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All questions of Introduction for BPSC (Bihar) Exam
Which method is usually used for calculating the purchasing power parity by the IMF?
- a)Gross Domestic Product
- b)Net domestic product
- c)Net National Product
- d)Gross National Product
Correct answer is option 'A'. Can you explain this answer?
Which method is usually used for calculating the purchasing power parity by the IMF?
a)
Gross Domestic Product
b)
Net domestic product
c)
Net National Product
d)
Gross National Product
|
Deepa Iyer answered |
- GNP is the 'national income' according to which the IMF ranks the nations of the world in terms of the volumes—at purchasing power parity (PPP).
- India is ranked as the 3rd largest economy of the world (after China and the USA), while as per the nominal/ prevailing exchange rate of the rupee, India is the 7th largest economy (IMF, April 2016). Now such comparisons are done using the GDP, too.
Consider the following statements:1. The Market Economy, as discussed by Adam Smith, operates primarily through government regulations.2. In a Socialist model, the state controls natural resources but not labor.3. The Non-Market Economy is also known as a command economy or centrally planned economy.Which of the statements given above is/are correct?- a)1 Only
- b)1 and 2 Only
- c)2 and 3 Only
- d)3 Only
Correct answer is option 'D'. Can you explain this answer?
Consider the following statements:
1. The Market Economy, as discussed by Adam Smith, operates primarily through government regulations.
2. In a Socialist model, the state controls natural resources but not labor.
3. The Non-Market Economy is also known as a command economy or centrally planned economy.
Which of the statements given above is/are correct?
a)
1 Only
b)
1 and 2 Only
c)
2 and 3 Only
d)
3 Only
|
Mrinalini Patel answered |
Explanation:
1. The Market Economy:
- The Market Economy, as discussed by Adam Smith, operates primarily through the mechanism of supply and demand, with minimal government intervention.
- Adam Smith, known as the father of modern economics, believed that individuals pursuing their self-interest in a competitive market would lead to the best outcomes for society.
2. Socialist Model:
- In a Socialist model, the state does control natural resources, as they are considered the property of the people.
- However, in a Socialist system, labor is not necessarily controlled by the state. Instead, the emphasis is on collective ownership and decision-making.
3. Non-Market Economy:
- The Non-Market Economy, also known as a command economy or centrally planned economy, is characterized by government control over the allocation of resources and production decisions.
- In this type of economy, the government determines what goods and services are produced, how they are produced, and for whom they are produced.
Therefore, out of the given statements:
- Statement 1 is incorrect as the Market Economy operates primarily through free market mechanisms without significant government regulations.
- Statement 2 is incorrect as in a Socialist model, the state does control labor to some extent, along with natural resources.
- Statement 3 is correct as the Non-Market Economy is indeed known as a command economy or centrally planned economy.
Thus, the correct answer is option 'D' - 3 Only.
1. The Market Economy:
- The Market Economy, as discussed by Adam Smith, operates primarily through the mechanism of supply and demand, with minimal government intervention.
- Adam Smith, known as the father of modern economics, believed that individuals pursuing their self-interest in a competitive market would lead to the best outcomes for society.
2. Socialist Model:
- In a Socialist model, the state does control natural resources, as they are considered the property of the people.
- However, in a Socialist system, labor is not necessarily controlled by the state. Instead, the emphasis is on collective ownership and decision-making.
3. Non-Market Economy:
- The Non-Market Economy, also known as a command economy or centrally planned economy, is characterized by government control over the allocation of resources and production decisions.
- In this type of economy, the government determines what goods and services are produced, how they are produced, and for whom they are produced.
Therefore, out of the given statements:
- Statement 1 is incorrect as the Market Economy operates primarily through free market mechanisms without significant government regulations.
- Statement 2 is incorrect as in a Socialist model, the state does control labor to some extent, along with natural resources.
- Statement 3 is correct as the Non-Market Economy is indeed known as a command economy or centrally planned economy.
