MCQ
GDP Estimates MCQ - Practice Questions with Answers
Solve 53 GDP Estimates questions for RAS/RPSC preparation.
Practice questions
Q1Consider the following statements on current and constant price estimates: 1. Estimates prepared at prevailing prices of the current year are termed estimates at current prices. 2. Estimates prepared at base-year prices are termed estimates at constant prices. 3. Comparing estimates at current prices over years gives the measure of real growth. 4. Base-year revision is meant to help reflect structural changes in the economy through macro aggregates such as GDP. Which of the statements given above are correct?
Statements 1, 2 and 4 are correct. MoSPI’s new-series methodology explains current prices, constant prices and the rationale for base-year revision. Statement 3 is false because real growth is measured by comparing constant-price estimates, not current-price estimates.
Q2Consider the following statements on the expenditure approach to quarterly GDP: 1. The expenditure approach estimates GDP as the sum of final consumption expenditures of households, NPISH and government. 2. Gross Fixed Capital Formation, change in stocks, valuables and net exports are included among the final expenditure categories. 3. Net exports are excluded from quarterly GDP estimation under the expenditure approach. Which of the statements given above are correct?
Statements 1 and 2 are correct. The MoSPI methodology explicitly includes consumption, GFCF, change in stocks, valuables and net exports. Statement 3 is false because net exports are included, not excluded.
Q3Consider the following statements on current and constant price GDP estimates: 1. Estimates at the prevailing prices of the current year are termed estimates at current prices. 2. Estimates prepared at base-year prices are termed estimates at constant prices. 3. The comparison of estimates at current prices gives the measure of real growth. Which of the statements given above are correct?
Statements 1 and 2 are correct definitions from MoSPI’s national accounts material. Statement 3 is false: real growth is measured by comparing constant-price estimates, not current-price estimates.
Q4Consider the following statements on current and constant price GDP estimates: 1. A base year is the selected year whose prices are used for preparing estimates in real terms. 2. Estimates at current prices are prepared at the prices prevailing in the current year. 3. Comparing estimates at constant prices over years gives the measure of nominal growth. Which of the statements given above are correct?
Statements 1 and 2 are correct: MoSPI explains that real-term macro aggregates are prepared at the prices of a selected base year, while current-price estimates use prevailing current-year prices. Statement 3 is incorrect because comparison at constant prices measures real growth, not nominal growth.
Q5Consider the following statements regarding the new series of quarterly GDP estimates released with the 2022-23 base year: 1. The release was made in the context of revision of the National Accounts base year to 2022-23. 2. The release covered a new series of quarterly GDP estimates and various aggregates. 3. The revised series incorporated changes in estimation methodology, high-frequency indicators, deflation strategy and granularity of estimation. 4. The revised series discontinued quarterly GDP estimates and retained only annual GDP estimates. Which of the statements given above are correct?
Statements 1, 2 and 3 are correct. The release was linked to the base-year revision to 2022-23, introduced a new series of quarterly GDP estimates and aggregates, and incorporated changes in methodology, high-frequency indicators, deflation and granularity. Statement 4 is false because quarterly GDP estimates were released, not discontinued.
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6Consider the following statements on basic price, producer’s price and market price: 1. If output is valued at basic prices, taxes less subsidies on products are added to value added to obtain GDP at market price. 2. Basic price is the price before taxes on products are added and before subsidies on products are deducted. 3. Producer’s price excludes taxes less subsidies on products in comparison with basic price. Which of the statements given above are correct?
7Consider the following statements on current-price QGDP estimates: 1. QGDP estimates at current prices are compiled by superimposing WPI or CPIs on constant-price QGVA estimates at major industry group level. 2. Implicit price deflators are worked out as the ratio of GVA at current prices to GVA at constant prices. 3. Current-price QGVA for an industry equals constant-price QGVA plus the implicit price deflator for that quarter. 4. For constant-price estimates, taxes on products are compiled using the GDP deflator, while subsidies are compiled by volume extrapolation. Which of the statements given above are correct?
8Consider the following statements regarding current and constant prices in national accounts: 1. Estimates prepared at the prevailing prices of the current year are termed estimates at current prices. 2. Estimates prepared at base-year prices are termed estimates at constant prices. 3. Comparing current-price estimates over the years gives the measure of real growth. Which of the statements given above are correct?
9Consider the following statements regarding GDP: 1. GDP measures the monetary value of final goods and services produced in a country during a given period. 2. GDP counts output generated within the borders of a country. 3. GDP includes all unpaid household work because it is productive activity. Which of the statements given above are correct?
10Consider the following statements regarding the methodology of Advance Estimates of GDP: 1. Advance Estimates are indicator based and use the benchmark-indicator method. 2. In this method, estimates available for the previous financial year are extrapolated using relevant sectoral indicators. 3. MoSPI states that only government ministries supply data for these estimates. Which of the statements given above are correct?
11Consider the following statements on national-accounting identities used in GDP estimates: 1. Gross value added at factor cost is output minus intermediate consumption. 2. GDP at market prices is obtained by subtracting taxes and adding subsidies to GDP at factor cost. 3. The expenditure-side identity includes final consumption expenditure, gross fixed capital formation and net exports. Which of the statements given above are correct?
12Consider the following statements: 1. Under the quarterly release calendar, Q1 estimates for April-June were due on 31 August or the previous working day. 2. Q2 estimates for July-September were due on 28 February along with the Second Advance Estimates. 3. Q3 estimates for October-December were due on 28 February or the previous working day and were released along with the Second Advance Estimates. 4. Q4 estimates for January-March were due along with Provisional Estimates. Which of the statements given above are correct?
13Consider the following statements regarding approaches to GDP estimation: 1. The production approach estimates GDP as output less the goods and services used in production. 2. The expenditure approach includes final expenditures plus exports less imports of goods and services. 3. In theory, the production, expenditure and income approaches yield different GDP results by design. Which of the statements given above are correct?
14Consider the following statements regarding the 2011-12 base-year national accounts series: 1. CSO introduced the new series with base year 2011-12 in place of the 2004-05 series on 30 January 2015. 2. The series incorporated latest available data from surveys and censuses, new economic activities and expanded coverage. 3. The 2011-12 series deliberately ignored the System of National Accounts, 2008 recommendations. Which of the statements given above are correct?
15Consider the following statements on GDP at market prices: 1. QGDP at constant market prices is obtained by adding taxes on products and subtracting subsidies on products from the sum of industry-wise GVA at constant prices. 2. QGDP at current market prices is the sum of industry-wise QGVA plus taxes on products less subsidies on products. 3. Quarterly current-price estimates of taxes on products are compiled using monthly data on tax revenue. 4. In current market-price QGDP, subsidies are added to taxes on products to obtain GDP from GVA. Which of the statements given above are correct?