National Income & Gross Domestic Product (Economic Development) Part-I

Total Questions: 55

51. At present (2015) which of the following base year is being used for estimation of National Income in India ? [U.P.P.C.S. (Mains) 2016]

Correct Answer: (c) 2011-12
Solution:The CSO, in 2015, replaced the GDP series with the base year 2004-05 with a new series that used 2011-12 as a baseline for national accounts. In the new series, the CSO did away with Gross Domestic Product (GDP) at factor cost and adopted the international practice of valuing industry-wise estimates as Gross Value Added (GVA) at basic prices.

The new series has followed the guidelines of the United Nations' System of National Accounts (UNSNA) 2008, replacing the earlier template of UNSNA 1994. Thus, option (a) is the right answer.

52. In India for estimation of GDP at constant prices, at present the base year is : [U.P.P.C.S. (Pre) 2009]

Correct Answer: (a) 1999-2000
Solution:When this question was asked, the CSO was using 1999-2000 as the base year for estimation of Gross Domestic Product at constant prices. At present, the base year for estimation of GDP at constant prices is 2011-12.

Such changes are routine, occurring approximately every five years. The government has suggested 2017-2018 as the new base year for GDP and Index of Industrial Production (IIP), and 2018 for the Consumer Price Index (CPI). This shift includes 6 sectors and 14 sub-sectors in the estimation of national income, a refinement from the previous 13 sub-sectors.

53. Which of the following is the correct base year for measuring National Income in India ? [U.P.U.D.A./L.D.A. (Spl.) (Pre) 2010]

Correct Answer: (c) 2004-05
Solution:When this question was asked, the base year for the estimation of National Income in India was 2004-05. At present, the base year for measuring National Income in India is 2011-12.

Such changes are routine, occurring approximately every five years. The government has suggested 2017-2018 as the new base year for GDP and Index of Industrial Production (IIP), and 2018 for the Consumer Price Index (CPI). This shift includes 6 sectors and 14 sub-sectors in the estimation of national income, a refinement from the previous 13 sub-sectors.

54. The new GDP series released by the CSO in February, 1999 is with reference to base price of : [U.P.S.C (Pre) 2000, U.P.P.C.S. (Mains) 2004]

Correct Answer: (c) 1993-94
Solution:The new GDP series released by the CSO in February, 1999 was with reference to base prices of 1993-94. At present, the base year for the National Income estimates is 2011-12.

Such changes are routine, occurring approximately every five years. The government has suggested 2017-2018 as the new base year for GDP and Index of Industrial Production (IIP), and 2018 for the Consumer Price Index (CPI). This shift includes 6 sectors and 14 sub-sectors in the estimation of national income, a refinement from the previous 13 sub-sectors.

55. Consider the following statements and select the correct answer from the code given below : [U.P.P.C.S. (Pre) (Re-Exam) 2015]

Assertion (A): Economic development requires a multi- Am dimensional approach.

Reason (R): The present Government of India is focus- sing mainly on micro-economic issues.

Correct Answer: (c) (A) is true, but (R) is false
Solution:Economic development of any country requires a multi- dimensional approach so that the targets of inclusive development can be achieved. Thus Assertion (A) is correct. The present Government of India is focussing on 'Micro' as well as 'Macro' economic issues.

Macro economic issues includes Current Account Deficit, Fiscal Deficit, Inflation, National Income, Employment rate, Balance of Payment, increase in Investment etc. Micro economic issues includes production of firm, industry, person etc., consumption, distribution, price determination etc. Thus, Reason (R) is false.