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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. |
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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