Thus, the correct answer is option 'D' - 3 Only.
Consider the following pairs:1. Gross Domestic Product (GDP): Total value of all final goods and services produced within a nation's boundaries during a one-year period.2. Net Domestic Product (NDP): GDP minus income from abroad.3. Gross National Product (GNP): GDP adjusted for depreciation.4. Net National Product (NNP): GNP minus depreciation.How many pairs given above are correctly matched?- a)Only two pair
- b)Only one pairs
- c)Only three pairs
- d)All four pairs
Correct answer is option 'A'. Can you explain this answer?
Consider the following pairs:
1. Gross Domestic Product (GDP): Total value of all final goods and services produced within a nation's boundaries during a one-year period.
2. Net Domestic Product (NDP): GDP minus income from abroad.
3. Gross National Product (GNP): GDP adjusted for depreciation.
4. Net National Product (NNP): GNP minus depreciation.
How many pairs given above are correctly matched?
a)
Only two pair
b)
Only one pairs
c)
Only three pairs
d)
All four pairs
|
Arshiya Gupta answered |
Understanding Economic Indicators
When analyzing the definitions of GDP, NDP, GNP, and NNP, it's essential to clarify each term and identify the inaccuracies in the pairs presented.
1. Gross Domestic Product (GDP)
- Correctly defined as the total value of all final goods and services produced within a nation’s boundaries during a specific period, typically one year.
2. Net Domestic Product (NDP)
- Incorrectly described. NDP is actually GDP minus depreciation (not income from abroad). It accounts for the loss of value of capital goods over time.
3. Gross National Product (GNP)
- Incorrectly defined. GNP is the total value of goods and services produced by a nation's residents, regardless of the location, and is not adjusted for depreciation.
4. Net National Product (NNP)
- Correctly defined as GNP minus depreciation. This measure reflects the value of a nation's production after accounting for the wear and tear on capital goods.
Summary of Correctness
- Only pairs 1 (GDP) and 4 (NNP) are correct. Therefore, only two pairs are correctly matched.
Conclusion
- The correct answer is option 'A': Only two pairs are accurately matched. Understanding these economic indicators is crucial for analyzing a nation's economic performance.
When analyzing the definitions of GDP, NDP, GNP, and NNP, it's essential to clarify each term and identify the inaccuracies in the pairs presented.
1. Gross Domestic Product (GDP)
- Correctly defined as the total value of all final goods and services produced within a nation’s boundaries during a specific period, typically one year.
2. Net Domestic Product (NDP)
- Incorrectly described. NDP is actually GDP minus depreciation (not income from abroad). It accounts for the loss of value of capital goods over time.
3. Gross National Product (GNP)
- Incorrectly defined. GNP is the total value of goods and services produced by a nation's residents, regardless of the location, and is not adjusted for depreciation.
4. Net National Product (NNP)
- Correctly defined as GNP minus depreciation. This measure reflects the value of a nation's production after accounting for the wear and tear on capital goods.
Summary of Correctness
- Only pairs 1 (GDP) and 4 (NNP) are correct. Therefore, only two pairs are correctly matched.
Conclusion
- The correct answer is option 'A': Only two pairs are accurately matched. Understanding these economic indicators is crucial for analyzing a nation's economic performance.
Consider the following statements:Statement-I:
External Grants in recent times indicate that India has been a net giver rather than a receiver, showcasing its increased participation in international economic diplomacy.Statement-II:
India's GNP is consistently lower than GDP due to the negative balance in Income from Abroad, reflecting the nation's dependence on global markets.Which one of the following is correct in respect of the above statements?- a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
- b)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
- c)Statement-I is correct, but Statement-II is incorrect
- d)Statement-I is incorrect, but Statement-II is correct
Correct answer is option 'C'. Can you explain this answer?
Consider the following statements:
Statement-I:
External Grants in recent times indicate that India has been a net giver rather than a receiver, showcasing its increased participation in international economic diplomacy.
