[CUET] 150 MCQs of National income chapter class 12 CBSE Board
Looking for, (Multiple Choice Questions) MCQs of National Income and related aggregates chapter (unit) of Macroeconomics class 12 CBSE Board.
I have compiled the important MCQs of many topics such as consumption, capital, and intermediate goods, investment concept, domestic territory, and normal residents, etc.
Apart from it, MCQs comprise methods of calculating national income by value-added, income, and expenditure method.
Multiple Choice Questions of National Income and related aggregates chapter class 12
We have compiled more than 200 MCQs on all topics of national income chapter class 12 of macroeconomics according to the syllabus of the CBSE Board.
This unit is also known as National Income Accounting as per the NCERT Macroeconomics Book.
1. Food Items purchased by a production unit are
a) Single-use consumer goods
b) Durable use consumer goods
c) Single-use Capital goods
d) Durable use capital goods
Ans – c
2. Capital at the end of the year 2012 was ₹ 100 crore and at the end of the year 2013 was ₹ 110 crore. Depreciation during the year 2013 was ₹ 5 crore. Gross investment during 2013 is:-
a) ₹ 5 crore
b) ₹ 10 crore
c) ₹ 15 crore
d) ₹ 110 crore
Ans – b
3. Fixed capital at the end of the year 2013 was ₹ 50 crore and at the end of the year 2014 ₹ 55 crore. Closing stock at the end of year 2013 and 2014 was respectively ₹ 10 crore and ₹ 5 crore respectively. Gross investment during 2014 is :-
a) 0
b) 5
c) 10
d) 15
Ans – a
4. Capital loss is:-
a) Normal wear and tear of fixed capital goods
b) Foreseen obsolescence
c) Unforseen obsolescence
d) All the above
Ans – c
5. A firm hires the services of a chartered accountant and pays fees. For the firm, payment of fess is:-
a) Final expenditure
b) Intermediate expenditure
c) Investment expenditure
d) Capital expenditure
Ans – b
6. Purchase of refrigerator by a restaurant is:-
a) Consumption expenditure on durable good
b) Consumption expenditure on non-durable good
c) Intermediate expenditure
d) Final expenditure
Ans – d
7. Capital and investment are:-
a) Both flows
b) Both stocks
c) Capital is stock while investment is flow
d) Investment is stock while capital is flow
Ans – c
8. A ‘resident’ of a country is one :
a) Who was born in that country
b) Who lives in that country
c) Who is citizen of that country
d) Who lives, earns, spends and accumulates in that country
Ans – d
9. Economics territory is one in which the following move freely :
a) People
b) Goods
c) Capital
d) All the above
Ans – d
10. Economic territory of a country is also called :
a) Geographical territory
b) Political frontiers
c) Domestic territory
d) All the above
Ans – c
11. Chinese embassy in India is a part of economic territory of:
a) China
b) India
c) Both China and India
d) International area
Ans – a
12. GDP at mp is:
a) Inclusive of depreciation
b) Inclusive of indirect tax
c) Exclusive of subsidies
d) All the above
Ans – d
13. Given GDP at mp = 100, subsidies = 5 and depreciation = 10, then NDP at fc equals :
a) 95
b) 100
c) 105
d) 115
Ans – 95
14. Given NDP at fc = 80, indirect tax = 10, and net factor income to abroad = -10, what is NNP at mp?
a) 70
b) 80
c) 90
d) 100
Ans – b
15. Macroeconomics is concerned with:
a) the level of output of goods and services in the economy
b) the general level of prices
c) GDP growth
d) all of these
Ans – d
16. Study of the general price level is a subject matter of:
a) microeconomics
b) macroeconomics
c) both a) and b)
d) None of these
Ans – b
17. Aggregation is involved in:
a) microeconomics
b) macroeconomics
c) both a) and b)
