Expected ESI Questions for NABARD Grade-A Exam 2021
Expected ESI Questions for NABARD Grade-A Exam 2021
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NABARD Grade A 2021: Expected Economic & Social Issues Questions

NABARD ESI Books, PDF, Previous Papers, Question Set, and study material. Expected ESI Questions for NABARD Grade-A Exam. NABARD ESI Study Material PDF. Welcome to the Let’s Study Together online NABARD Grade-A Exam Section. If you are preparing for NABARD Grade-A Exam 2021, you will come across a section on “Economic & Social Issues (ESI)” (with a focus on Rural India) wherein 40 questions will be there carrying 40 marks.

In the NABARD Grade-A exam, Agriculture and Rural Development section holds an important role as it is asked in both phases i.e. Phase I and II. Here we are providing you with “Expected ESI Questions” for the NABARD Grade A & B 2021 Exam based on the latest pattern of your daily practice to enhance your exam preparation!

Expected ESI Questions for NABARD Grade-A Exam | Set-22


1. Which of the following factor is not included in National income?

A. Undistributed profit
B. Interest on unproductive national debt
C. Interest from government expenditure
D. The payments by the households to firms for the purchase of goods and services
E. None of these

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Correct Answer – B. Interest on unproductive national debt

Explanation: National income is an uncertain term which is used interchangeably with national dividend, national output and national expenditure. On this basis, national income has been defined in a number of ways. In common parlance, national income means the total value of goods and services produced annually in a country. Public debt or public borrowing is considered to be an important source of income to the government. If revenue collected through taxes and other sources is not adequate to cover government expenditure may resort to borrowing. Such borrowings become necessary more in times of financial crises and emergencies like war, droughts etc. Public debt may be raised internally or externally. Internal debt refers to public debt floated within the country; while external debt refers to loans floated outside the country.

2. The GDP price deflator measures………………………

A. Total growth rate of country
B. Increment in real per capita income
C. Rate of inflation in country
D. The changes in prices for all of the goods and services produced in an economy
E. None of these

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Correct Answer – D. The changes in prices for all of the goods and services produced in an economy

Explanation-The GDP price deflator measures the changes in prices for all of the goods and services produced in an economy. The GDP deflator shows how much a change in GDP relies on changes in the price level. The GDP price deflator is also known as the GDP deflator or the implicit price deflator. The GDP price deflator expresses the extent of price level changes, or inflation, within the economy. The metric includes the prices paid by businesses, the government, and consumers. Typically GDP, expressed as nominal GDP, shows the total output of the country in whole dollar terms.

  •  The GDP price deflator measures the changes in prices for all goods and services produced in an economy.
  • Using the GDP deflator helps economists compare the levels of real economic activity from one year to another.
  • Without the GDP deflator, comparing GDP from two different years would yield a deceptive result if prices changed during the two years.
  • The GDP deflator is a more comprehensive inflation measure than the CPI index because it isn’t based on a fixed basket of goods.
  •  GDP Price Deflator=(Nominal GDP ÷ Real GDP)×100

3. Which of the following statements are correct about Participatory Notes?

A. They are Offshore Derivative Investments (ODIs) with equity shares or debt securities as underlying assets.
B. They provide liquidity to the investors as they can transfer the ownership by endorsement and delivery
C. Participatory Notes or P-Notes are financial instruments issued by a registered foreign institutional investor (FII)
D. All the above
E. None of the above

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Correct Answer – D. All the above

Explanation-Participatory Notes or P-Notes (PNs) are financial instruments issued by a registered foreign institutional investor (FII) to an overseas investor who wishes to invest in Indian stock markets without registering themselves with the market regulator, the Securities and Exchange Board of India (SEBI). P-Notes are Offshore Derivative Investments (ODIs) with equity shares or debt securities as underlying assets. They provide liquidity to the investors as they can transfer the ownership by endorsement and delivery.

4. As per the budget FY 2021-22, what is the budget outlay for the new centrally sponsored scheme, PM AtmaNirbhar Swasth Bharat Yojana?

A. Rs. 84,280 crores
B. Rs. 75,180 crores
C. Rs. 64,180 crores
D. Rs. 55,250 crores
E. None of these

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Correct Answer: C. Rs. 64,180 crores

Explanation-A new centrally sponsored scheme, PM AtmaNirbhar Swasth Bharat Yojana, will be launched with an outlay of about ` 64,180 crores over 6 years. This will develop capacities of primary, secondary, and tertiary care Health Systems, strengthen existing national institutions, and create new institutions, to cater to detection and cure of new and emerging diseases. This will be in addition to the National Health Mission.

