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Question (11)

QN0038081

Why are final goods and services used while calculating GDP?

(A) They are always cheaper
(B) Their value already includes the value of intermediate goods used in production
(C) Intermediate goods are never produced
(D) Final goods are always exported

Correct Answer: B

Explanation:

Counting intermediate goods separately would result in double counting because their value is already included in final goods.

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Question (12)

QN0038082

An economy produces final goods worth ₹500 crore in agriculture, ₹700 crore in industry and ₹1,300 crore in services. What is the total GDP represented by these sectors?

(A) ₹1,500 crore
(B) ₹2,000 crore
(C) ₹2,500 crore
(D) ₹3,000 crore

Correct Answer: C

Explanation:

Total GDP = ₹500 crore + ₹700 crore + ₹1,300 crore = ₹2,500 crore.

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Question (13)

QN0038083

An economy has primary-sector production of ₹400 crore, secondary-sector production of ₹600 crore and tertiary-sector production of ₹1,000 crore. What percentage of total production comes from the tertiary sector?

(A) 40%
(B) 50%
(C) 60%
(D) 75%

Correct Answer: B

Explanation:

Total production = ₹2,000 crore. Tertiary share = ₹1,000 ÷ ₹2,000 × 100 = 50%.

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Question (14)

QN0038084

If the value of final goods and services produced within a country in a year is ₹12 lakh crore, the GDP for that year is:

(A) ₹6 lakh crore
(B) ₹10 lakh crore
(C) ₹12 lakh crore
(D) ₹24 lakh crore

Correct Answer: C

Explanation:

GDP measures the total value of final goods and services produced within a country during a particular year.

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Question (15)

QN0038085

Which indicator is particularly useful for comparing the relative contribution of sectors to total production?

(A) Number of villages
(B) GVA
(C) Population density
(D) Literacy rate

Correct Answer: B

Explanation:

Gross Value Added (GVA) is used to measure the value generated by different sectors.

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Question (16)

QN0038086

In 1977–78, the primary sector was the largest producing sector in India, while by 2017–18 the tertiary sector had become the largest. What does this change indicate?

(A) Agriculture completely disappeared
(B) The relative importance of sectors changed over time
(C) Industry stopped producing goods
(D) Services became part of agriculture

Correct Answer: B

Explanation:

Over time, the relative contribution of the three sectors changed, with the tertiary sector becoming the largest producer by 2017–18.

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Question (17)

QN0038087

Production in the industrial sector increased more than nine times between 1977–78 and 2017–18, while employment increased only about three times. Which conclusion follows?

(A) Employment increased faster than production
(B) Production increased much faster than employment
(C) Industrial production declined
(D) Employment became completely zero

Correct Answer: B

Explanation:

The chapter notes that industrial output increased by more than nine times, whereas employment increased by around three times.

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Question (18)

QN0038088

Service-sector production increased around 14 times during the period discussed, while service-sector employment increased around five times. What does this suggest?

(A) Employment grew faster than production
(B) Production grew considerably faster than employment
(C) Services stopped expanding
(D) Service-sector workers disappeared

Correct Answer: B

Explanation:

The rise in production was much greater than the rise in employment, showing that production growth did not create jobs at the same rate.

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Question (19)

QN0038089

A country's tertiary sector contributes 55% of GVA but employs only 30% of workers. Which conclusion is most appropriate?

(A) The tertiary sector produces relatively more per worker than its employment share suggests
(B) The tertiary sector has no economic importance
(C) All workers are employed in agriculture
(D) GVA and employment measure exactly the same thing

Correct Answer: A

Explanation:

A higher GVA share than employment share indicates that the sector contributes a large amount of production relative to its share of workers.

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Question (20)

QN0038090

A village has 100 workers. If 60 work in agriculture, 20 in industry and 20 in services, which sector employs the largest number?

(A) Agriculture
(B) Industry
(C) Services
(D) All are equal

Correct Answer: A

Explanation:

Agriculture employs 60% of the workers and therefore has the largest employment share.

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Question (11)

Why are final goods and services used while calculating GDP?

Explanation:

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Question (12)

An economy produces final goods worth ₹500 crore in agriculture, ₹700 crore in industry and ₹1,300 crore in services. What is the total GDP represented by these sectors?

Explanation:

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Question (13)

An economy has primary-sector production of ₹400 crore, secondary-sector production of ₹600 crore and tertiary-sector production of ₹1,000 crore. What percentage of total production comes from the tertiary sector?

Explanation:

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Question (14)

If the value of final goods and services produced within a country in a year is ₹12 lakh crore, the GDP for that year is:

Explanation:

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Question (15)

Which indicator is particularly useful for comparing the relative contribution of sectors to total production?

Explanation:

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Question (16)

In 1977–78, the primary sector was the largest producing sector in India, while by 2017–18 the tertiary sector had become the largest. What does this change indicate?

Explanation:

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Question (17)

Production in the industrial sector increased more than nine times between 1977–78 and 2017–18, while employment increased only about three times. Which conclusion follows?

Explanation:

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Question (18)

Service-sector production increased around 14 times during the period discussed, while service-sector employment increased around five times. What does this suggest?

Explanation:

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Question (19)

A country's tertiary sector contributes 55% of GVA but employs only 30% of workers. Which conclusion is most appropriate?

Explanation:

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Question (20)

A village has 100 workers. If 60 work in agriculture, 20 in industry and 20 in services, which sector employs the largest number?

Explanation:

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