Macro

National Income

Easy

Nation X produces two goods; rice and cloth. A consumer buys 100 kg of rice and 10 pieces of cloth in a year. Suppose, in the year 2000, the price of rice was Rs 10/kg and a piece of cloth was Rs 100. Now suppose the prices of a kg rice and a piece of cloth have gone up to Rs 18 and Rs 120 in the year 2005. In the given example, the Consumer Price Index of the current year vis-a-vis the base year will be equal to ________.

125

66.66

150

200

✅ Correct Option: 3

CPI $= \frac{\text{Cost of basket at current prices}}{\text{Cost of basket at base prices}} \times 100$ . Base year cost $= 100 \times 10 + 10 \times 100 = 2000$ . Current year cost $= 100 \times 18 + 10 \times 120 = 3000$ . CPI $= \frac{3000}{2000} \times 100 = 150$ .

2025: 26 May Shift 2

Which of the following statements is true?

(A) Gross domestic income is a subset of national income.

(B) Corporate profit tax is a factor in income earned by the government.

(C) The production of wheat by a farmer retained by himself for his self-consumption will be included in the national income of the country.

(D) All capital goods are producer goods, but all producer goods are not necessarily capital goods.

Choose the correct answer from the options given below:

2022: 15 July Shift 2

Identify the correct statements about the externalities as a limitation of GDP and welfare.

A. GDP as measured does not include external production of goods.

B. Inverse relationship between negative externality and welfare.

C. No relation between GDP and welfare.

D. Economic activities have both positive and negative externalities.

E. Producers are rewarded with profit for positive externalities

Choose the correct answer from the options given below :

2026: 31 May Shift 1

The price at which goods are traded in bulk are known as:

2026: 19 May Shift 2

Which one of the following statements is NOT correct regarding investment?

2025: 31 May Shift 1

Which of the following constitutes as 'leakages' from the circular flow of income.

(A) Domestic Savings.

(B) Imports.

(D) Investment.

Choose the correct answer from the options given below:

(A), (B) and (C) only
(A), (B), (C) and (D)
(B), (C) and (D) only
(A), (B) and (D) only

2023: 1 June Shift 1

To find Gross value added, arrange the following in sequence :

(A) Import

(B) Export

(D) Domestic purchase of Raw material

(E) Change in inventories

Choose the correct answer from the options given below :

Solution

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