hazardous items
2. The import licensing was abolished except in the
case of environmentally sensitive industries
3. Both a and b are incorrect
Which of the following statements is true about
financial sector reforms?
1. Financial sector reforms mainly relate to the
banking sector
2. Financial sector reforms mainly relate to the
foreign exchange markets
3. Both a and b are correct
How many industries, licensing is still necessary
1. 7
2. 6
3. 8
4. 10
GST has been implementation from……….

1. April 1 2018
2. January 1, 2018
3. January 1, 2017
4. July 1 2017
Which of the following statements is not a

merit of human capital formation?
1. Human capital formation plays an
important role in improving technical
knowledge
2. Human capital formation helps to expand
the size of businesses
3. Human capital formation is important for
the purpose of changing social outlooks
4. Human capital formation leads to an
increase in the overall cost of production
______ poor are the ones who regularly move in and out of
poverty.
a) Chronic
b) Churning
c) Occasionally
d) None of these
The earlier ‘Food for work Programme’ has now been

converted into:
a) Intensive Area Development Program
b) Integrated Rural Development Program
c) Mahatma Gandhi National Rural Employment Program
d) Minimum Needs Program
Q. An increase in real income along with an increase in economic

welfare is called:
a) Economic growth
b) economic development
c) Sustainable development
d) None of these
Q. One of the following is an example of economic infrastructure:

a) Roads
b) Health
c) Housing
d) Education
Which one of the following is not a non-institutional source of

credit?
a) Money-lenders
b) Co-operative credit
c) Traders and commission agents
d) Land Development Bank
Why is the minimum support price fixed by the government?

a) For government own benefit
b) To safeguard the interest of farmers
c) To safeguard the interest of consumers
d) None of these
_________is the apex body which coordinates the functioning of

different financial
institutions working for the expansion of rural credit.
a) NABARD
b) Self Help Groups
c) Regional Rural Banks
d) Commercial Banks
The period between_____________is known as ‘Golden
Revolution Period’
a) 1991-2001
b) 1991-2003
c) 1993-2001
d) 1990-2003
Which one of the following transactions represents a credit entry in the

current account of a country's balance of payments?
A. Merchandise imports
B. Transportation services rendered by foreign companies
C. Expenditure of foreign tourists in a country.
D. Fees paid to foreign contractors and engineers
The flexible exchange rate has a number of advantages. Which one of the following
is not to be considered as such an advantage?
A. The exchange rate moves in a free market to equate demand and supply so that
the market does not face the problem of scarcity or surplus of foreign currency.
B. It permits a continued existence of free trade and convertible currencies.
C. It permits a country to follow independent monetary and fiscal policies.
D. There is no need for keeping official foreign exchange reserves.
Which one of the following is non-debt flow of capital between

countries?
A. Commercial borrowings
B. Portfolio investment
C. Short-term borrowings from IMF.
D. Sale and purchase of bonds in the capital markets
Q. AYUSH Programme aims at :

a) Spreading medical facilities
b) Strengthening the non-allopathic system of medicines
c) Spreading good sanitary habits
d) Popularising self cures
Question
Low-income countries do not invest in which of the given
infrastructural services?
(A) Transport
(B) Irrigation
(C) Power
(D) Telecommunication
Question
Which of the following is not a function of primary health care?
(A) Spreading education concerning prevailing health problems
(B) Promoting food supply and proper nutrition
(C) Conducting research
(D) Providing essential drugs
The Great Leap Forward (GLF) campaign in China focussed on:

a) Widespread industrialisation
b) new agricultural strategy
c) privatization
d) economic reforms
Introduction of Economic Reform in Pakistan

took place in _ .
a) 1978
b) 1980
c) 1988
d) 1991
Arrange the following events of Pakistan in chronological order
and choose the correct alternative:
i) Nationalisation of Capital Goods
ii) First Five Year Plan
iii) Pakistan’s Independence Day
iv) Introduction of Reforms
Choose the correct alternative:
a) ii, i, iv, iii
b) iv, ii, i, iii
c) iii, ii, i, iv
d) iv, i, ii, iii
India is not a member of which of the following

regional/global economic grouping?
a) SRRRC
b) BRICS
c) G-7
d) G-20
The total income earned in any given year by the owners of productive
resources is measured by
A. personal income
B. disposable income
C. gross national product
D. national income
An example of double counting in national income would be

A. wages of bus and train drivers
B. cotton output and cotton cloth output
C. electricity output and water output
D. tax receipts and earnings of inland revenue officials
Which of the following would be included in calculation of national

income?
1. Commission paid to a salesman
2. Subsidies paid to a farmer
3. Social Security payments
4. Payments to a part time polytechnic lecturer
Select the correct answer using codes given below:
A. 1, 3 and 4 B. 1 and 4
C. 2, 3 and 4 D. 1, 2, 3 and 4
Money which is accepted as a medium of exchange because of

the trust between the payer and the payee is called:
(a) full bodied money
(b) credit money
(c) fiat money
(d) fiduciary money
High powered money is equal to :

(a) money supplied by the RBI only
(b) total supply of money in the economy
(c) notes and coins held by the economy
(d) money (notes and coins) held by the people, vault cash of
the commercial banks as well as cash reserve of the
commercial banks with the RBI
Which of the following is a quantitative monetarymeasure?