External Grants in recent times indicate that India has been a net giver rather than a receiver, showcasing its increased participation in international economic diplomacy.
Statement-II:
India's GNP is consistently lower than GDP due to the negative balance in Income from Abroad, reflecting the nation's dependence on global markets.
India's GNP is consistently lower than GDP due to the negative balance in Income from Abroad, reflecting the nation's dependence on global markets.
Which one of the following is correct in respect of the above statements?
a)
Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
b)
Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
c)
Statement-I is correct, but Statement-II is incorrect
d)
Statement-I is incorrect, but Statement-II is correct
|
Prashanth Malik answered |
Analysis of Statement-I
- Statement-I suggests that India has become a net giver in external grants, indicating a shift in its role in international economic diplomacy.
- This statement is correct as India has indeed increased its contributions to global development initiatives and has been actively participating in various international forums.
Analysis of Statement-II
- Statement-II asserts that India's GNP is consistently lower than its GDP due to a negative balance in income from abroad.
- This statement is also correct; GNP (Gross National Product) measures the economic output of residents, including income earned abroad, while GDP (Gross Domestic Product) measures output within the country.
- A negative balance in income from abroad implies that India is paying more to foreign entities than it is earning from them, which leads to GNP being lower than GDP.
Relation Between Statements
- Although both statements are correct, Statement-II does not explain Statement-I.
- The first statement focuses on India’s role in international economic diplomacy and its contributions, while the second addresses the economic metrics of GNP and GDP, which are not directly related to India's diplomatic activities.
Conclusion
- Therefore, the correct answer is option 'C': Statement-I is correct, but Statement-II is incorrect in explaining Statement-I.
- Statement-I suggests that India has become a net giver in external grants, indicating a shift in its role in international economic diplomacy.
- This statement is correct as India has indeed increased its contributions to global development initiatives and has been actively participating in various international forums.
Analysis of Statement-II
- Statement-II asserts that India's GNP is consistently lower than its GDP due to a negative balance in income from abroad.
- This statement is also correct; GNP (Gross National Product) measures the economic output of residents, including income earned abroad, while GDP (Gross Domestic Product) measures output within the country.
- A negative balance in income from abroad implies that India is paying more to foreign entities than it is earning from them, which leads to GNP being lower than GDP.
Relation Between Statements
- Although both statements are correct, Statement-II does not explain Statement-I.
- The first statement focuses on India’s role in international economic diplomacy and its contributions, while the second addresses the economic metrics of GNP and GDP, which are not directly related to India's diplomatic activities.
Conclusion
- Therefore, the correct answer is option 'C': Statement-I is correct, but Statement-II is incorrect in explaining Statement-I.
What does the Beijing Consensus propose as an alternative to the policies advocated by the Washington Consensus?- a)Constant experimentation and innovation
- b)Reduced state intervention in economies
- c)Imposition of neoliberal policies on nations
- d)Market fundamentalism and globalization
Correct answer is option 'A'. Can you explain this answer?
What does the Beijing Consensus propose as an alternative to the policies advocated by the Washington Consensus?
a)
Constant experimentation and innovation
b)
Reduced state intervention in economies
c)
Imposition of neoliberal policies on nations
d)
Market fundamentalism and globalization
|
K.L Institute answered |
The Beijing Consensus, introduced as an alternative to the Washington Consensus, emphasizes constant experimentation and innovation as one of its core pillars. This approach contrasts with the Washington Consensus's focus on neoliberal policies and market fundamentalism. The Beijing Consensus advocates for gradual reforms, peaceful distributive growth, and selective incorporation of foreign ideas, offering a different perspective on economic development and governance.
Consider the following statements:
1. If the national income is being derived at ‘Factor Cost', the indirect taxes do not need to be deducted from it.
2. In this case, the government does not have to add their income accruing from indirect taxes to the national income.
Which of these statements is/ are correct?
- a)1 Only
- b)Both 1 and 2
- c)2 Only
- d)None of the above
Correct answer is option 'C'. Can you explain this answer?
