UPSC (2026) Prelims Practice MCQs( GDP, National Income Accounting, Statistics)

 

UPSC (2026) Prelims Practice MCQs

( GDP, National Income Accounting, Statistics)

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1. With reference to Gross Domestic Product (GDP), consider the following statements:

1. GDP measures the market value of all final goods and services produced within a country’s borders.

2. GDP includes the value of intermediate goods used in production.

3. GDP can be calculated using both production and expenditure approaches.

Which of the statements given above are correct?

A. 1 only

B. 1 and 3 only

C. 2 and 3 only

D. 1, 2 and 3

Answer: B

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2. Which of the following statements best explains the base year in GDP calculations?

A. It is the year in which GDP growth is highest.

B. It is the benchmark year used for comparing real GDP over time.

C. It is the year when inflation is zero.

D. It is the first year after independence.

Answer: B

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3. India’s latest GDP series released by the Ministry of Statistics and Programme Implementation uses which of the following as the base year?

A. 2011–12

B. 2015–16

C. 2022–23

D. 2020–21

Answer: C

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4. Consider the following statements regarding Gross Value Added (GVA):

1. GVA measures the value of goods and services produced in different sectors of the economy.

2. GDP can be obtained by adding net indirect taxes to GVA.

3. GVA includes subsidies but excludes taxes.

Which of the statements given above are correct?

A. 1 and 2 only

B. 2 only

C. 1 and 3 only

D. 1, 2 and 3

Answer: A

Explanation:

GDP = GVA + (Indirect taxes – subsidies).

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5. In national income accounting, statistical discrepancies refer to:

A. Differences between nominal GDP and real GDP

B. Differences between production-side and expenditure-side estimates of GDP

C. Errors in tax calculation

D. Differences between state GDP estimates

Answer: B

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6. Which of the following components contributes the largest share to India’s GDP?

A. Government Final Consumption Expenditure

B. Gross Fixed Capital Formation

C. Private Final Consumption Expenditure

D. Net Exports

Answer: C

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7. Consider the following components of GDP:

1. Private Final Consumption Expenditure (PFCE)

2. Gross Fixed Capital Formation (GFCF)

3. Government Final Consumption Expenditure (GFCE)

Which of the above together account for the major share of India’s GDP?

A. 1 only

B. 1 and 2 only

C. 1, 2 and 3

D. 2 and 3 only

Answer: C

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8. Which of the following factors contributes to statistical discrepancies in GDP data?

1. Lack of complete expenditure data

2. Delays in reporting consumption or investment data

3. Differences between production and consumption estimates

Select the correct answer:

A. 1 only

B. 1 and 2 only

C. 2 and 3 only

D. 1, 2 and 3

Answer: D

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9. Which of the following statements regarding real GDP is correct?

A. Real GDP measures economic output at current prices.

B. Real GDP removes the effect of inflation from nominal GDP.

C. Real GDP includes only industrial output.

D. Real GDP excludes services.

Answer: B

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10. Why is the base year periodically revised in GDP calculations?

1. To reflect changes in production structure

2. To incorporate new consumption patterns

3. To update price data used for deflators

Select the correct answer:

A. 1 only

B. 1 and 2 only

C. 1, 2 and 3

D. 2 and 3 only

Answer: C

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Quick UPSC Revision (From the Article)

Concept	Key Fact
LatestGDP base year	2022–23
GDP formula	GDP = GVA + Net Indirect Taxes
LargestGDP component	Private consumption (~60%)
Second largest	Investment (~30%)
Statistical discrepancy	Difference between production & expenditure estimates