Paper II · Part B — Economics

Basic Concepts: National Income, GDP and GNP

Exam-focused notes, visual explanation, traps, revision sheet and every mapped past NDA question.

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Core4 mapped NDA questions

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Build exam-ready understanding by connecting the core idea, formulas or facts, worked example and previous NDA questions. Focus on why each rule works, then test it under timed conditions.

Concept

Economics studies how a society uses its resources. National income measures the total value of goods and services a country produces. The key aggregates are GDP and GNP.

These indicators show the size and health of an economy.

Key Points & Formulas

GDP (Gross Domestic Product): value of goods/services produced within a country in a year.
GNP = GDP + net income earned from abroad.
Per capita income = national income ÷ population.
India's economy has three sectors: primary (agriculture), secondary (industry), tertiary (services).

Worked Example

Q. How does GNP differ from GDP?

GDP counts production within the country's borders.

GNP adds the net income residents earn from abroad (and subtracts income sent out).

So GNP = GDP + net factor income from abroad.

Common traps

Reading the prompt too quickly and missing a qualifier.
Memorising the result without checking when it applies.
Skipping units, signs, chronology or the final reasonableness check.

NDA shortcuts

State the governing rule before substituting values.
Eliminate impossible options before doing full calculation.

One-screen revision sheet

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Core definition
Most-used rule
One representative example

Past-paper bank

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4 NDA questions

Choose an answer before the solution appears. Option order is mixed automatically.

Question 1

NDA I 2026

Consider the following statements:

I. The Second Five-Year Plan sought to promote development which would establish socialistic pattern of society in India.

II. Between 1966 and 1969, three Annual Plans were formulated.

III. The Ninth Five-Year Plan could not take off at its stipulated time in the 60th year of India's Independence.

Which of the statements given above are correct?

Question 2

NDA II 2025

With which of the following was the Bretton Woods System NOT associated?

Question 3

NDA II 2025

Which one among the following plans is also known as Mahalanobis Plan?

Question 4

NDA I 2025

Cambium is an example of

Continue in Test Module Five Year Plans and Planning in India →