Consider the following statements:
1. If the national income is being derived at ‘Factor Cost', the indirect taxes do not need to be deducted from it.
2. In this case, the government does not have to add their income accruing from indirect taxes to the national income.
Which of these statements is/ are correct?
a)
1 Only
b)
Both 1 and 2
c)
2 Only
d)
None of the above
|
|
Kajal Chopra answered |
Explanation:
1. Statement 1:
- When national income is calculated at 'Factor Cost', it means that indirect taxes are not included in the calculation.
- Therefore, there is no need to deduct indirect taxes from the national income as they are not a part of it.
2. Statement 2:
- Since the national income is being derived at 'Factor Cost', the government's income from indirect taxes is not added to the national income.
- This is because indirect taxes are not considered as a part of the national income when calculated at 'Factor Cost'.
Therefore, Statement 2 is correct. The government does not have to add their income accruing from indirect taxes to the national income when it is being derived at 'Factor Cost'.
1. Statement 1:
- When national income is calculated at 'Factor Cost', it means that indirect taxes are not included in the calculation.
- Therefore, there is no need to deduct indirect taxes from the national income as they are not a part of it.
2. Statement 2:
- Since the national income is being derived at 'Factor Cost', the government's income from indirect taxes is not added to the national income.
- This is because indirect taxes are not considered as a part of the national income when calculated at 'Factor Cost'.
Therefore, Statement 2 is correct. The government does not have to add their income accruing from indirect taxes to the national income when it is being derived at 'Factor Cost'.
Consider the following statements:Statement-I: India switched to calculating national income at market price in January 2015.Statement-II: The transition to market price calculation was facilitated by GST implementation.Which one of the following is correct in respect of the above statements?- a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
- b)Statement-I is correct, but Statement-II is incorrect
- c)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
- d)Statement-I is incorrect, but Statement-II is correct
Correct answer is option 'B'. Can you explain this answer?
Consider the following statements:
Statement-I: India switched to calculating national income at market price in January 2015.
Statement-II: The transition to market price calculation was facilitated by GST implementation.
Which one of the following is correct in respect of the above statements?
a)
Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
b)
Statement-I is correct, but Statement-II is incorrect
c)
Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
d)
Statement-I is incorrect, but Statement-II is correct
|
|
Saptarshi Majumdar answered |
Understanding the Statements
The question revolves around two statements regarding India's national income calculation methodology and the impact of the Goods and Services Tax (GST).
Statement-I: India switched to calculating national income at market price in January 2015.
- This statement is incorrect.
- India has been using market prices to calculate national income for several years prior to 2015. The shift in methodology in 2015 was more about revising the base year for GDP calculations and adopting a new series based on the 2011-12 base year.
Statement-II: The transition to market price calculation was facilitated by GST implementation.
- This statement is also incorrect in the context provided.
- While the GST, implemented in July 2017, aimed to streamline the taxation system and improve revenue collection, it did not directly facilitate a switch to market price calculation for national income.
Correct Answer Explanation
- Since Statement-I is incorrect, and Statement-II, while partially related to economic reforms, does not accurately explain or relate to the transition mentioned in Statement-I, the correct answer is option B: "Statement-I is correct, but Statement-II is incorrect."
Conclusion
- In summary, the confusion stems from the timing and nature of the calculations. India's national income calculations have been based on market prices long before 2015, and while GST is an important reform, it did not trigger a change in the national income calculation methodology. Therefore, the option stating that Statement-I is correct and Statement-II is incorrect is the most accurate.
The question revolves around two statements regarding India's national income calculation methodology and the impact of the Goods and Services Tax (GST).
Statement-I: India switched to calculating national income at market price in January 2015.
- This statement is incorrect.
- India has been using market prices to calculate national income for several years prior to 2015. The shift in methodology in 2015 was more about revising the base year for GDP calculations and adopting a new series based on the 2011-12 base year.
Statement-II: The transition to market price calculation was facilitated by GST implementation.
