Q1. Main source of India’s national income is from
(a) Agriculture
(b) Industry
(c) Forestry
(d) None of these
(UPSC Prelims 1982)
Answer: (a)
Explanation: In 1982, agriculture was the primary contributor to India’s national income, employing a majority of the population and forming the backbone of the rural economy.
Q2. In India the computation of national income is often difficult because of
(a) Large population growth
(b) Very low per capita income
(c) Very little domestic savings
(d) Non-cooperation of the private sector
(UPSC Prelims 1983)
Answer: (d) Non-cooperation of the private sector
Explanation: National income estimation in India faces challenges due to lack of reliable data from the private sector, which dominates informal and unorganized economic activities. This non-cooperation leads to incomplete or inaccurate reporting, affecting economic planning.
Q3. Standard of living of a nation can be judged by
(a) Increase in GNP at factor cost
(b) Increase in GNP at cost including taxes and duties
(c) Increase in NNP at factor cost
(d) None of the above
(UPSC Prelims 1986)
Answer: (a) Increase in GNP at factor cost
Explanation: Gross National Product (GNP) at factor cost reflects the total income earned by a nation’s residents, excluding indirect taxes and subsidies. It provides a clearer measure of economic well-being, making it a valid indicator of standard of living.
Q4. National income of India during 1985–86 increased by
(a) 2.5 %
(b) 3.8 %
(c) 5.1 %
(d) 4.2 %
(UPSC Prelims 1987)
Answer: (c) 5.1 %
Explanation: In 1985–86, India’s national income saw a growth of 5.1%, reflecting economic recovery and policy reforms under the Seventh Five-Year Plan, which focused on agriculture, energy, and poverty reduction.