The 'Gross Value Added' at basic prices excludes: MCQ with Answer and Explanation

Question

Share Report Error

The 'Gross Value Added' at basic prices excludes:

A. all taxes

B. net factor income from abroad

C. indirect taxes net of subsidies

D. depreciation

Answer: Option C

Solution (By JKSSB Mock Tests)

GVA at basic prices is measured before net product taxes, so it excludes net indirect taxes.

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

The concept of 'Break-even Analysis' is used to determine:

A. The level of output at which marginal cost is minimum

B. The level of output at which profit is maximised

C. The level of output at which total revenue equals total cost

D. The level of output at which average cost is maximum

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option C

Explanation:
Break-even analysis identifies the output level at which total revenue equals total cost, so that the firm makes neither profit nor loss.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' rate on postal services is:

A. 0%

B. 5%

C. 18%

D. 12%

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option A

Explanation:
Postal services by the Department of Posts are exempt from GST.

This question belongs to: Economy GK Economy Set 1

Question #3

In the Mundell-Fleming model under perfect capital mobility and floating exchange rates, monetary policy is:

A. Highly effective in influencing output

B. Effective only in the long run

C. Completely neutral

D. Ineffective in influencing output

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option A

Explanation:
Under perfect capital mobility and floating exchange rates, an expansionary monetary policy lowers interest rates, causes capital outflow and currency depreciation, which boosts net exports and output, making monetary policy highly effective.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs