Question 1

The value of NNP at consumer point is called the&#10;A)nnp at factor cost&#10;B)nnp at market price&#10;C)gnp at market price&#10;D)gnp at factor cost

Accepted Answer

NNP at consumer point is referred to as NNP at market price. This is because it includes net national product (NNP) values adjusted for market prices, including taxes and subsidies, to reflect the final prices consumers pay.

Question 2

What is the net value of GDP after deducting depreciation from GDP(Gross domestic product)?&#10;A)net national product&#10;B)net domestic product&#10;C)gross national product&#10;D)disposable income

Accepted Answer

The net value of GDP after deducting depreciation (also known as capital consumption) is referred to as the Net Domestic Product (NDP). This measure reflects the total value of all goods and services produced within a country's borders in a specific time period, after accounting for the depreciation on its capital goods.

Question 3

Consider the following statements and identify the right ones.
i. National income is the monetary value of all final goods and services produced.
ii. Depreciation is deducted from gross value to get the net value

A)i only
B)ii only
C)both
D)none

both

Accepted Answer

Both statements are correct. National income indeed refers to the monetary value of all final goods and services produced within a country's borders in a specific time period. Depreciation is subtracted from the gross value to arrive at the net value, reflecting the decrease in value of assets over time.

Question 4

Which of the following is considered as financial year in India?&#10;A)april 1 to march 31&#10;B)january 1 to december 31&#10;C)march 1 to april 30&#10;D)march 16 to march 15

Accepted Answer

In India, the financial year runs from April 1 to March 31. This period is used for government, corporate, and personal accounting purposes to calculate annual financial statements.

Question 5

Which is not added in the calculation of national income of India?&#10;A)the value of goods and services&#10;B)the sold value of the old fridge&#10;C)services rendered by the housewives&#10;D)both [b] & [c]

Accepted Answer

The sold value of the old fridge and services rendered by housewives are not included in the calculation of national income. The sale of used goods (like an old fridge) does not contribute to the current production of goods and services, and household services are not part of the market economy, hence not counted in national income.

Question 6

Which sector contributes the most to India's economy in terms of GDP?&#10;A)service sector&#10;B)manufacturing sector&#10;C)agricultural sector&#10;D)small scale industries

Accepted Answer

The service sector is the largest contributor to India's GDP, significantly outpacing the manufacturing, agricultural, and small-scale industries sectors. This sector includes IT services, telecommunications, finance, and hospitality, among others, and has been a key driver of India's economic growth.

Question 7

Which statement is true?&#10;A)national expenditure = national income&#10;B)national expenditure = national income + national savings&#10;C)national expenditure = national income + taxes&#10;D)national expenditure = national income - taxes

Accepted Answer

National expenditure equals national income because in an economy, the total amount spent on goods and services (national expenditure) must equal the total income generated by producing those goods and services (national income), assuming a closed economy without international trade.

Question 8

There are methods of measuring national income:&#10;A)5&#10;B)2&#10;C)1&#10;D)3

Accepted Answer

There are three primary methods of measuring national income: the income method, the output (or production) method, and the expenditure method. Each approach offers a different perspective on the economy's total income generation, production, and spending activities.

Question 9

If we compare GDP and GNP, then:&#10;A)gnp = gdp - net income from abroad&#10;B)gnp = gdp + net income from abroad (r-p) &#8230;&#8230;. gdp+(r-p)&#10;C)gnp = nnp - net income from abroad&#10;D)gnp = nnp + net income from abroad

Accepted Answer

Gross National Product (GNP) is calculated by taking the Gross Domestic Product (GDP) and adding net income from abroad (income residents earn from investments abroad minus income foreigners earn from domestic investments). Therefore, GNP = GDP + net income from abroad.

Question 10

Select the correct statement:&#10;A)transfer payment are included in national income&#10;B)depreciation allowance is a part of gnp&#10;C)taxes are not included in nnp&#10;D)gdp means gross direct production

Accepted Answer

Depreciation allowance is considered a part of Gross National Product (GNP) because it accounts for the wear and tear on capital goods over time, allowing for the replacement of these goods so that the production level can be maintained.

Question 11

Which is the largest figure:&#10;A)nnp&#10;B)gnp&#10;C)pi (disposable personal income)&#10;D)pi (personal income)

Accepted Answer

The answer of Which is the largest figure:&#10;A)nnp&#10;B)gnp&#10;C)pi (disposable personal...

Question 12

Which is a flow concept:&#10;A)number of my shirts&#10;B)my total wealth&#10;C)my monthly income&#10;D)money supply

Accepted Answer

The answer of Which is a flow concept:&#10;A)number of my...

Question 13

To avoid double counting when GDP is estimated, economists:&#10;A)use gdp deflator&#10;B)calculate value added at each stage of production&#10;C)use retail prices&#10;D)use price of only intermediate goods

Accepted Answer

The answer of To avoid double counting when GDP is...

Question 14

Personal income includes:&#10;A)direct taxes&#10;B)indirect taxes&#10;C)depreciation&#10;D)none of these

Accepted Answer

The answer of Personal income includes:&#10;A)direct taxes&#10;B)indirect taxes&#10;C)depreciation&#10;D)none of these...

Question 15

Personal income includes:&#10;A)transfer payments&#10;B)indirect taxes&#10;C)depreciation&#10;D)all of the above

Accepted Answer

The answer of Personal income includes:&#10;A)transfer payments&#10;B)indirect taxes&#10;C)depreciation&#10;D)all of the...

Question 16

If savings exceed investment then:&#10;A)national income rises&#10;B)national income falls&#10;C)national income is not affected&#10;D)none of the above

Accepted Answer

The answer of If savings exceed investment then:&#10;A)national income rises&#10;B)national...

Question 17

This statement is true&#10;A)ni = rent + interest + wages + profit&#10;B)ni = rent + interest + wages + taxes&#10;C)ni = govt. expenditure + interest + wages + profit&#10;D)ni = rent + interest + wages + pensions

Accepted Answer

The answer of This statement is true&#10;A)ni = rent +...

Question 18

Which Ministry is responsible for calculating GDP in India?&#10;A)ministry of finance&#10;B)ministry of commerce and industry&#10;C)ministry of central statistical and program implementation&#10;D)ministry of consumer affairs

Accepted Answer

The answer of Which Ministry is responsible for calculating GDP...

Question 19

How much does the primary sector contribute to India's GDP?&#10;A)26%&#10;B)20%&#10;C)53%&#10;D)14%

Accepted Answer

The answer of How much does the primary sector contribute...

Question 20

Which sector contributes the most to India's economy?&#10;A)service sector&#10;B)manufacturing sector&#10;C)agricultural sector&#10;D)small scale industries

Accepted Answer

The answer of Which sector contributes the most to India's...

Question 21

If the contribution of the agricultural sector is decreasing in a country's economy, then what conclusion can be drawn?&#10;A)the country is growing in the direction of being a developed nation&#10;B)the country is moving towards becoming developing nation&#10;C)the country is moving towards becoming less developed nation&#10;D)the economic growth rate of the country has stopped

Accepted Answer

The answer of If the contribution of the agricultural sector...

Question 22

Which is not added in the calculation of national income of India?&#10;A)the value of goods and services&#10;B)the sold value of the old fridge&#10;C)services rendered by the housewives&#10;D)both b & c

Accepted Answer

The answer of Which is not added in the calculation...

Question 23

Output means. &#8230;&#8230;&#8230;&#8230;&#8230;unless stated otherwise&#10;A)gross output at mp (gdpmp)&#10;B)net output at mp&#10;C)gross output at fc&#10;D)none

Accepted Answer

The answer of Output means. &#8230;&#8230;&#8230;&#8230;&#8230;unless stated otherwise&#10;A)gross output at...

Deck 2: National Income and GDP Calculation in India