In the context of national income, which of the following is included in both GDP and GNP? MCQ with Answer and Explanation

In the context of national income, which of the following is included in both GDP and GNP?
A. Depreciation only
B. Value of final goods and services produced within the domestic territory
C. Transfer payments
D. Net factor income from abroad
Answer: Option B
Solution (By JKSSB Mock Tests)
The value of final goods and services produced within the domestic territory is the common base for both GDP and GNP. GNP adjusts GDP by adding net factor income from abroad.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is NOT a maturity period for Treasury bills in India?
A. 364 days
B. 182 days
C. 91 days
D. 730 days

Correct Answer: Option D


Explanation:
Treasury bills in India are issued for 91, 182 and 364 days.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Second Five Year Plan' period was:
A. 1961-1966
B. 1953-1958
C. 1956-1961
D. 1951-1956

Correct Answer: Option C


Explanation:
The Second Five Year Plan covered 1956-1961.

This question belongs to: Economy GK Economy Set 1
Question #3
The yield on a bond and its price have an inverse relationship. If market interest rates rise, the price of an existing bond:
A. remains unchanged
B. rises
C. falls
D. becomes zero

Correct Answer: Option C


Explanation:
When market interest rates rise, existing bond prices fall because their fixed coupon becomes less attractive.

This question belongs to: Economy GK Economy Set 1