If the total size of the economy is growing year after year, it implies that 

1. GDP growth rate must be increasing steadily year after year. 

2. Gross Capital formation in the economy must be increasing year after year. 

Which of the above statements is/are incorrect?

Consider the following statements regarding Incremental Capital-Output Ratio (ICOR). 

1. The incremental capital output ratio (ICOR) denotes the relationship between the level of investment made in the economy and the consequent increase in the gross domestic product (GDP). 

2. The higher the ICOR, the higher the productivity of capital. 3. In the last ten years, the ICOR has seen substantial decline in India. 

Which of the above statements is/are correct?

Which of the following expenditure by the Government are considered as Transfer payments? 

1. Universal Basic Income. 

2. Subsidies paid to farmers 

3. Conditional cash transfers 

Select the correct answer code: 

Which of the following is/are part of the Personal Disposable Income? 

1. Non-tax Payments such as fines

 2. Corporate Tax. 

3. Personal Tax Payments.

 4. Net Interest payments made by households 

Select the correct answer code: 

Consider the following statements regarding GDP deflator. 

1. GDP deflator is a measure of the level of prices of all new, domestically produced, final goods and services in an economy in a year. 

2. Unlike the CPI, the GDP deflator is not based on a fixed basket of goods and services. 

3. When GDP deflator is negative, it necessarily means that there is inflation in the economy. Which of the above statements is/are correct?