Deck 1: National Income and Measurement

Question 1

Which of the following is an example of Transfer Income?

A)bonus
B)unemployment allowance
C)compensation from the employer
D)all of these

Answer 1

all of these

Question 2

Which of the following is an example of an intermediate good?

A)car sold by a dealer of second hand cars
B)steel and cement used to construct a flyover
C)fertilizers purchased by a farmer
D)all of these

Answer 2

all of these

Question 3

Out of the following, which aggregate represents 'National Income'?

A)nnp mp
B)gnp fc
C)nnp fc
D)gnp mp

Answer 3

nnp fc

Question 4

if facor income received from abroad is equal to factor income paid abroad, then which of the following is not a valid statement?

A)national income = domestic income
B)ndp fc + depreciation = gnp fc
C)ndp fc + depreciation = gnp mp
D)all are valid

Question 5

Cororate tax is not a part of :

A)personal income
B)naional income
C)domestic income
D)private income

Question 6

If economic subsidies are added to and Indirect taxes are substracted from the national income at market prices, then it will be equal to :

A)domestic income
B)national income
C)gnp at market price
D)gdp at factor cost

Question 7

In which type of economy, domestic income is equal to national income?

A)open economy
B)closed economy
C)both a and b
D)neither a nor b

Question 8

Domestic factor income is another name for:

A)ndp fc
B)nnp mp
C)gdp fc
D)nnp fc

Question 9

Which of the following ia a part of National Income?

A)old age pension
B)unemployment allowance
C)profit
D)scholarship

Question 10

NDP at FC is less than National Income when:

A)net factor income from abroad is positive
B)net factor income from abroad is negative
C)net factor income from abroad is zero
D)net exports are positive

Question 11

National income is equal to:

A)domestic product plus factor income earned from abroad
B)domestic product plus net factor income earned from abroad
C)domestic product mins factor income earned from abroad
D)domestic product plus export minus imports

Question 12

is the net amount available to households for consuption and saving

A)national income
B)personal income
C)personal disposable income
D)government income

Question 13

GNP exceeds NNP by:

A)amount of total taxes
B)government expenditure
C)transfer payments
D)difference between gross investment and net investment

Question 14

GDP MP = Rs.1000 and subsidies = Rs.50, then GDP FC will be :

A)1050
B)950
C)1000
D)900

Question 15

"Income method" is also known as:

A)distributive share method
B)income disposal method
C)industrial origin method
D)none of these

Question 16

Which one is included in National Income?

A)winning from lottery
B)milk purchase by a dairy shop
C)national debt interest
D)none of these.

Question 17

'Distributed Profits' is also known as:

A)corporate tax
B)dividend
C)retained earnings
D)none of these

Question 18

If a farmer sells Wheat to miller for RS.500 and miller sells flour to baker for Rs.700 and baker sells bread to consumer for Rs.1000, then total value added by Miller and baker is:

A)500
B)300
C)1700
D)1200

Question 19

Which of the following is included in domestic income?

A)factor income from abroad
B)windfall gains
C)pension on retirement
D)capial gains

Question 20

Expenditure method focuses on measurement of National income at:

A)phases of production of goods and services
B)phase of income distribution
C)phase of income disposition
D)all of these

Question 21

Which of the following is not an economic activity and hence not included while estimating national income in india?

A)medical services rendered by a dispensary
B)a housewife doing household work
C)a lawyer doing his practiced
D)a maid working full time with a family

Question 22

National product at current prices is higher than national product at constant prices during a period of :

A)rising prices
B)falling prices
C)constant prices
D)both a and b

Question 23

Net Factor Income from Abroad is taken into account when National Income is calculated by:

A)value added method
B)income method
C)expenditure method
D)any of the three methods

Question 24

Broker's commission on sale and purchase of second hand goods is included in national income because:

A)it is a part of compensation of employees
B)it is a part of gross domestic capital formation
C)it is an income earned for rendering productive services
D)none of these

Question 25

The first National Income calculation on a scientific basis in India is in the year

A)1947-48
B)1951-52
C)1931-32
D)1990-91