Types of GDP CDS Questions

CDS Economy

Types of GDP MCQ Questions


1.
Which of the following best defines Nominal GDP?
A.
The value of GDP after deducting depreciation of capital
B.
GDP measured exclusively at factor cost without indirect taxes
C.
The market value of all final goods and services produced within a country, measured at current-year prices
D.
The market value of all final goods and services produced within a country, measured at base-year (constant) prices
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ANSWER :
C. The market value of all final goods and services produced within a country, measured at current-year prices
2.
Real GDP is also commonly referred to as:
A.
GDP at constant prices
B.
GDP at market prices
C.
Potential GDP
D.
GDP at current prices
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ANSWER :
A. GDP at constant prices
3.
The primary reason Real GDP is preferred over Nominal GDP for comparing economic performance across years is that Real GDP:
A.
Counts intermediate goods to give a fuller picture of activity
B.
Includes the effect of inflation and is therefore always larger
C.
Adds net factor income from abroad to domestic output
D.
Removes the effect of price changes and reflects only changes in the physical quantity of output
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ANSWER :
D. Removes the effect of price changes and reflects only changes in the physical quantity of output
4.
In the chosen base year, the relationship between Nominal GDP and Real GDP is:
A.
Real GDP is always greater than Nominal GDP
B.
Nominal GDP is always greater than Real GDP
C.
There is no fixed relationship between them
D.
Nominal GDP equals Real GDP
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ANSWER :
D. Nominal GDP equals Real GDP
5.
The ratio of Nominal GDP to Real GDP, multiplied by 100, is known as the:
A.
Consumer Price Index
B.
Wholesale Price Index
C.
Index of Industrial Production
D.
GDP deflator
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ANSWER :
D. GDP deflator
6.
If Nominal GDP of a country is ₹600 lakh crore and Real GDP is ₹500 lakh crore, the GDP deflator is:
A.
100
B.
120
C.
1.2
D.
83.3
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ANSWER :
B. 120