NABARD Grade A 2021: Economic & Social Issues Questions

NABARD ESI Books, PDF, Previous Papers, Question Set, and study material. 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 “Important Economic & Social Issues (ESI) Questions” for the NABARD Grade A & B 2021 Exam based on the latest pattern of your daily practice to enhance your exam preparation!

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NABARD Economic & Social Issues (ESI) Question | Set-16

1. When we say that a person has more money in his hand to save or to consume when compared to the previous year for example, then there is a definite increase in which of the following?

A. Personal Income of that person
B.  Personal Disposable Income of that person
C. Taxes levied by the government
D. Taxes paid by that person
E.  Cannot be said

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Correct Answer – B. Personal Disposable Income of that person

Explanation- Personal Income (PI) ≡ National Income – Undistributed profits – Net interest payments made by households – Corporate tax + Transfer payments to the households from the government and firms.

Personal Disposable Income (PDI) ≡ PI – Personal tax payments – Non-tax payments

2. The concept of Human Development was developed by which of the following economists?

A.  Amartya Sen
B. John Maynard Keynes
C. Mahbubul Haq
D. Prasanna Chandra Mahalanobis
E. None of the above

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Correct Answer – C. Mahbubul Haq

Explanation- Working with Nobel Laureate Amartya Sen and other gifted economists, in 1990 Dr. Haq published the first Human Development Report, which was commissioned by the United Nations Development Programme.

3. Which of the following resources are NOT Factors of Production?

A. Land
B. Entrepreneurship
C. Labour
D. Capital
E. Wages

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Correct Answer – E. Wages

Explanation- Wages is the Factor Income which is derived from the Factors of Production. The factors of production are resources that are the building blocks of the economy; they are what people use to produce goods and services. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship.

4. Investment in public works is known as-

A. Revenue expenditure
B. Capital expenditure
C. Current expenditure
D. Either (a) or (b)
E. None of these

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Correct Answer – B. Capital expenditure

Explanation- Capital expenditure or capital expense (capex or CAPEX) is the money a company spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land. It is considered a capital expenditure when the asset is newly purchased or when money is used towards extending the useful life of an existing asset, such as repairing the roof.

5. Net national product (NNP) is equal to

A. GNP + depreciation
B. GNP – depreciation
C. GNP + exports
D. GNP – exports
E. None of these

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Correct Answer: B. GNP – depreciation

Explanation- Net national product (NNP) is the monetary value of finished goods and services produced by a country’s citizens, overseas and domestically, in a given period (i.e., the gross national product (GNP) minus the amount of GNP required to purchase new goods to maintain existing stock (i.e., depreciation).
NNP = Gross National Product – Depreciation

6. Deficit financing implies-

A. Printing new currency notes
B. Public expenditure in excess of public revenue
C. Replacing new currency with worn out currency
D. Public revenue in excess of public expenditure
E. None of these

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Correct Answer – B. Public expenditure in excess of public revenue

Explanation- Deficit financing means generating funds to finance the deficit which results from excess of expenditure over revenue. The gap being covered by borrowing from the public by the sale of bonds or by printing new money.

7. Shares issued by the companies to their shareholders free of cost by capitalization of accumulated reserves from the profits earned in the earlier years is known as-

A. Preference shares
B. Rights shares (Issue)
C. Bonus shares
D. Cumulative preference shares
E. None of these

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Correct Answer – C. Bonus shares

Explanation- Capitalization of Profits’ denotes the process of conversion of accumulated profits or reserves of a company into capital by means of a share issue. This share issue is called as bonus issue, capitalization or free issue. It involves the issue of new shares to existing shareholders by converting the accumulated profits or reserves into share capital of the company.

8. India Infrastructure Finance Company Ltd (IIFCL) is a wholly-owned ____________ company set up in 2006.

D. Finance Ministry
E. Government of India

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Correct Answer – E. Government of India

Explanation- IIFCL is a wholly-owned Government of India company set up in 2006 to provide long-term finance to viable infrastructure projects through the Scheme for Financing Viable Infrastructure Projects through a Special Purpose Vehicle called India Infrastructure Finance Company Ltd (IIFCL), broadly referred to as SIFTI.

9. India has shifted to a new GDP series. The GDP was earlier calculated at __________and is now being calculated at

A. Factor Cost, Market Price
B. Market Price, Factor Cost
C. Basic Price, Factor cost
D. Basic Price, Market Price
E. Current Price, Constant Price

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Correct Answer – A. Factor Cost, Market Price

Explanation- Earlier, domestic GDP was calculated at factor cost, which took into account prices of products received by producers. The new formula takes into account market prices paid by consumers and thus the Consumer-end is given importance.

10. The Human Development Report which is released by the UNDP, the United Nations global development network is headquartered in-

A. Washington DC, USA
B. Berlin, Germany
C. New York City, USA
D. Montreal, Canada
E. Rome, Italy

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Correct Answer – C. New York City, USA

Explanation- UNDP advocates for change and connects countries to knowledge, experience and resources to help people build a better life.

  • It provides expert advice, training and grants support to developing countries, with increasing emphasis on assistance to the least developed countries.
  • Currently, the UNDP is one of the main UN agencies involved in the development of the Post-2015 Development Agenda.

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

NABARD Grade A 2021 Important Links

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9. NABARD Agriculture & Rural Development (ARD) Study Material | Quizzes | Books | Paper PDF Click Here
10. NABARD Economic & Social Issues (ESI) Study Material | Quizzes | Books | Paper PDF Click Here
11. General Awareness ( GA-GK) Questions Asked in NABARD Grade-A Exam Click Here
12. Economic and Social Issues (ESI) Questions Asked in NABARD Grade-A Exam Click Here
13. Agriculture and Rural Development (ARD) Questions Asked in NABARD Grade-A Exam Click Here