d) none of these
Ans – c
18. Economic agents include:
a) government
b) consumers
c) producers
d) all of these
Ans – d
19. Which of the following statements is associated with general equilibrium analysis?
a) It is the method of study in microeconomics
b) It is the method of study in macroeconomics
c) There is no change in the labour market
d) None of these
Ans – b
20. Consumption of all goods and services in the economy during the period of an accounting year is knows as:
a) aggregate demand
b) aggregate supply
c) aggregate consumption
d) none of these
Ans – c
21. Classification of goods depend on the:
a) consumption of goods
b) production of goods
c) first – use of goods
d) end -use of goods
Ans – d
22. Final goods are used by the:
a) consumers
b) producers
c) government
d) all of these
Ans – d
23. Those goods which satify human wants directly are called:
a) intermediate goods
b) consumer goods
c) capital goods
d) none of these
Ans – b
24. Capital goods are those goods:
a) which are used in the production process for several years
b) which are used in the prodcution process for few years
c) which involve depreciation losses
d) both a) and c)
Ans – d
25. Food processor used by the households in their kitchen is an example of:
a) capital goods
b) intermediate goods
c) consumption goods
d) none of these
Ans – c
26. In the production of sugar, sugarcane is:
a) a final good
b) a capital good
c) an intermediate good
d) none of these
Ans – c
27. If a car is purchased by a taxi-operator, it will be regarded as a:
a) capital good
b) intermediate good
c) final good
d) both a) and c)
Ans – d
28. T.V, radio, washing machine, etc,. are examples of:
a) durable consumer goods
b) semi-durable consumer goods
c) single use consumer goods
d) capital goods
Ans – a
29. Which of the following is a semi-durable good?
a) Radio
b) Clothes
c) Milk
d) Petrol
Ans – b
30. Increase in the stock of capital is known as:
a) capital loss
b) capital gain
c) capital formation
d) None of these
Ans – c
31. Net investment is equal to:
a) gross investment + depreciation
b) gross investment – depreciation
c) gross investment * depreciation
d) gross investment / depreciation
Ans – b
32. Net capital formation causes:
a) increase in production capacity
b) increase in depreciation
c) increase in profits
d) increase in cost
Ans – a
33. Which of the following leads to depreciation:
a) Normal wear and tear
b) Damages due to floods
c) Damages due to market crash
d) None of these
Ans – a
34. Which of the following leads to unexpected obsolescence?
a) change in demand
b) Natural calamities
c) change in technology
d) None of these
Ans – b
35. Which of the following is the cause of expected obsolescence?
a) Natural calamities
b) Change in demand
c) Change in technology
d) Both b) and c)
Ans – d
36. Depreciation reserve fund is needed for:
a) inventory stock
b) advertisement
c) replacement investment
d) None of these
Ans – c
37. A stock variable
a) has no time dimension
b) is a static concept
c) both a) and b)
d) None of these
Ans – c
38. A quantity measured per unit of time period is known as:
a) stock variable
b) flow variable
c) inventory
d) None of these
Ans – b
39. ‘Income of the family is the example of which variable?
a) Stock
b) Flow
c) Both stock and flow
d) Neither stock nor flow
Ans – b
40. Which of the following is a stock variable?
a) Interest on capital
b) Distance between Delhi and Manali
c) Expenditure of Money
d) All of these
Ans – b
41. Which of the following is not a flow variable?
a) Income
b) Capital formation
c) Supply of money in a country
d) Leakage of water from the overhead tank
Ans – c
42. A car running between Delhi and Agra at a speed at 120 Km/h includes:
a) only stock variables
b) only flow variables
c) both a stock and a flow variable
d) None of these
Ans – c
43. Factor services rendered by the households to the firms lead to:
a) real flow
b) money flow
c) services flow
d) both a) and c)
Ans – a
44. Reason for the circular flow of income is:
a) government intervention
b) production of goods and services
c) mutual interdependence of producer and household sector
d) invention of money
Ans – c
45. The market price of the final goods and services (including depreciation) produced within the domestic territory of a country during an accounting year, is called:
a) GDP at market price
b) GNP at market price
c) GDP at factor cost
d) GNP at factor cost
Ans – a)
46. National income is often estimated as:
a) NDP at FC
b) NNP at mp
c) NDP at mp
d) NNP at FC
Ans – d
47. Domestic product is equal to
a) National product + Net factor income from abroad
b) National product – Net factor income from abroad
c) National product / Net factor income from abroad
d) National Product * Net factor income from abroad
Ans – b
48. Net indirect taxes are estimated as:
a) Indirect taxes + Subsidies
b) Subsidies – Indirect taxes
c) Indirect taxes – Subsidies
d) both b) and c)
