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Basic Concepts, Sectors, GDP and National Income – GK Quiz with Answers – Level 3

Practise hard Indian Economy questions on GDP deflator calculations, net factor income from abroad, value added, sectors of the economy and disguised versus seasonal unemployment.

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Questions, answer key and solutions.

Questions
50
Duration
35 min
Marks
50

Negative marking

Attempts
100
Access
Free
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Normal practice, or a Simulated test

Both use the same questions. Normal practice is untimed and needs no account: choose an option and the answer and solution appear at once. The Simulated test is the real computer-based format, with one 35-minute clock, a question palette and full screen, and your score, the key and the solutions arrive when you submit.

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How the two modes differ
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Normal

Untimed

Every question on one page, loading as you scroll. Choose an option and see straight away whether it was right.

  • No timer. Nothing to start and nothing to submit. Stop whenever you like.
  • Answered as you choose. Tap an option and it is marked at once, with the correct answer shown.
  • Solutions in place. The explanation, and the video where one has been added, sit under the question.
  • Open to guests. Normal practice needs no sign-in.
Real exam conditions

Simulated

Timed CBT

The computer-based test format: one clock, a question palette, and a score the moment you submit.

  • A clock that does not pause. 35 minutes from the moment you begin, and the paper is submitted for you when it reaches zero.
  • Question palette. Answered, not answered and marked for review, section by section, as the real interface has it.
  • Full screen, proctored. The test takes over the screen; leaving it three times submits the paper.
  • Answers hidden until you submit. The key, the explanations and your score all arrive together at the end.

About this test

GDP, National Income and Sectors of the Economy: Level 3 GK Practice Quiz

This Level 3 Indian Economy quiz tests how GDP is converted into GNP, NNP and national income, along with value added, the GDP deflator, sectors of the economy and types of unemployment. Most items are statement-based or match-the-list, and some need simple calculations. Aptitude360 gives a worked explanation for every question.

Topics covered in this national income set

  • Sectors of the economy: primary, secondary and tertiary activities, organised and unorganised sectors
  • Final and intermediate goods: avoiding double counting and finding value added
  • National income aggregates: GDP to GNP, NNP at market price and NNP at factor cost
  • Real and nominal GDP: the GDP deflator, CPI and WPI
  • Unemployment: disguised, seasonal and educated unemployment
  • Development measures: per capita income, the World Bank classification and the Human Development Report

Key concepts to revise for GDP and national income

  • GNP is GDP plus net factor income from abroad, so it falls below GDP when foreigners earn more in India than Indians earn abroad.
  • National income is NNP at market price minus indirect taxes plus subsidies.
  • The GDP deflator is nominal GDP divided by real GDP, multiplied by hundred.
  • In disguised unemployment, some workers can be withdrawn with no fall in output.

Revision tips for Indian Economy numericals

  • Write the chain from GDP down to national income and note what is added or subtracted at each step.
  • In value-added questions, either count only final goods or add the value added at each stage, never both.
  • Check whether an income is earned within the country or by its residents.

Who should take this Level 3 economy quiz

General Awareness aspirants who have covered the basics of national income and want harder statement-based and numerical practice.

FAQs about Basic Concepts, Sectors, GDP and National Income – GK Quiz with Answers – Level 3

What is the difference between GDP and GNP?
GDP is the value of final goods and services produced within a country's borders. GNP adds net factor income from abroad, so it measures the output of a country's residents wherever they work.
How is national income calculated from GDP?
Add net factor income from abroad to GDP to get GNP, then subtract depreciation to get NNP at market price. Finally subtract indirect taxes and add subsidies to get NNP at factor cost, which is national income.
What is the GDP deflator?
The GDP deflator is nominal GDP divided by real GDP, multiplied by hundred. It shows how much of the change in GDP comes from prices rather than output.
What is disguised unemployment?
Disguised unemployment is when more people work on a task than are actually needed. Some of them can be removed without any fall in production, which is common on family farms.

Test structure

How the paper is split, and how long each part runs. A section you have finished cannot be returned to.

SectionQuestionsTime
Basic Concepts, Sectors, GDP and National Income GK Level 35035 min

Marking & rules

Total marks
50 across 50 questions.
Negative marking
A wrong answer costs marks. Leaving a question unanswered costs nothing.
Attempts
100 in total. An attempt is spent the moment you begin one.

What you get when you submit

The analysis is ready the moment you submit the paper.

Score and accuracy

Marks, percentage, right, wrong and skipped, and the time you took.

Section by section

The same figures for each section, so a weak one cannot hide in an average.

The full answer key

Every question with your answer, the right one, the working, and the video where there is one.

Where you stand

Your score against the spread of everyone else who has sat this test.

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