NABARD Economic & Social Issues (ESI) Study Material 2021 | Quizzes | Books | Paper PDF – Click Here

5. There are how many commodity groups of Wholesale Price Index?

A. Five
B. Eight
C. Four
D. Two
E. None of these

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Correct Answer – A. Five

Explanation- Wholesale Price Index measures the mean of the changes of goods and services prices on the basis of wholesale price. Wholesale price index is basically divided into five commodity groups-

(i) Agriculture

(ii)Manufacturing

(iii) Quarrying

(iv)Import-Export

(v) Mining.

6. Which one of the following statements regarding Factor of Production is correct?

A. It is the ratio of the output to that of the input of the production process.
B. It is the cost incurred/saved due to agglomeration of industries.
C. It is the output which is produced in the production process
D. It is the input that a firm uses in the production process
E. None of these

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Correct Answer – D. It is the input that a firm uses in the production process

Explanation- Factors of production is an economic term that describes the inputs used in the production of goods or services in order to make an economic profit. These include any resource needed for the creation of a good or service. The factors of production include land, labor, capital, and entrepreneurship. These production factors are also construed by organizations as management, machines, materials and labor, technology and knowledge. Each of these has recently been contemplated by scholars as being potential new factors of production.

7. What is another name for Environment Protection Act,1986?

A. law of Environment
B. GreenField Law
C. Law of Environment
D. The umbrella Legislation Central
E. None of these

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Correct Answer – D. The umbrella Legislation Central

Explanation- Environment Protection Act,1986 is an Act of the Parliament of India. They relate to the protection and improvement of the human environment and the prevention of hazards to human beings, other living creatures, plants and property. Environmental protection act 1986 is also the Umbrella act because it provides the framework to the central government in order to make the coordination between different state as well as the central authorities using different act like water act etc. The purpose of this act is to control the pollution from the all sources so that the quality of environment can be improved . Act like water act, air act and act relating to biological diversity is used to improve the quality.

NABARD Agriculture & Rural Development (ARD) Study Material 2021 | Quizzes | Books | Paper PDF – Click Here

8. The literacy rate in India according to 2011 census is 74.04 %; what is the rural literacy rate, according to the same?

A. 56%
B. 68%
C. 71%
D. 73%
E. None of the above

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Correct Answer – C. 71%

Explanation-According to the 2011 census, in rural areas was pegged at 71 per cent last year, compared to 86 per cent in urban areas, while among the age group of seven years and above. the male literacy rate was registered at 83 per cent vis-a-vis the female literacy rate of 67 per cent.

9. Which of the following is not a recommendation made by the Subramanian Committee on new education policy?

A. Top 200 foreign universities should be allowed to open campuses in India
B. Preschool education for children in the age group of 4 to 5 years should be declared as a right
C. Certification for teachers in both private and government schools is mandatory
D. The outlay on education should be raised to at least 10% of GDP without further loss of time
E. None of the Above

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Correct Answer –D. The outlay on education should be raised to at least 10% of GDP without further loss of time

Explanation-All recommendations are true except A. The recommendation with regard to GDP outlay is not 10%. Instead it says, – The outlay on education should be raised to at least 6% of GDP without further loss of time. This is same as recommendations made by some of the previous committees.

10. What is the poverty gap?

A. Proportion of a population mild to extreme poor
B. Proportion of a population below the poverty line
C. Average shortfall of the total population from the poverty line
D. The ratio of family or unrelated individual income to their appropriate poverty threshold
E. None of these

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Correct Answer – C. Average shortfall of the total population from the poverty line

Explanation-  The poverty gap is the average shortfall of the total population from the poverty line. The Headcount ratio (HCR) is the proportion of a population that exists, or lives, below the poverty line.

NABARD ARD Notes 2021

Types of Cropping Systems Minimum Support Prices (MSP)
Water Conservation: Need and Importance Rural Development Organizations in India
Free Complete NABARD Grade-A 2021 Study Material – Click Here

Solving NABARD Economic & Social Issues (ESI) Practice Questions will not only help you understand the level of questions in the NABARD Grade-A Exam but also give you chance to learn the topics of the NABARD Grade A & B Exam syllabus.


A Complete Book for NABARD Economic & Social Issues (ESI) 2021– Download Now

A Complete Book for NABARD Economic & Social Issues (ESI) 2021

Study Material for NABARD Grade-A 2021

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11. General Awareness ( GA-GK) Questions Asked in NABARD Grade-A Exam Click Here
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