MCQ for economy-2-25th-october-2022

Consider the following statements:

1. Real GDP is an inflation-adjusted measure for assessing domestic economic production.

2. If inflation is negative, real GDP will be lower than nominal GDP and vice versa.

3. Real GDP provides a better basis for judging long-term national economic performance than Nominal GDP.

Which of the statements given above are correct?

Arrange the following sectors in ascending order in terms of their contribution to India’s GDP in 2020-21:

1. Agriculture, forestry and fishing

2. Mining and quarrying

3. Construction

4. Financial, real estate and professional services

Select the correct answer using the code given below:

Consider the following statements:

1. Currently, India is the third-largest economy in terms of Purchasing Power Parities (PPPs).

2. India accounts for less than 10% of global GDP in terms of Purchasing Power Parities (PPPs).

Which of the statements given above is/are correct?

Which among the following are included under the economic territory of India?

1. Indian ships moving between UK and Pakistan regularly

2. Passenger planes operated by Air India between Russia and Japan

3. India’s territorial waters

4. Embassies, Consulates and military establishments of India located abroad

Select the correct answer using the code given below:

Which among the following are excluded from Gross National Product (GNP) measurements?

1. Sales of used items 

2. Government transfer payments

3. Purchase of stock and bonds

4. Inventory spending by business enterprises

Select the correct answer using the code given below:

Consider the following statements regarding Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII):

1. While FDI’s are short-term investments, the FII’s are long term investments.

2. In comparison to FDI, FIIs can quickly enter and exit the stock market.

3. FDI increases a country’s productivity and thus leads to economic growth, whereas FII results in an increase in the country’s capital.

Which of the statements given above is/are correct?

Consider the following statements regarding RBI Retail Direct scheme:

1. It allows retail investors to buy and sell government securities online in primary and secondary markets.

2. Under the scheme, a retail investor can take a loan against securities available in his/her account.

Which of the statements given above is/are correct?

Consider the following statements regarding the taxability of dividend income:

1. Currently, the dividend received is taxable in the hands of the investor/shareholder.

2. Dividend received from a foreign company is not taxable in India.

Which of the statements given above is/are correct?

“It refers to offer of shares against distributable profit to existing shareholders. The shareholders share in the profit is converted as shares. It is also known as scrip issue or capitalisation issue”. This is the most likely description of

Consider the following statements:

1. In the event of the liquidation of a business, the holders of its bonds have the last claim on any residual cash.

2. While stockholders can vote on specific company issues, bondholders have no voting rights.

Which of the statements given above is/are not correct?