The Daily Current Affairs Quiz questions are based on various national and regional newspapers, including government news sources.
The questions are framed on happenings around you to enhance your competitiveness for news based concepts and facts.
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Question 1 of 5
1. Question
The visit of foreigners in India to see the various places/events in the country, amounts to which of the following in terms of economy:
Correct
(d) Export
Explanation:
• Exports means produced within the country and sold to foreigners (or non-residents). If a foreigner is coming to India and then purchasing goods and services, then it is a case of exports.
• In the same way, if a foreigner is coming to India for medical treatment or tourism then the foreigner is basically purchasing medical and tourism services produced in our country.
• So, the best possible answer is exports.
Incorrect
(d) Export
Explanation:
• Exports means produced within the country and sold to foreigners (or non-residents). If a foreigner is coming to India and then purchasing goods and services, then it is a case of exports.
• In the same way, if a foreigner is coming to India for medical treatment or tourism then the foreigner is basically purchasing medical and tourism services produced in our country.
• So, the best possible answer is exports.
Question 2 of 5
2. Question
Consider the following statements
1. Capital goods are final goods and are not used as an input
2. Intermediate goods are those which have been produced but should be further transformed before it can be used for any purpose
Select the correct answer using the code given below:
Correct
(b) 2 only
Explanation:
• Intermediate goods are semi-finished goods which have been produced by a process but cannot be used as it is and need to go through further production/transformation process to be converted into a final good. For example, steel sheets. The steel sheets cannot be used as it is and needs to be transformed into final products like automobiles, appliances etc. So (ii) statement is true.
• A particular good will be capital in nature only if it possesses the following three characteristics:
• It is a produced durable output of a man-made process
• It again acts as an input for further production process (to be sold in the market)
• While acting as an input, it does not get transformed or consumed (hence it’s a final good)
Incorrect
(b) 2 only
Explanation:
• Intermediate goods are semi-finished goods which have been produced by a process but cannot be used as it is and need to go through further production/transformation process to be converted into a final good. For example, steel sheets. The steel sheets cannot be used as it is and needs to be transformed into final products like automobiles, appliances etc. So (ii) statement is true.
• A particular good will be capital in nature only if it possesses the following three characteristics:
• It is a produced durable output of a man-made process
• It again acts as an input for further production process (to be sold in the market)
• While acting as an input, it does not get transformed or consumed (hence it’s a final good)
Question 3 of 5
3. Question
If a country is experiencing recession, then which of the following shall be true:
Correct
(a) Decrease in real GDP
Explanation:
• When the “real GDP” decreases or “change in real GDP” is negative then it is a case of recession.
• If the nominal GDP decreases because of decrease in prices, real GDP may increase.
• If the growth rate is decreasing, GDP may increase.
Incorrect
(a) Decrease in real GDP
Explanation:
• When the “real GDP” decreases or “change in real GDP” is negative then it is a case of recession.
• If the nominal GDP decreases because of decrease in prices, real GDP may increase.
• If the growth rate is decreasing, GDP may increase.
Question 4 of 5
4. Question
Which of the following statements are true regarding Gross National Income?
1. It is the income earned by a country’s Residents
2. It is the income earned by a country’s residents and non-residents both
3. It is calculated at market price by NSO
4. It is equal to GDP plus exports minus imports
Select the correct answer using the code given below:
Correct
Explanation:
• Gross National Income (GNI) is the income earned by Indian residents only whether in India or abroad. (If an Indian has gone abroad for less than 6 months then also, he is an Indian resident only). GNI does not include the income earned by Non-Resident Indians (NRIs). And it is equal to GDP plus net factor income from abroad (NFIA).
• GNI = GNP = GDP + NFIA
Incorrect
Explanation:
• Gross National Income (GNI) is the income earned by Indian residents only whether in India or abroad. (If an Indian has gone abroad for less than 6 months then also, he is an Indian resident only). GNI does not include the income earned by Non-Resident Indians (NRIs). And it is equal to GDP plus net factor income from abroad (NFIA).
• GNI = GNP = GDP + NFIA
Question 5 of 5
5. Question
Which of the following statements could be true for a high savings economy?
1. Higher investment
2. Higher consumption
3. Higher exports
Select the correct answer using the code given below:
Correct
(b) 1 & 3 only
Explanation:
• “Exports must form an integral part of the investment led growth model because higher savings preclude/prevents domestic consumption as the driver of final demand”.
Incorrect
(b) 1 & 3 only
Explanation:
• “Exports must form an integral part of the investment led growth model because higher savings preclude/prevents domestic consumption as the driver of final demand”.
