McqMate
Chapters
| 1. |
The average income of a country is called |
| A. | Per capita income |
| B. | Disposable income |
| C. | Inflation rate |
| D. | Real national income |
| Answer» A. Per capita income | |
| 2. |
The value of NNP at production point is called |
| A. | NNP at factor cost |
| B. | NNP at market price |
| C. | GNP at market price |
| D. | GNP at factor cost |
| Answer» A. NNP at factor cost | |
| 3. |
The value of NNP at consumer point is called the |
| A. | NNP at factor cost |
| B. | NNP at market price |
| C. | GNP at market price |
| D. | GNP at factor cost |
| Answer» B. NNP at market price | |
| 4. |
When depreciation is deducted from GNP, the net value is |
| A. | Net national product (NNP) |
| B. | Net domestic product |
| C. | Gross national product |
| D. | Disposable income |
| Answer» A. Net national product (NNP) | |
| 5. |
Consider the following statements and identify the right ones. i. While calculating GNP, income generated by foreigners in a country is taken into consideration ii. While calculating GNP, income generated by nationals of a country outside the country is taken into account |
| A. | I only |
| B. | ii only |
| C. | both |
| D. | none |
| Answer» B. ii only | |
| 6. |
What is the net value of GDP after deducting depreciation from GDP(Gross domestic product)? |
| A. | Net national product |
| B. | Net domestic product |
| C. | Gross national product |
| D. | Disposable income |
| Answer» B. Net domestic product | |
| 7. |
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 |
| Answer» C. both | |
| 8. |
Which of the following is considered as financial year in India? |
| A. | April 1 to March 31 |
| B. | January 1 to December 31 |
| C. | March 1 to April 30 |
| D. | March 16 to March 15 |
| Answer» A. April 1 to March 31 | |
| 9. |
Which is not added in the calculation of national income of India? |
| A. | The value of goods and services |
| B. | The sold value of the old fridge |
| C. | Services rendered by the housewives |
| D. | Both [B] & [C] |
| Answer» D. Both [B] & [C] | |
| 10. |
Which sector contributes the most to India's economy in terms of GDP? |
| A. | Service sector |
| B. | Manufacturing sector |
| C. | Agricultural sector |
| D. | Small scale industries |
| Answer» A. Service sector | |
| 11. |
Which Ministry is responsible for calculating GDP in India? |
| A. | Ministry of Finance |
| B. | Ministry of Commerce and Industry |
| C. | Ministry of Central Statistical and Program Implementation (Central statistical organization) |
| D. | Ministry of consumer Affairs |
| Answer» C. Ministry of Central Statistical and Program Implementation (Central statistical organization) | |
| 12. |
Which statement is true? |
| A. | National Expenditure = National income |
| B. | National Expenditure = National income + National savings |
| C. | National Expenditure = National income + Taxes |
| D. | National Expenditure = National income – Taxes |
| Answer» A. National Expenditure = National income | |
| 13. |
Which statement is true? |
| A. | National Income = National expenditure - indirect taxes |
| B. | NI = GNP - NNP |
| C. | NI = NNP - indirect taxes (because, from NNP if we minus the indirect taxes it will give us NNP@FC which is equal to NI) |
| D. | NI = PI |
| Answer» C. NI = NNP - indirect taxes (because, from NNP if we minus the indirect taxes it will give us NNP@FC which is equal to NI) | |
| 14. |
There are methods of measuring national income: |
| A. | 5 |
| B. | 2 |
| C. | 1 |
| D. | 3 |
| Answer» D. 3 | |
| 15. |
If we compare GDP and GNP, then: |
| A. | GNP = GDP - net income from abroad |
| B. | GNP = GDP + net income from abroad (R-P)……. GDP+(R-P) |
| C. | GNP = NNP - net income from abroad |
| D. | GNP = NNP + net income from abroad |
| Answer» B. GNP = GDP + net income from abroad (R-P)……. GDP+(R-P) | |
| 16. |
Select the correct statement: |
| A. | Transfer payment are included in national income |
| B. | Depreciation allowance is a part of GNP |
| C. | Taxes are not included in NNP |
| D. | GDP means Gross Direct Production |
| Answer» B. Depreciation allowance is a part of GNP | |
| 17. |
Which is the largest figure: |
| A. | NNP |
| B. | GNP |
| C. | PI (Disposable Personal Income) |
| D. | PI (personal income) |
| Answer» B. GNP | |
| 18. |
Which is a flow concept: |
| A. | Number of my shirts |
| B. | My total wealth |
| C. | My monthly income |
| D. | Money supply |
| Answer» C. My monthly income | |
| 19. |
To avoid double counting when GDP is estimated, economists: |
| A. | Use GDP deflator |
| B. | Calculate value added at each stage of production |
| C. | Use retail prices |