Ans – c
49. Which of the following is not correct?
a) NNP at market price = GNP at market price + Depreciation
b) NDP at market price = NNP at market price – net factor income from abroad
c) NDP at factor cost = NDP at market price – Indirect taxes + subsidies
d) GDP at Factor cost = NDP at factor cost + Depreciation
Ans – a
50. Which one is correct?
a) National Income = NDP at factor cost – Net factor income from abraod
b) GNP at Factor cost = GNP at market price + Net Indirect tax
c) Natinoal Income = Domestic income + Net factor income from abroad
d) GDP at Factor cost = NDP at factor cost – Depreciation
Ans – c
51. Basis of the difference between the concepts of market price and factor cost is:
a) direct taxes
b) indirect taxes
c) subsidies
d) Net indirect taxes
Ans – d
52. Which one leads to factor cot?
a) Market price – Indirect taxes
b) Market price – Net indirect taxes
c) Market price + Indirect taxes
d) Market price + Net indirect taxes
Ans – b
53. Which one includes depreciation?
a) GNP at market price
b) NNP at market price
c) NNP at factor cost
d) None of these
Ans – a
54. Which of the following is an example of normal residents of India?
a) Foreign worker working in WHO located in India
b) The german working as a director in IMF office located in India
c) Ambassador in India from rest of the world
d) Ambassador of India in rest of the world
Ans – d
55. National income includes:
a) old-age pensions
b) money spent by an NRI to his family in India
c) transfer payments from the rest of the world
d) None of these
Ans – d
56. Financial help to a victim is:
a) transfer payment
b) factor income
c) net factor income from abroad
d) None of these
Ans – a
57. The difference between national income and domestic income is that of:
a) net indirect taxes
b) net factor income from abroad
c) consumption of fixed capital
d) both a) and b)
Ans – b
58. GNP at market price is measured as:
a) GDP at market price – Depreciation
b) GDP at market price + Net factor income from abroad
c) GNP at market price + subsidies
d) NDP at factor cost + Net factor income from abroad
Ans – b
59. National income refers to:
a) factor incomes only
b) income of only normal residents of the country
c) the sum total of domestic income and net factor income from abroad
d) all of these
Ans – d
60. National income (NNP at FC) is equal to:
a) GNP at FC + depreciation
b) GNP at FC – depreciation
c) NNP at mp – Net indirect taxes
d) both b) and c)
Ans – d
61. Which of the following makes GDP an inappropriate index of welfare?
a) Non-monetary transactions
b) Externalities
c) Composition and distribution of GDP
d) All of these
Ans – d
62. The impact of an externality is:
a) Positive
b) Negative
c) either positive or negative
d) neither positive nor negative
Ans – c
63. Real National income means:-
a) National income at current prices
b) national income at factor prices
c) national income at constant prices
d) national income at average prices of the past 10 years
Ans – c
64. GDP Deflator =
a) Real income/Nominal income * 100
b) Nominal Income/Real Income * 100
c) Real Income/Population * 100
d) None of these
Ans – b
65. Increase in the price of commodities due to an increase in taxes assumes relevance in the estimation of NNP at MP because:
a) taxes are compulsory payments
b) taxes are transfer payments
c) taxes are paid out of the income of the households
d) taxes cause a rise in the market price of the commodities which otherwise
would have been sold at a lower price
Ans – d
66. Household inventory is:
a) not included in national income
b) a stock concept
c) both a) and b)
d) None of these
Ans – c
- Remittances from a relative working abroad are:-
a) included in national income
b) not included in national income
c) transfer payments
d) both b) and c)
Ans – d
68. own account production of goods is included in national income because:
a) goods are tangible
b) their valuation is possible
c) goods are more productive than services
d) None of these
Ans – b
69. Value-added refers to:-
a) production of durable goods
b) output – intermediate consumption
c) production of non-durable goods
d) expenditure on intermediate goods
Ans – b
70. Gross domestic capital formation is the sum total of:
a) expenditure on fixed assets
b) gross domestic fixed capital formation and change ins stock
c) net domestic fixed capital formation + inventory investment + depreciation
d) both b) and c)