- This statement is also incorrect in the context provided.
- While the GST, implemented in July 2017, aimed to streamline the taxation system and improve revenue collection, it did not directly facilitate a switch to market price calculation for national income.
Correct Answer Explanation
- Since Statement-I is incorrect, and Statement-II, while partially related to economic reforms, does not accurately explain or relate to the transition mentioned in Statement-I, the correct answer is option B: "Statement-I is correct, but Statement-II is incorrect."
Conclusion
- In summary, the confusion stems from the timing and nature of the calculations. India's national income calculations have been based on market prices long before 2015, and while GST is an important reform, it did not trigger a change in the national income calculation methodology. Therefore, the option stating that Statement-I is correct and Statement-II is incorrect is the most accurate.
Consider the following pairs:1. GNP Calculation: GDP - Depreciation2. NNP Calculation: GDP + Income from Abroad3. GVA Calculation: GDP + taxes on products – taxes on subsidies4. Market Cost Calculation: Factor cost + Indirect taxesHow many pairs given above are correctly matched?- a)Only one pair
- b)Only two pairs
- c)Only three pairs
- d)All four pairs
Correct answer is option 'A'. Can you explain this answer?
Consider the following pairs:
1. GNP Calculation: GDP - Depreciation
2. NNP Calculation: GDP + Income from Abroad
3. GVA Calculation: GDP + taxes on products – taxes on subsidies
4. Market Cost Calculation: Factor cost + Indirect taxes
How many pairs given above are correctly matched?
a)
Only one pair
b)
Only two pairs
c)
Only three pairs
d)
All four pairs
|
Innovative Classes answered |
1. GNP Calculation: GDP - Depreciation
This is incorrect. The correct formula for GNP is GDP + Income from Abroad. Depreciation is not used in calculating GNP.
This is incorrect. The correct formula for GNP is GDP + Income from Abroad. Depreciation is not used in calculating GNP.
2. NNP Calculation: GDP + Income from Abroad
This is incorrect. NNP is calculated by taking GNP and subtracting depreciation, and GNP itself is GDP + Income from Abroad.
This is incorrect. NNP is calculated by taking GNP and subtracting depreciation, and GNP itself is GDP + Income from Abroad.
3. GVA Calculation: GDP at basic prices + Product taxes - Production subsidies
This is incorrect. GVA is calculated at basic prices, not directly from GDP. It includes product taxes and excludes production subsidies.
This is incorrect. GVA is calculated at basic prices, not directly from GDP. It includes product taxes and excludes production subsidies.
4. Market Cost Calculation: Factor cost + Indirect taxes
This is correct. Market cost is calculated by adding indirect taxes to the factor cost.
This is correct. Market cost is calculated by adding indirect taxes to the factor cost.
Thus, only pair 4 is correctly matched. Hence, the answer is Option A: Only one pair.
Consider the following statements:1. In recent times, India has been more of a giver than a receiver of external grants.2. Net National Product (NNP) is derived by subtracting depreciation from Gross Domestic Product (GDP).3. The Central Statistics Office (CSO) revised the base year for calculating national accounts from 2004-05 to 2011-12 in January 2015.Which of the statements given above is/are correct?- a)1 Only
- b)1 and 2 Only
- c)1 and 3 Only
- d)1, 2 and 3
Correct answer is option 'C'. Can you explain this answer?
Consider the following statements:
1. In recent times, India has been more of a giver than a receiver of external grants.
2. Net National Product (NNP) is derived by subtracting depreciation from Gross Domestic Product (GDP).
3. The Central Statistics Office (CSO) revised the base year for calculating national accounts from 2004-05 to 2011-12 in January 2015.
Which of the statements given above is/are correct?
a)
1 Only
b)
1 and 2 Only
c)
1 and 3 Only
d)
1, 2 and 3
|
|
Prashanth Malik answered |
Analysis of Statements
To determine the correctness of the statements, let’s analyze each one individually.
