✅ Answer: A)GDP (Gross Domestic Product) measures the total value of goods and services produced WITHIN a country’s borders, regardless of who produces them. A Japanese company’s factory in India contributes to India’s GDP. GNP measures production by a country’s nationals anywhere in the world.

✅ Answer: B) ₹205 lakh croreGNP = GDP + NFIA = ₹200 + ₹5 = ₹205 lakh crore. NFIA is positive when Indians earn more abroad than foreigners earn in India. In this case, India earns ₹5 lakh crore more from abroad than foreigners earn in India.

✅ Answer: C) UNDPThe Human Development Index (HDI) was developed by UNDP and introduced by Pakistani economist Mahbub ul Haq in 1990. It measures human development through three dimensions: Education, Health (life expectancy), and Income (GNI per capita).

✅ Answer: C) Tertiary sector (Services)The tertiary (services) sector contributes approximately 60% to India’s GDP — the largest share. This includes IT, banking, trade, transport, and other services. Despite employing fewer workers (~30%), it generates the most economic value.

✅ Answer: B)Disguised unemployment occurs when more workers are employed than needed. If 3 workers can do a job but 6 are employed, the extra 3 have zero marginal productivity — removing them won’t reduce output. This is common in Indian agriculture.

✅ Answer: D) Both B and C are correctIndia is the 5th largest economy by nominal GDP and the 3rd largest by Purchasing Power Parity (PPP). PPP adjusts for the fact that money buys more in India than in developed countries, making India’s economy appear larger in PPP terms.

✅ Answer: C) Income inequalityThe Gini Coefficient measures income inequality. It ranges from 0 (perfect equality — everyone has the same income) to 1 (perfect inequality — one person has all the income). India’s Gini coefficient is approximately 35 (on a 0-100 scale).

✅ Answer: B) 2011-12India currently uses 2011-12 as the base year for calculating GDP. The base year was changed from 2004-05 to 2011-12 in 2015. The National Statistical Office (NSO) — formerly CSO — releases GDP data.

✅ Answer: D) NNP at Factor CostNational Income = NNP at Factor Cost = NNP at Market Price − Indirect Taxes + Subsidies. It represents the actual income earned by factors of production (land, labour, capital, enterprise) in the economy.

✅ Answer: C) StagflationStagflation = Stagnation + Inflation. It is a situation where high inflation coexists with high unemployment and slow economic growth. It is the worst economic scenario because the usual remedies for inflation (raising interest rates) worsen unemployment. India faced stagflation in the 1970s.