The 'Gross Domestic Product' at market prices equals GVA at basic prices plus: MCQ with Answer and Explanation

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The 'Gross Domestic Product' at market prices equals GVA at basic prices plus:

A. depreciation

B. net factor income from abroad

C. product subsidies minus product taxes

D. product taxes minus product subsidies

Answer: Option D

Solution (By JKSSB Mock Tests)

GDP at market prices = GVA at basic prices + product taxes - product subsidies.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'Goods and Services Tax' on renting of commercial property is:

A. 5%

B. 12%

C. 28%

D. 18%

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Correct Answer: Option D

Explanation:
Renting of commercial property attracts 18% GST.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Rashtriya Krishi Vikas Yojana' aims at:

A. industrial growth

B. urban housing

C. tourism development

D. agricultural development and infrastructure

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Correct Answer: Option D

Explanation:
RKVY aims at promoting agricultural development and related infrastructure.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a feature of the 'Real Business Cycle' theory?

A. Sticky prices are the main source of fluctuations

B. Business cycles are primarily caused by monetary shocks

C. Business cycles are primarily driven by real shocks, especially technology shocks

D. Fiscal policy is the primary driver of cycles

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Correct Answer: Option C

Explanation:
Real Business Cycle theory attributes macroeconomic fluctuations mainly to real shocks, particularly technological disturbances, under the assumption of continuous market clearing and rational expectations.

This question belongs to: Economy GK Economy Set 1

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