The value added method of measuring national income is primarily used to: MCQ with Answer and Explanation

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The value added method of measuring national income is primarily used to:

A. avoid double counting

B. measure informal sector output

C. include transfer payments

D. estimate depreciation

Answer: Option A

Solution (By JKSSB Mock Tests)

The value added method avoids double counting by measuring only the addition to value at each stage of production.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'Covered Interest Parity' condition uses which instrument to eliminate exchange rate risk?

A. stock option

B. forward contract

C. currency swap

D. credit default swap

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Correct Answer: Option B

Explanation:
Covered interest parity involves a forward contract to hedge exchange rate risk.

This question belongs to: Economy GK Economy Set 1

Question #2

The concept of 'Invisible Hand' was introduced by:

A. John Maynard Keynes

B. Karl Marx

C. Alfred Marshall

D. Adam Smith

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Correct Answer: Option D

Explanation:
Adam Smith in 'The Wealth of Nations' introduced the concept of the invisible hand, suggesting that individuals pursuing their self-interest unintentionally promote the social good.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Chief Executive Officer' of NITI Aayog is appointed by:

A. Finance Minister

B. President

C. Prime Minister

D. Parliament

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Correct Answer: Option C

Explanation:
The CEO of NITI Aayog is appointed by the Prime Minister.

This question belongs to: Economy GK Economy Set 1

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