Which of the following best indicates the economic growth of a Nation?
(a) Agriculture income
(b) Per capita income
(c) Gross industrial production
(d) Inflation
Solution: (b)
Some economists believe that economic growth is meaningless if it is not distributed across different segments of population. So per capita income is considered by some as a better indicator of economic growth since it measures the average income earned per person in countryin a specified year. It serves as an indicator of a country’s living standards and how wealth or income is distributed across the population. However, to a vast majority Gross Domestic Product (GDP) is the most comprehensive measure of overall economic performance.
Liberalism stands for
(a) religious orthodoxy
(b) a movement and an attitude
(c) self-emancipation
(d) freedom in social, political, and economic aspects
Solution: (d)
Liberalism includes a broad spectrum of political philosophies that consider individual liberty to be the most important political goal, and emphasize individual rights and equality of opportunity. It supports market economy and a transparent and democratic system of government. The same applies to social and religious aspects as well.
Gross National Product – Depreciation Allowance =?
(a) Per Capita Income
(b) Gross Domestic Product
(c) Personal Income
(d) Net National Product
Solution: (d)
Net National product (NNP) is Gross National Product minus a depreciation allowance for the wearing out of machines and buildings during the period. In other words, NNP= Gross National Product – Depreciation Allowance. Since NNP counts only the net additions to the nation’s stock, it is less than GNP.
The hypothesis that rapid growth of per capita income will be associated with a reduction in poverty is called
(a) trickle down Hypothesis
(b) trickle up hypothesis
(c) U shaped hypothesis
(d) poverty estimation hypothesis
Solution: (a)
According to the trickle down hypothesis the rap id growth of per capita income will be associated with a reduction in poverty. In India, this hypothesis has been interpreted to suggest that with growth in agriculture output without radical institution reform will reduce the incidence of poverty in the context of agricultural development in India.
