Types of GDP CDS Questions

CDS Economy

Types of GDP MCQ Questions


13.
If Nominal GDP grows at 11% while the GDP deflator (inflation) is 7%, the approximate growth rate of Real GDP is:
A.
About 11%
B.
About 18%
C.
About 4%
D.
About 7%
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ANSWER :
C. About 4%
14.
Consider an economy producing only wheat. In the base year 100 units were sold at ₹10 each; in the current year 120 units were sold at ₹15 each. The current-year Real GDP (at base-year prices) is:
A.
₹1,500
B.
₹1,000
C.
₹1,200
D.
₹1,800
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ANSWER :
C. ₹1,200
15.
In the same economy (base year: 100 units at ₹10; current year: 120 units at ₹15), the GDP deflator for the current year is:
A.
120
B.
150
C.
83.3
D.
100
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ANSWER :
B. 150
16.
Which one of the following is NOT a feature of Real GDP?
A.
It is measured at constant (base-year) prices
B.
It isolates changes in the volume of production
C.
It facilitates meaningful comparison of output over time
D.
It rises automatically whenever the general price level rises
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ANSWER :
D. It rises automatically whenever the general price level rises
17.
'Per capita real income' is generally considered a better welfare indicator than 'per capita nominal income' because it:
A.
Reflects changes in real purchasing power by adjusting for price changes
B.
Is always a larger number, indicating prosperity
C.
Includes black-money and informal transactions
D.
Ignores population so growth looks faster
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ANSWER :
A. Reflects changes in real purchasing power by adjusting for price changes
18.
The GDP deflator is described as an 'implicit' price index because it is:
A.
Fixed by the central bank before output is measured
B.
Derived as a by-product of comparing nominal and real GDP rather than from a pre-fixed basket
C.
Computed only from imported goods prices
D.
Identical to the wholesale price index by law
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ANSWER :
B. Derived as a by-product of comparing nominal and real GDP rather than from a pre-fixed basket