The term 'Base Year' in national income accounting is important because it: MCQ with Answer and Explanation

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The term 'Base Year' in national income accounting is important because it:

A. Fixes the exchange rate

B. Provides the price structure for calculating real GDP

C. Determines the tax rates

D. Determines the fiscal deficit target

Answer: Option B

Solution (By JKSSB Mock Tests)

The base year supplies the constant price weights used to compute real GDP and other volume measures, enabling meaningful comparisons over time.

This question belongs to: Economy GK Economy Set 1

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Human capital formation mainly involves:

A. accumulation of physical capital

B. increase in foreign exchange reserves

C. increase in natural resources

D. investment in education, health and skill development

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Correct Answer: Option D

Explanation:
Human capital formation involves investment in education, health and skills.

This question belongs to: Economy GK Economy Set 1

Question #2

In the context of economic reforms in India, the New Economic Policy of 1991 emphasised:

A. Licence-permit-quota raj

B. Liberalisation, privatisation and globalisation

C. Complete isolation from the world economy

D. Import substitution only

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Correct Answer: Option B

Explanation:
The 1991 economic reforms focused on Liberalisation, Privatisation and Globalisation (LPG) to open up the economy, reduce government control and integrate with the global economy.

This question belongs to: Economy GK Economy Set 1

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The 'Pradhan Mantri Kaushal Vikas Yojana' is implemented by:

A. RBI

B. SEBI

C. NABARD

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Correct Answer: Option D

Explanation:
PMKVY is implemented by the National Skill Development Corporation.

This question belongs to: Economy GK Economy Set 1

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