Which of the following is a component of Gross National Product? MCQ with Answer and Explanation

Which of the following is a component of Gross National Product?
A. GDP minus depreciation
B. GDP minus net factor income from abroad
C. GDP plus net factor income from abroad
D. NDP plus depreciation
Answer: Option C
Solution (By JKSSB Mock Tests)
GNP = GDP + Net factor income from abroad. Net factor income from abroad is the difference between factor income received from abroad and factor income paid to abroad.

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Practice More Economy Set 1 Questions

Question #1
In the context of elasticity, if income elasticity of demand for a good is negative, the good is:
A. Inferior good
B. Necessary good
C. Normal good
D. Luxury good

Correct Answer: Option A


Explanation:
A negative income elasticity of demand indicates that the good is inferior; demand for it falls as income rises.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Foreign Direct Investment' limit in defence sector was increased to what percentage through the automatic route?
A. 49%
B. 100%
C. 26%
D. 74%

Correct Answer: Option D


Explanation:
FDI in defence under automatic route is allowed up to 74%, with higher under government route.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Goods and Services Tax' on event management services is:
A. 5%
B. 18%
C. 12%
D. 28%

Correct Answer: Option B


Explanation:
Event management services attract 18% GST.

This question belongs to: Economy GK Economy Set 1