Statement 1: India as a Giver of External Grants
- In recent years, India has indeed taken on a more significant role in providing grants and aid to other countries, particularly in South Asia and Africa.
- This shift reflects India's growing economic stature and its commitment to enhancing bilateral relations and regional stability.
Thus, Statement 1 is correct.
Statement 2: Net National Product (NNP) Calculation
- NNP is calculated by subtracting depreciation from Gross National Product (GNP), not Gross Domestic Product (GDP).
- GNP accounts for the total value of goods and services produced by a country's residents, regardless of location, while GDP focuses on the production within the country's borders.
Thus, Statement 2 is incorrect.
Statement 3: Revision of Base Year for National Accounts
- The Central Statistics Office (CSO) did revise the base year for calculating national accounts from 2004-05 to 2011-12 in January 2015.
- This revision aimed to provide a more accurate reflection of the economy by incorporating updated data and methodologies.
Thus, Statement 3 is correct.
Conclusion
After analyzing the statements:
- Correct Statements: 1 and 3
- Incorrect Statement: 2
The correct answer is option C (1 and 3 only).
To determine the correctness of the statements, let’s analyze each one individually.
Statement 1: India as a Giver of External Grants
- In recent years, India has indeed taken on a more significant role in providing grants and aid to other countries, particularly in South Asia and Africa.
- This shift reflects India's growing economic stature and its commitment to enhancing bilateral relations and regional stability.
Thus, Statement 1 is correct.
Statement 2: Net National Product (NNP) Calculation
- NNP is calculated by subtracting depreciation from Gross National Product (GNP), not Gross Domestic Product (GDP).
- GNP accounts for the total value of goods and services produced by a country's residents, regardless of location, while GDP focuses on the production within the country's borders.
Thus, Statement 2 is incorrect.
Statement 3: Revision of Base Year for National Accounts
- The Central Statistics Office (CSO) did revise the base year for calculating national accounts from 2004-05 to 2011-12 in January 2015.
- This revision aimed to provide a more accurate reflection of the economy by incorporating updated data and methodologies.
Thus, Statement 3 is correct.
Conclusion
After analyzing the statements:
- Correct Statements: 1 and 3
- Incorrect Statement: 2
The correct answer is option C (1 and 3 only).
Consider the following statements:1. The World Bank recognized the necessity of state intervention in the economy, deviating from its previous stance in support of free market principles.2. By the mid-1980s, non-market economies began to adapt and incorporate elements of market economies.3. France was the first country to officially adopt national planning in the early 1930s, signaling the formal adoption of the mixed economic system.Which of the statements given above is/are correct?- a)1 Only
- b)1 and 2 Only
- c)1 and 3 Only
- d)1, 2 and 3
Correct answer is option 'B'. Can you explain this answer?
Consider the following statements:
1. The World Bank recognized the necessity of state intervention in the economy, deviating from its previous stance in support of free market principles.
2. By the mid-1980s, non-market economies began to adapt and incorporate elements of market economies.
3. France was the first country to officially adopt national planning in the early 1930s, signaling the formal adoption of the mixed economic system.
Which of the statements given above is/are correct?
a)
1 Only
b)
1 and 2 Only
c)
1 and 3 Only
d)
1, 2 and 3
|
EduRev UPSC answered |
Statement 1: Correct. The World Bank acknowledged the necessity of state intervention in the economy, moving away from its earlier support for free market principles. This shift recognized the limitations of a purely market-driven approach and the importance of state involvement in addressing economic issues.
Statement 2: Correct. By the mid-1980s, non-market economies began to integrate elements of market economies, signifying a trend towards the mixed economic system. This adaptation was part of a broader recognition that a blend of market and state mechanisms was necessary for optimal economic performance.
Statement 3: Incorrect. France officially adopted national planning in 1944-45, not the early 1930s. This period marked the formal adoption of the mixed economic system in France, following the disruptions caused by World War II.
Therefore, the correct answer is Option B: 1 and 2 Only.
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