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Economics Unit 1: Gross Domestic Product and its Growth: An Introduction — Online MCQ Test

SOCIAL SCIENCE · CLASS 10th · Tamil Nadu State Board
Practice Economics Unit 1: Gross Domestic Product and its Growth: An Introduction with a free chapter-wise online MCQ test. This chapter covers: This chapter introduces macro-economic concepts including National Income Gross Domestic Product and sectoral contributions. Students analyze economic growth development paths and.... AI-generated questions from basic to board-exam level, with instant results and explanations.

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Economics Unit 1: Gross Domestic Product and its Growth: An Introduction — Important Questions & Answers

What does the term 'GDP' stand for?
  • A. Gross Domestic Product
  • B. Global Development Program
  • C. Gross Domestic Process
  • D. General Domestic Product
Answer: A. Gross Domestic Product
GDP stands for Gross Domestic Product, which measures the total value of goods and services produced within a country's borders.
Which of the following is considered a primary sector activity?
  • A. Banking
  • B. Agriculture
  • C. Manufacturing
  • D. Transport
Answer: B. Agriculture
The primary sector involves the extraction of raw materials, such as agriculture, fishing, and mining.
Which of the following is included in the calculation of GDP?
  • A. Value of second-hand goods
  • B. Value of final goods and services produced within the country
  • C. Transfer payments
  • D. Value of intermediate goods used for production
Answer: B. Value of final goods and services produced within the country
GDP only accounts for the market value of all final goods and services produced within a country's geographical boundary.
If a country's GDP grows faster than its population, what happens to the Per Capita Income?
  • A. It decreases
  • B. It remains constant
  • C. It increases
  • D. It fluctuates unpredictably
Answer: C. It increases
Since Per Capita Income is National Income divided by population, a faster growth in national income relative to population results in a rise in average income.
Which combination correctly represents the sectors of the economy?
  • A. Primary, Secondary, Tertiary
  • B. Agriculture, Industry, Public
  • C. Private, Public, Joint
  • D. Primary, Manufacturing, Service
Answer: A. Primary, Secondary, Tertiary
The economy is formally classified into three sectors: Primary (natural resources), Secondary (manufacturing), and Tertiary (services).