National Income & Gross Domestic Product (Part

21. The latest Per Capita Income at current prices is lowest for the Indian State of : [B.P.S.C (Pre) 2017]

Correct Answer: (a) Bihar

Solution:As per the RBI's Handbook of Statistics on the Indian Economy, 2022-23, the Per Capita Income (NSDP Per Capita) of Bihar at current prices is Rs. 47498 in 2021-22, which is lowest among all States in India. The per Capita Income of Goa (Rs. 472070) is highest in the country in 2021-22.

Per Capita Income of India is a measure of the average income earned by an individual in India within one year. The Per Capita Income of India is calculated by dividing the National Income of India by its total population. This represents the average annual income and not a measure of an individual's wealth as a whole. Per Capita Income of India is an important measure of its development. It is an indicator of the standard of living in the country. Per Capita Income of India forms the basis of policymaking in various sectors of the economy.
Per Capita Income is determined by dividing National Income by the total population of India. The National Income of India is sum total of the monetary value of goods and services that are produced in India within a period of one year.

22. Which State has minimum Per Capita Annual Income ? [U.P.P.C.S. (Pre) 1993, U.P.P.C.S. (Pre) 2008, U.P. Lower Sub. (Pre) 2004]

(a) Bihar
(b) Madhya Pradesh
(c) Odisha
(d) Uttar Pradesh

Correct Answer: (a) Bihar

Solution:As per the RBI's Handbook of Statistics on the Indian Economy, 2022-23, the Per Capita Income (NSDP Per Capita) of Bihar at current prices is Rs. 47498 in 2021-22, which is lowest among all States in India. The per Capita Income of Goa (Rs. 472070) is highest in the country in 2021-22.

Per Capita Income of India is a measure of the average income earned by an individual in India within one year. The Per Capita Income of India is calculated by dividing the National Income of India by its total population. This represents the average annual income and not a measure of an individual's wealth as a whole. Per Capita Income of India is an important measure of its development. It is an indicator of the standard of living in the country. Per Capita Income of India forms the basis of policymaking in various sectors of the economy.
Per Capita Income is determined by dividing National Income by the total population of India. The National Income of India is sum total of the monetary value of goods and services that are produced in India within a period of one year.

23. Which of the following States has the highest Per Capita Income (at present) ? [U.P.P.C.S. (Pre) 1994]

(a) Goa
(b) Punjab
(c) Maharashtra
(d) Gujarat

Correct Answer: (a) Goa

Solution:As per the RBI's Handbook of Statistics on the Indian Economy, 2022-23, the Per Capita Income (NSDP Per Capita) of Bihar at current prices is Rs. 47498 in 2021-22, which is lowest among all States in India. The per Capita Income of Goa (Rs. 472070) is highest in the country in 2021-22.

Per Capita Income of India is a measure of the average income earned by an individual in India within one year. The Per Capita Income of India is calculated by dividing the National Income of India by its total population. This represents the average annual income and not a measure of an individual's wealth as a whole. Per Capita Income of India is an important measure of its development. It is an indicator of the standard of living in the country. Per Capita Income of India forms the basis of policymaking in various sectors of the economy.
Per Capita Income is determined by dividing National Income by the total population of India. The National Income of India is sum total of the monetary value of goods and services that are produced in India within a period of one year.

24. According to the data released by the Government of India in March 2011 which State/Union Territory recorded highest Per Capita Income during 2009-2010 ? [U.P.P.C.S. (Mains) 2011]

(a) Chandigarh
(b) Delhi
(c) Goa
(d) Maharashtra

Correct Answer: (c) Goa

Solution:According to the data released by the Government of India in March 2011, in the year 2009-10 the maximum Per Capita Income amongst the States/ Union Territories of India was of Goa whereas the least Per Capita Income was recorded in Bihar. As per the RBI's Handbook of Statistics on the Indian Economy, 2022-23, Bihar and Goa has still the lowest and highest PCI, respectively in 2021-22.

Per Capita Income of India is a measure of the average income earned by an individual in India within one year. The Per Capita Income of India is calculated by dividing the National Income of India by its total population. This represents the average annual income and not a measure of an individual's wealth as a whole. Per Capita Income of India is an important measure of its development. It is an indicator of the standard of living in the country. Per Capita Income of India forms the basis of policymaking in various sectors of the economy.
Per Capita Income is determined by dividing National Income by the total population of India. The National Income of India is sum total of the monetary value of goods and services that are produced in India within a period of one year.

25. Which of the following States has highest Per Capita Average Income? [R.A.S./R.T.S. (Pre) 1992]

(a) Karnataka
(b) West Bengal
(c) Gujarat
(d) Haryana

Correct Answer: (a) Karnataka

Solution:As per the question period, the Per Capita Income of Haryana was maximum among the given States. Per Capita Income (NSDP Per Capita at current prices) of these States for the year 2021-22 are as follows: Karnataka (Rs. 265623), West Bengal (Rs. 124798), Haryana (Rs. 264835) and Gujarat (Rs. 241930). Hence, as per the latest available data, Karnataka has the highest Per Capita NSDP among the given States.

