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VisionIAS - Online Self Test
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Questions for practice
1)

With reference to Incremental Capital Output Ratio (ICOR), which of the following statements is/are correct?

  1. High capacity utilization provides better ICOR.
  2. ICOR is independent of the technology used in a country.
  3. The long gestation period decreases the ICOR.

Select the correct answer using the code given below.

(a)1 only

(b)2 and 3 only

(c)1 and 3 only

(d)1, 2 and 3

2)

Consider the following statements with regard to Consumer Durables:

1. It refers to those goods which are for the purpose of consumption.

2. They have a durability of 3 years and above.

3. They are characterized by no resale values.

Which of the statement(s) given above is/are correct?

(a)1 and 2 Only

(b)2 and 3 Only

(c)1 and 3 Only

(d)1,2 and 3

3)

Consider the following statements with respect to the Gross National Product (GNP): 

  1. It is the value of output produced by the nationals of the country rather than the value of output produced within the country
  2. The output by Indians irrespective of where they are located is included in Gross National Product (GNP)

Which of the statements given above is/are correct?

(a)1 Only 

(b)2 Only 

(c)Both 1 and 2

(d)None of the Above 

4)

In the context of GDP calculation, consider the following statements:

  1. It fails to include the value of domestic chores in any of the expenditures.
  2. Some degree of barter exchange founds itself as a part of GDP calculation.

Which of the statements given above is/are correct?

(a)1 only

(b)2 only

(c)Both 1 and 2

(d)Neither 1 nor 2

5)

SNA 2008 (System of National Accounts) is developed by ______

(a)International Monetary Fund 

(b)International Bank for Reconstruction and Development

(c)United States of America 

(d)United Nations Statistical Commission (UNSC)

6)

Consider the following statements with respect to the Capital Goods: 

  1. Goods that assist in the production process are called capital goods
  2. Capital goods are assistants in the production process
  3. Capital goods are final goods and they are not themselves economically modified

How many of the statements given above is/are correct?

(a)Only one

(b)Only two

(c)Only three

(d)None

7)

Which of the following activities constitute the real sector in the economy? (UPSC 2022)

(1) Farmers harvesting their crops
(2) Textile mills converting raw cotton into fabrics
(3) A commercial bank lending money to a trading company
(4) A corporate body issuing Rupee Denominated Bonds overseas

Select the correct answer from the codes given below:

(a)1 and 2 only

(b) 2, 3 and 4 only

(c) 1, 3 and 4 only

(d) 1, 2, 3 and 4

8)

For the calculation of the GDP of India, which of the following would be excluded?

1. Goods and Services produced in the Indian embassy abroad.

2. Goods and services produced by foreign embassies in India.

3. Air India operating a flight service between New York and Chicago.

4. Air India operating a flight between New Delhi and Tokyo.

5. British Airways operating a flight service between Mumbai and Delhi.

Choose the correct code from below:-

(a)Only 2 & 5

(b)Only 2 & 3

(c)Only 2 

(d)None of the above

9)

Elaborate Circular flow of Income and output in a simple economy. (150 Words/10 marks)

10)

Mention in detail about Incremental capital-output ratio?(150 words/10 marks)



Answers
1) a
2) a
3) c
4) c
5) d
6) c
7) a
8) a