| D. | Use price of only intermediate goods |
| Answer» B. Calculate value added at each stage of production | |
| 20. |
Personal income includes: |
| A. | Direct taxes |
| B. | Indirect taxes |
| C. | Depreciation |
| D. | None of these |
| Answer» A. Direct taxes | |
| 21. |
Personal income includes: |
| A. | Transfer payments |
| B. | Indirect taxes |
| C. | Depreciation |
| D. | All of the above |
| Answer» A. Transfer payments | |
| 22. |
If savings exceed investment then: |
| A. | National income rises |
| B. | National income falls |
| C. | National income is not affected |
| D. | None of the above |
| Answer» B. National income falls | |
| 23. |
This statement is true |
| A. | NI = rent + interest + wages + profit |
| B. | NI = rent + interest + wages + taxes |
| C. | NI = Govt. expenditure + interest + wages + profit |
| D. | NI = rent + interest + wages + pensions |
| Answer» A. NI = rent + interest + wages + profit | |
| 24. |
Which Ministry is responsible for calculating GDP in India? |
| A. | Ministry of Finance |
| B. | Ministry of Commerce and Industry |
| C. | Ministry of Central Statistical and Program Implementation |
| D. | Ministry of consumer Affairs |
| Answer» C. Ministry of Central Statistical and Program Implementation | |
| 25. |
An Indian farmer produces wheat without incurring cost of inputs all sells for Rs. 1,000 to a miller who grinds wheat into flour and sells for Rs 1,200 to baker. The baker sells bread to consumers for Rs. 1,600. Total added is Rs. |
| A. | 1,600 |
| B. | 2,200 |
| C. | 1,000 |
| D. | 1,400 |
| Answer» A. 1,600 | |
| 26. |
How much does the primary sector contribute to India's GDP? |
| A. | 26% |
| B. | 20% |
| C. | 53% |
| D. | 14% |
| Answer» B. 20% | |
| 27. |
Which sector contributes the most to India's economy? |
| A. | Service sector |
| B. | Manufacturing sector |
| C. | Agricultural sector |
| D. | Small scale industries |
| Answer» A. Service sector | |
| 28. |
If the contribution of the agricultural sector is decreasing in a country's economy, then what conclusion can be drawn? |
| A. | The country is growing in the direction of being a developed nation |
| B. | The country is moving towards becoming developing nation |
| C. | The country is moving towards becoming less developed nation |
| D. | The economic growth rate of the country has stopped |
| Answer» A. The country is growing in the direction of being a developed nation | |
| 29. |
Which is not added in the calculation of national income of India? |
| A. | The value of goods and services |
| B. | The sold value of the old fridge |
| C. | Services rendered by the housewives |
| D. | Both b & c |
| Answer» D. Both b & c | |
| 30. |
Output means. ……………unless stated otherwise |
| A. | Gross output at MP (GDPmp) |
| B. | Net output at MP |
| C. | Gross output at FC |
| D. | None |
| Answer» A. Gross output at MP (GDPmp) | |
| 31. |
Which of the following is not a component of domestic income? |
| A. | Operating surplus |
| B. | Compensation of employees |
| C. | Net factor income from abroad |
| D. | Mixed income |
| Answer» C. Net factor income from abroad | |
| 32. |
If factor cost is greater than marker price, it means that |
| A. | Indirect taxes < subsidies (Subsidy> indirect taxes) |
| B. | Indirect taxes > subsidies |
| C. | I.T = subsidies |
| D. | None |
| Answer» A. Indirect taxes < subsidies (Subsidy> indirect taxes) | |
| 33. |
An Indian farmer produces wheat without incurring cost of inputs alll sells for Rs. 1,000 to a miller who grinds wheat into flour and sells for Rs 1,200 to baker. The baker sells bread to consumers for Rs. 1,600. Total added is Rs. |
| A. | 1,600 |
| B. | 2,200 |
| C. | 1,000 |
| D. | 1,400 |
| Answer» A. 1,600 | |
| 34. |
Which of the following is not true about final goods? |
| A. | Final gods satisfy wants of ultimate consumers and producers. |
| B. | Final goods have direct demand as they satisfy the wants directly. |
| C. | Final goods are subject to further transformation in the process of production. |
| D. | Final goods are neither used up as raw-material nor for resale in the same year. |
| Answer» C. Final goods are subject to further transformation in the process of production. | |
| 35. |
Following is an example of final good: |
| A. | Flour used by a banker in making biscuits |
| B. | Unsold stock of goods lying with the sellers |
| C. | Tyres purchased by a transport company |
| D. | Mobile sets purchased by a mobile dealer |
| Answer» B. Unsold stock of goods lying with the sellers | |
| 36. |
Which out of the following is not included in estimation of NI? |
| A. | Subsidized Lunch |