26. Which of the following States has the highest growth in Gross State Domestic Product in 2010-11 ? [U.P. Lower Sub. (Pre) 2009]

(a) Bihar
(b) Chhattisgarh
(c) Maharashtra
(d) Tamil Nadu

Correct Answer: (a) Bihar

Solution:Among the given States, Bihar had the highest growth in Gross State Domestic Product (GSDP) in 2010-11. As per the data given on MOSPI's website, the rate of growth in Gross State Domestic Product at constant prices (2011-12) in the given States in 2021-22 is as follows: Bihar (8.46%), Tamil Nadu (7.92%), Chhattisgarh (11.71%) and Maharashtra (9.13%). In 2021-22, Manipur has the highest growth (13.51%) in Gross State Domestic Product among all Indian States.

27. Assertion (A) : Economic growth in India has generally remained stagnant for the last ten years. [U.P.P.C.S. (Pre) 2001]

Reason (R) : Food grains production has not increased for last several years.

Choose the correct answer using the codes given below :

Code :

(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true but (R) is not the correct explanation of (A)
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true
(e) Both (A) and (R) is false

Correct Answer: (e) Both (A) and (R) is false

Solution:In the first half of the decade of 1990 (till 1996-97), the Indian Economy showed an effective growth whereas in the following years of that decade, growth rate of the economy fell down a bit. Similarly food production which was at 176.4 million tonnes in the year 1990-91, increased to 212.9 million tonnes in the year 2001-02. Thus the above Assertion and Reason both are incorrect. In the context of past two decades (2000-2010 and 2010-2020), Assertion and Reason both are also incorrect because the growth rate of GDP has been fluctuating whereas the food grain production has been continuously increasing (except in some years ).

28. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). [U.P.S.C (Pre) 1996]

Assertion (A): Though India's National Income has gone up several fold since 1947, there has been no marked improvement in the Per Capita Income level.

Reason (R): Sizeable proportion of the population of India is still living below the poverty line.

In the context of the above two statements which one of the following is correct?

(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true but (R) is not a correct explanation of (A)
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true

Correct Answer: (d) (A) is false, but (R) is true

Solution:In the context of present scenario Assertion (A) is true whereas Reason (R) is false.

The government's claim of a 5% poverty rate is based on the Household Consumption Expenditure Survey (HCES) data, while studies using the Rangarajan Committee methodology suggest a much higher poverty rate. The different methodologies used to calculate poverty lines (e.g., Tendulkar Committee, Rangarajan Committee) can lead to significant variations in the reported poverty rates.
Despite progress in reducing poverty, a substantial number of people in India still face challenges due to low income, inadequate access to basic services, and limited opportunities. Some reports also consider multidimensional poverty, which includes factors like health, education, and living standards, and this can provide a more comprehensive picture of poverty in India.

29. In India, rural incomes are generally lower than the urban incomes. Which of the following reasons account for this? [U.P.S.C (Pre) 1996]

1. A large number of farmers are illiterate and know little about scientific agriculture.

2. Price of primary products are lower than those of manufactured products.

3. Investment in agriculture has been low when compared to investment in industry.

Select the correct answer by using the codes given below :

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

Correct Answer: (a) 1, 2 and 3

Solution:As per the Census 2011, approximately 69% population of India resides in villages and their main occupation is agriculture. Low income generation from agriculture is the result of the combined effect of the reasons mentioned above in the given three statements and that is why rural incomes are comparatively lower than the urban incomes.

30. With reference to the 'Capital formation' which of the statements is/are correct ? [U.P.P.C.S. (Pre) 2021]

1. Process of capital formation depends on savings and effectiveness of financial institutions,

2. Investment is the essential factor of capital formation.

Select the correct answer using the codes given below.

Codes :

(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2

Correct Answer: (c) Both 1 and 2

Solution:Capital formation is a term used to describe the net capital accumulation during an accounting period for a particular country. To accumulate additional capital, a country needs to generate savings and investments from household say- ings or based on government policy. Countries with a high rate of household savings can accumulate funds to produce capital goods faster, and a government that runs a surplus can invest the surplus in capital goods.

The World Bank measures capital formation by assessing the change in net savings. If the household savings rate is increasing, savers may invest the additional money and purchase stocks and bonds. If more households are saving and financial institutions are effective, the country may report a cash surplus, which is a positive sign for capital formation. Hence, both of the given statements are correct.

National Income & Gross Domestic Product (Part – II)

21. The latest Per Capita Income at current prices is lowest for the Indian State of : [B.P.S.C (Pre) 2017]

22. Which State has minimum Per Capita Annual Income ? [U.P.P.C.S. (Pre) 1993, U.P.P.C.S. (Pre) 2008, U.P. Lower Sub. (Pre) 2004]

23. Which of the following States has the highest Per Capita Income (at present) ? [U.P.P.C.S. (Pre) 1994]

24. According to the data released by the Government of India in March 2011 which State/Union Territory recorded highest Per Capita Income during 2009-2010 ? [U.P.P.C.S. (Mains) 2011]

25. Which of the following States has highest Per Capita Average Income? [R.A.S./R.T.S. (Pre) 1992]

26. Which of the following States has the highest growth in Gross State Domestic Product in 2010-11 ? [U.P. Lower Sub. (Pre) 2009]

27. Assertion (A) : Economic growth in India has generally remained stagnant for the last ten years. [U.P.P.C.S. (Pre) 2001]

28. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). [U.P.S.C (Pre) 1996]

29. In India, rural incomes are generally lower than the urban incomes. Which of the following reasons account for this? [U.P.S.C (Pre) 1996]

30. With reference to the 'Capital formation' which of the statements is/are correct ? [U.P.P.C.S. (Pre) 2021]

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