(a) Open market operation
(b) Selective credit
(c) Margin requirement
(d) Moral suasion
RBI reduces reverse repo rate to:

(a) Control money supply
(b) Encourage money supply
(c) Control Inflation
(d) Both (a) and (b)
Decision on demonetisation was made public by Prime Minister

on:
(a) 8th Oct 2016 (b) 8th Nov 2016
(c) 8th Dec 2016 (d) 8th Jan 2016
Suppose in an economy, the initial deposits of 400 crore lead to the

creation of total deposits worth 4,000 crore. Under the given
situation, the value of reserve requirements would be
(a) 0.01 (b) 1

(c) 0.1 (d) 0.4
Which of the following is/are included in the capital budget of the

Government of India?
A. Borrowings from the RBI.

B. Loans received from foreign governments.
C. Expenditure on acquisition of assets like roads, buildings,
machinery etc.
D. Loans and advances granted to the States and Union Territories.
Select the correct answer using the codes given below–

A. 1, 2 and 4 B. 2 and 3
C. 1 alone D. 1, 2, 3 and 4
Which one of the following entails minimum expenditure by the

Government of India?
A. interest payments
B. defence expenditure
C. education, art, culture, scientific services and research
D. None of the above
Which one of the following heads of expenditure of the Central

Government, accounts for the largest amount of revenue expenditure?
A. Defence
B. Interest Payments
C. Subsidies
D. Grants to states and Union Territories
Which one of the following sources is not considered as a source of

Government revenue?
A. Taxes B. Surpluses of public enterprises
C. Transfer payments D. Mobilization of internal loans and deposits
Taxable capacity is a function of
A. distribution of income
B. size of national income
C. size of population
D. all the above
5. Consider the following statements:

Devaluation results in a
1. Rise in the domestic price of imports
2. Rise in the domestic price of exports
3. Rise in the domestic price of exports and imports
4. Fall in the foreign price of exports
Which of the above statements are correct?

A. 1, 2 and 3 B. 1 and 2
C. 2, 3 and 4 D. 1 and 4
Which one of the following is the major characteristic of foreign direct

investment (FDI)?
A. It is non-debt creating capital flow.

B. It is portfolio investment in stock market.
C. It is that investment which involves debt servicing.
D. It is investment made by foreign institutional investors in
government securities.
Match List-I with List-II and select the correct answer using the codes given
below the lists:
List-I List-II
(a) Unrequited receipts 1. Gifts, reparations received from
foreigners
(b) Accommodating finance 2. Lending, borrowing finance and gold transfer
(c) Transfer items 3. Commercial imports and exports
(d) Autonomous items 4. Currency transfer by monetary authority
The main objective of the World Trade Organization is to secure among
others
A. A general agreement among Common Market Countries on

technical training and mutual prices of traded goods.
B. The maintenance of intellectual property rights and patent rights of
member countries
C. An improvement in the USA's terms of trade in the next decade.
D. A reduction in tariffs through negotiation, elimination of import
quotas and globalization of international trade

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National income Accounting

CUET 2023 l Economics l Use code – Y490

Classification of goods depend on the:

Reason for the circular flow of income is:

When demand for one good falls due to rise

“Change in quantity demanded” of a good is

A demand curve “shits” due to change in:

Downward sloping demand curve shows

Which of the following is not correct?

Q. The percentage of the population participating in production

Q. Agriculture laborers, farmers, owners of small enterprises which

Q. Unemployment which occurs for the time period when workers

Which of the following statements is/are correct?

Arrange the following events of China in Chronological order and

Consider the following statements

Consider the following statements Non-Plan Revenue Expenditure

Consider the following statements The Reserve Bank of India

Which of the above statements are correct?

GST has been implementation from……….

Which of the following statements is not a

The earlier ‘Food for work Programme’ has now been

Q. An increase in real income along with an increase in economic

Q. One of the following is an example of economic infrastructure:

Which one of the following is not a non-institutional source of

Why is the minimum support price fixed by the government?

_________is the apex body which coordinates the functioning of

Which one of the following transactions represents a credit entry in the

Which one of the following is non-debt flow of capital between

Q. AYUSH Programme aims at :

The Great Leap Forward (GLF) campaign in China focussed on:

Introduction of Economic Reform in Pakistan

India is not a member of which of the following

An example of double counting in national income would be

Which of the following would be included in calculation of national

Money which is accepted as a medium of exchange because of

High powered money is equal to :

Which of the following is a quantitative monetarymeasure?

RBI reduces reverse repo rate to:

Decision on demonetisation was made public by Prime Minister

Suppose in an economy, the initial deposits of 400 crore lead to the

(a) 0.01 (b) 1

Which of the following is/are included in the capital budget of the

A. Borrowings from the RBI.

Select the correct answer using the codes given below–

Which one of the following entails minimum expenditure by the

Which one of the following heads of expenditure of the Central

Which one of the following sources is not considered as a source of

Taxable capacity is a function of

5. Consider the following statements:

Which of the above statements are correct?

Which one of the following is the major characteristic of foreign direct

A. It is non-debt creating capital flow.

A. A general agreement among Common Market Countries on

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