| B. | Old-age Pension |
| C. | Free Medical facilities |
| D. | Construction of a house |
| Answer» B. Old-age Pension | |
| 37. |
Which of the following is a synonym of “Undistributed Profits”? |
| A. | Savings of private corporate sector |
| B. | Reserves and Surplus |
| C. | Retained Earnings |
| D. | All of these |
| Answer» D. All of these | |
| 38. |
Piyush’s mother is a teacher. She also teaches Piyush. How would you treat this white calculating national income and domestic income? |
| A. | It will be included in the national income, but not in the domestic income. |
| B. | It will be included in the domestic income, but not in the national income. |
| C. | It will be included in domestic income as well as national income. |
| D. | It will neither be included in the domestic income nor in the national income. |
| Answer» D. It will neither be included in the domestic income nor in the national income. | |
| 39. |
Subsidy implies Selling the product |
| A. | To the government at higher prices |
| B. | Below the cost of production. |
| C. | Selling the product at loss. |
| D. | Selling the product at cost plus indirect taxes. |
| Answer» B. Below the cost of production. | |
| 40. |
Which of the following is correct? |
| A. | If national income rises, per capita income must also rise. |
| B. | If population rises, per capita income must fall. |
| C. | If national income rises, welfare of the people must rise. |
| D. | None of the above. |
| Answer» D. None of the above. | |
| 41. |
Goods which are not used in the production of other goods are called: |
| A. | Capital goods |
| B. | Consumption goods |
| C. | Producer goods |
| D. | Intermediate goods |
| Answer» B. Consumption goods | |
| 42. |
Depreciation is the: |
| A. | Loss of vale of fixed assets in use due to normal wear and tear |
| B. | Loss of value of fixed assets in use due to normal rate of accidental damages |
| C. | Loss of value of fixed assets in the due to foreseen obsolescence |
| D. | All of these |
| Answer» D. All of these | |
| 43. |
Which of following is not included in national income? |
| A. | Factor income |
| B. | Rent |
| C. | Operating surplus |
| D. | Transfer income |
| Answer» D. Transfer income | |
| 44. |
Which of following is not a capital good? |
| A. | Use of Machine tools |
| B. | Raw Material |
| C. | Advocate’s Services |
| D. | Heavy Machinery |
| Answer» C. Advocate’s Services | |
| 45. |
Which of following is not an intermediate goods? |
| A. | Wheat |
| B. | Gold |
| C. | Service of Doctor |
| D. | Sand and Bricks |
| Answer» C. Service of Doctor | |
| 46. |
Which of following is not a final good? |
| A. | Machinery purchased by dealer |
| B. | Machinery purchased by a factory |
| C. | Use of petrol |
| D. | Washing machine |
| Answer» A. Machinery purchased by dealer | |
| 47. |
Which of following is not a part of national income? |
| A. | Depreciation |
| B. | Net factor income from abroad |
| C. | Operating surplus |
| D. | Mixed income |
| Answer» A. Depreciation | |
| 48. |
Product method of calculating national income is also known as: |
| A. | Income method |
| B. | Value added method |
| C. | Expenditure method |
| D. | Distribution method |
| Answer» B. Value added method | |
| 49. |
Transfer payments refer to payments, which are made: |
| A. | Without any exchange of goods and services |
| B. | To workers on transfer from one job to another |
| C. | As compensation to employees |
| D. | None |
| Answer» A. Without any exchange of goods and services | |
| 50. |
National Income differs from Net National Product at market price by the amount of: |
| A. | Current transfers from rest of the world |
| B. | Net Indirect Taxes (difference between Indirect tax and subsidy) |
| C. | National debt interest |
| D. | it does not differ |
| Answer» B. Net Indirect Taxes (difference between Indirect tax and subsidy) | |
| 51. |
Net national product at factor cost is also known as: |
| A. | Net Domestic product |
| B. | Gross National product |
| C. | National Income |
| D. | Personal Income |
| Answer» C. National Income | |
| 52. |
In GNP calculation which of the following should be excluded? |
| A. | Rental incomes |
| B. | Interest payments |
| C. | Dividends |
| D. | Government transfer payment |
| Answer» D. Government transfer payment | |
| 53. |
National Income differs from Net National Product at market price by the amount of: |
| A. | Current transfers from rest of the world |
| B. | Net Indirect Taxes |
| C. | National debt interest |
| D. | it does not differ |
| Answer» B. Net Indirect Taxes | |
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