1. The national income of a country for a given period is equal to the [UPSC CSE 2013]
(a) total value of goods and services produced by the nationals
(b) sum of total consumption and investment expenditure
(c) sum of personal income of all individuals
(d) money value of final goods and services produced
2. The rate at which the consumer is willing to substitute one good for another without changing the level of satisfaction is known as ? [UPSC CAPF 2014]
(a) marginal rate of substitution
(b) marginal rate of technical substitution
(c) diminishing marginal utility
(d) equi-marginal utility
3. Which of the following factors affects individual’s demand for a commodity? [UPSC CAPF 2014]
1. Price of the commodity
2. Income of the consumer
3. Prices of related goods
Select the correct answer using the codes given below.
Code
(a) 1 and 2
(b) 2 and 3
(c) 1, 2 and 3
(d) Only 1
4. If farmers’ loans are waived in India, how will it affect the aggregate demand in the economy?
1. Private consumption impact via increase in private sector net wealth
2. Public sector impact via changes in government expenditure/taxes
3. Crowding-out impact via higher borrowings by State Governments
4. Crowding-in impact via higher credit availability as bank NPAs fall
Select the correct answer using the code given below. [UPSC CAPF 2018]
(a) 1, 2 and 3 only
(b) 1, 2, 3 and 4
(c) 3 and 4 only
(d) 1 and 2 only
5. In National Income (NI) accounts, Personal Income (PI) is defined as ? [UPSC CAPF 2018]
(a) NI – undistributed profits – net interest payments made by households – corporate tax + transfer payments to the households from the government and firms
(b) NI – undistributed profits – corporate tax + transfer payments to the households from the government and firms
(c) undistributed profits – net interest payments made by households + transfer payments to the households from the government and firms
(d) undistributed profits – net interest payments made by households – corporate tax
6. Which one of the following statements is true with regard to an economy which is on its production possibility frontier ? [UPSC CAPF 2019]
(a) The economy has to sacrifice some production of one commodity in order to increase the production of another commodity
(b) There is no limit or constraint for the economy in the production of goods and services
(c) The economy can produce more of one commodity up to a point without reducing the production of any other commodity
(d) Its production possibility frontier is an upward sloping curve