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1. The most appropriate measure of a country’s economic growth is its:

a) Net National Product        b) Per Capita Real Income

c) Net Domestic Product      d) Gross Domestic Product

Ans: B


2. Which one of the following is the correct sequence in the decreasing order of contribution of different sources to the Gross Domestic Product of India?

a) Service – Industry – Agriculture

b) Service – Agriculture – Industry

c) Industry – Service – Agriculture

d) Industry – Agriculture – Service

Ans: A


3. The economy in which products and services are direct results of their beliefs, customs,   traditions, religions is

a) Traditional Economy       b) Micro Economy 

c) Command Economy      d) Market Economy 

Ans: A


4. Capitalism is the economic system based on _____.

a) Private ownership                    b) Public ownership

c) Public and private ownership   d) None of the above

Ans: A


5. A form of socialism called communism sprang up based on the writings of_____.

a) Plato          b) Amartya sen

c) Karl Marx and Friedrich Engels   d) Dadabhai Naoroji

Ans: C


6. The United Nations defines an underdeveloped country as one which has real per capita income lower than per capita income of_____.

a) USA, Canada, Australia, and Western Europe      b) China, Russia, and USA

c) USA, India, China and Australia                            d) Canada, Western Europe

Ans: A

7. Consider the following statements:

1. National income is a flow, not a stock.

2. National wealth measures the stock of commodities held by the nationals of a country at a point in time.

3. National Income measures the productive power of an economy in a given period to turn out goods and services for final consumption.

Which of the above statements is/are correct?

a) 2 and 3        b) 1 and 3        c) 1 only      d) All of the above. 

Ans: D

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