McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) .
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. |
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 | |
| 6. |
Consider the following statements and identify the right ones.
|
| A. | i only |
| B. | ii only |
| C. | both |
| D. | none |
| Answer» C. both | |
| 7. |
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 | |
| 8. |
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] | |
| 9. |
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 | |
| 10. |
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 | |
| 11. |
There are methods of measuring national income: |
| A. | 5 |
| B. | 2 |
| C. | 1 |
| D. | 3 |
| Answer» D. 3 | |
| 12. |
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) | |
| 13. |
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 | |
| 14. |
Which is the largest figure: |
| A. | nnp |
| B. | gnp |
| C. | pi (disposable personal income) |
| D. | pi (personal income) |
| Answer» B. gnp | |
| 15. |
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 | |
| 16. |
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 | |
| 17. |
Personal income includes: |
| A. | direct taxes |
| B. | indirect taxes |
| C. | depreciation |
| D. | none of these |
| Answer» A. direct taxes | |
| 18. |
Personal income includes: |
| A. | transfer payments |
| B. | indirect taxes |
| C. | depreciation |
| D. | all of the above |
| Answer» A. transfer payments | |
| 19. |
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 | |
| 20. |
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 | |
| 21. |
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 | |
| 22. |
Which state of India currently has the highest Per Capita Income? |
| A. | goa |
| B. | delhi |
| C. | maharashtra |
| D. | punjab |
| Answer» A. goa | |
| 23. |
How much does the primary sector contribute to India's GDP? |
| A. | 26% |
| B. | 20% |
| C. | 53% |
| D. | 14% |
| Answer» B. 20% | |
| 24. |
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 | |
| 25. |
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 | |
| 26. |
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 | |
| 27. |
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) | |
| 28. |
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 | |
| 29. |
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) | |
| 30. |
An Indian farmer produces wheat without incurring cost of inputs alll
|
| A. | 1,600 |
| B. | 2,200 |
| C. | 1,000 |
| D. | 1,400 |
| Answer» A. 1,600 | |
| 31. |
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. | |
| 32. |
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 | |
| 33. |
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 | |
| 34. |
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 | |
| 35. |
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. | |
| 36. |
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 | |
| 37. |
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 | |
| 38. |
Which of following is not included in national income ? |
| A. | factor income |
| B. | rent |
| C. | operating surplus |
| D. | transfer income |
| Answer» D. transfer income | |
| 39. |
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 | |
| 40. |
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 | |
| 41. |
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 | |
| 42. |
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 | |
| 43. |
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 | |
| 44. |
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) | |
| 45. |
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 | |
| 46. |
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 | |
| 47. |
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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