HomeMock TestState PCSRailwaySSCHSSCDSSSBRO/AROUPSC

National Income & Gross Domestic Product

📆 October 1, 2024

Total Questions: 55

41. Who was the chairman of National Income Committee appointed by the Government of India in 1949 ? [U.P.P.C.S. (Mains) 2015]

Correct Answer: (b) P.C. Mahalanobis
Solution:The NIC was formed in August 1949 to develop a scientific basis for compiling national income estimates. Prof. P.C. Mahalanobis served as chairman, and the other members were Prof. D.R. Gadgil and Dr. V.K.R.V. Rao. The committee's first report, prepared in 1951, estimated the total national income of India for the year 1948-49 at Rs. 8,830 crore and the per capita income at Rs. 265 per annum.
The committee continued its estimation work for another three years, and the final report was published in 1954. The Central Statistical Organisation (CSO), which is now part of the National Statistical Office (NSO), continues to compile national income estimates and related statistics, building upon the foundation established by the NIC.

42. The economist who for the first time scientifically determined National Income in India : [B.P.S.C (Pre) 2016]

Correct Answer: (b) V.K.R.V. Rao
Solution:The first attempt to calculate National Income of India was made by Dadabhai Naoroji in 1867-68, while for the first time National Income of India was scientifically determined by Dr. V.K.R.V. Rao in 1931-32.                  National income of a country means the sum total of incomes earned by the citizens of that country during a given period, over a year. National income accounting refers to the set of methods and principles that are used by the government for measuring production and income, or in other words economic activity of a country in a given time period.
The various measures of determining national income are GDP (Gross Domestic Product), GNP (Gross National Product), and NNP (Net National Product) along with other measures such as personal income and disposable income. It should be noted that national income is not the sum of all incomes earned by all citizens, but only those incomes which accrue due to participation in the production process. Individuals participate in the production process by supplying factors of production which they possess.
According to Marshall: "The labour and capital of a country acting on its natural resources produce annually a certain net aggregate of commodities, material and immaterial including services of all kinds. This is the true net annual income or revenue of the country or national dividend." In this definition, the word 'net' refers to deductions from the gross national income in respect of depreciation and wearing out of machines. And to this, must be added income from abroad.
National income accounting equation is an equation that shows the relationship between income and expense of an economy and other categories. It is represented by the following equation:
Y=C+I+G+ (X - M)

43. Which of the following offices or institutes releases data of the National Income in India. ? [U.P.S.C (Pre) (Re-Exam) 2020]

Correct Answer: (e) None of the above
Solution:In India, the estimates of National Income were prepared and released by the erstwhile Central Statistical Office (CSO) which was established in 1951 as the Central Statistical Organisation. At present, data of the National Income in India is estimated and released by the National Statistical Office (NSO), which is formed with the merger of the Central Statistical Office (CSO) and the National Sample Survey Office (NSSO) in 2019.

44. In India National Income is estimated by - [U.P.P.C.S. (Pre) 1995, 2006, U.P.P.C.S. (Mains) 2006, Uttarakhand P.C.S. (Pre) 2010]

Correct Answer: (b) Central Statistical Organisation
Solution:In India, the estimates of National Income were prepared and released by the erstwhile Central Statistical Office (CSO) which was established in 1951 as the Central Statistical Organisation. At present, data of the National Income in India is estimated and released by the National Statistical Office (NSO), which is formed with the merger of the Central Statistical Office (CSO) and the National Sample Survey Office (NSSO) in 2019.

45. The National Income of India is estimated by : [U.P.P.C.S. (Mains) 2012]

Correct Answer: (d) Central Statistical Organisation
Solution:In India, the estimates of National Income were prepared and released by the erstwhile Central Statistical Office (CSO) which was established in 1951 as the Central Statistical Organisation. At present, data of the National Income in India is estimated and released by the National Statistical Office (NSO), which is formed with the merger of the Central Statistical Office (CSO) and the National Sample Survey Office (NSSO) in 2019.

46. In India, National Income is computed by which of the following ? [M.P.P.C.S. (Pre) 2012, U.P.P.C.S. (Pre) 1995, Jharkhand P.C.S. (Pre) 2003, U.P. Lower Sub. (Pre) 2004, U.P.P.C.S. (Mains) 2008, 2010]

Correct Answer: (c) Central Statistical Organisation
Solution:In India, the estimates of National Income were prepared and released by the erstwhile Central Statistical Office (CSO) which was established in 1951 as the Central Statistical Organisation. At present, data of the National Income in India is estimated and released by the National Statistical Office (NSO), which is formed with the merger of the Central Statistical Office (CSO) and the National Sample Survey Office (NSSO) in 2019.

47. In India which agency is entrusted with the collection of data of capital formation ? [U.P. Lower Sub. (Pre) 2008]

Correct Answer: (a) RBI and Central Statistical Organisation
Solution:In India the data of Capital Formation is collected by the Reserve Bank of India and National Statistical Office (erstwhile CSO). K.N. Raj Committee (set up in 1981) on the method of estimation of saving and investment, specified the role of the RBI and the CSO in preparing the estimates of saving and investment. While the RBI was recommended to prepare the estimates for the private corporate business sector and on financial saving (except life insurance, provident and pension funds) of household sector, the estimates for the rest of the institutional sectors and components as well as total domestic saving were to be compiled by the CSO (now NSO).

48. 'Base year' in National Income accounting means : [R.A.S./R.T.S. (Pre) 2021]

Correct Answer: (c) The year whose prices are being used to calculate the real GDP
Solution:'Base year' in National Income accounting means - the year whose prices are being used as reference prices to calculate the real GDP or real National Income. At present, the base year for National Income accounting is 2011-12. For example if goods and services produced during the year 2023-24 are valued at the prices of the base year (i.e. 2011-12), it will be called National Income at constant prices.

49. Indicate the vital change in the measurement of National Income of India recently : [R.A.S./R.T.S. (Pre) (Re - Exam) 2013]

Correct Answer: (a) Both the base year and calculation method have changed.
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.

50. In new GDP data, base year has been changed from 2004-05 to : [U.P.P.C.S. (Mains) 2015]

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.
Home  | Mock Test  | State PCS  | Railway  | SSC  | HSSC  | DSSSB  | RO/ARO  | UPSC  | 
© 2024 Mock Test 365 | All Rights Reserved