Economic and Social Issues (ESI) Questions for RBI Grade B | Test-5

Correct Answer: E. All the above

Explanation- If the Gini-coefficient of a country falls, it indicates that there is a decrease in the level of inequality in that country.

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.

Correct Answer – B. 11.5%

Explanation: International Monetary Fund has projected an 11.5 percent growth rate for India in 2021. With the latest projections, India has regained the tag of the fastest developing economies of the world. In 2020, the Indian economy is estimated to have contracted by 8%. In IMF’s latest World Economic Outlook Update, China is next with 8.1 percent growth in 2021 followed by Spain and France.

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.

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

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

Correct Answer – C. Bonus shares

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.

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.

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.