Ans – d
71. Value added method measures the contribution of which of the following within the domestic territory of a country?
a) Household consumers
b) The producing enterprises owned by residents of the country
c) The producing enterprises owned by the non-residents of the country
d) Both b) and c)
Ans – d
72. Which of the following items is not included while estimating national income by the Income method?
a) Rent
b) Mixed income
c) Fixed investment
d) Undistributed profits
Ans – c
73. Which of the following is not an element of final consumption expenditure?
a) Household expenditure on food
b) Government final consumption expenditure
c) Household expenditure on education
d) Expenditure on raw material
Ans – d
74. As a result of double counting, national income is:
a) over-estimated
b) Under-estimated
c) correctly estimated
d) not estimated for the entire year of accounting
Ans – a
75. Which of the following is not included in national income?
a) Receipt of a gift cheque sent by your parents settled abroad
b) REpatriation of wages earned by the NRIs to their parents in India
c) Excise duty on domestic production
d) All of these
Ans – d
76. Which of the following is not a transfer payment?
a) Interest on national debt
b) Retirement pensions
c) Old age pensions
d) Donations
Ans – b
77. Which of the following items is not included while estimating the GNP of a country at market price?
a) Sales of the enterprises
b) Indirect taxes
c) Remittances by NRIs
d) Subsidy
Ans – c
78. Own account production of services is not included in national income because:
a) services are different from goods
b) services are not productive
c) it is difficult to measure the market value of such services
d) None of these
Ans – c
79. Difference between closing stock and opening stock during an accounting year is known as:
a) increase in stock
b) change in stock
c) decrease in stock
d) None of these
Ans – b
80. Compensation of employees includes:
a) wages and salaries in cash
b) wages and salaries in kind
c) pension on retirement
d) all of these
Ans – d
81. Operating Surplus =
a) Rent + Profit + Interest
b) Rent + Interest + Compensation of employees
c) NDP at FC – Compensation of employees – Mixed income of self-employed
d) both a) and c)
Ans – d
82. Which of the following is not included in inventory investment?
a) Change in the stock of finished goods
b) Change in the stock of semi-finished goods
c) Change in the stock of raw material
d) Change in sales during the year
Ans – d
83. Which of the following is not a part of the final expenditure?
a) Consumer goods purchased by the government
b) Consumer goods exported to the rest of the world
c) Seeds purchased by the farmers
d) Government fixed investment expenditure
Ans – c
84. Problem of double counting can be avoided by using:
a) final output method
b) value-added method
c) both a) and b)
d) neither a) nor b)
Ans – c
85. Which of the following is irrelevant in the estimation of compensation of employees?
a) Free accommodation provided to the school principles
b) Free education of the students whose parents are working in schools
c) Wages and salaries in cash
d) Old age pensions
Ans – d
86. Which of the following is a phase of the circular flow of income?
a) Generation Phase
b) Distribution Phase
c) Disposition Phase
d) All of these
Ans – d
87. Which of the following is not an example of a flow variable?
a) Number of births during a year
b) National Wealth
c) National Income
d) Wheat produced during a year
Ans – b
88. Which of the following is not considered a factor of income?
a) Rent
b) Wages
c) Gifts from abroad
d) Profit
Ans – c
89. Two-sector economy consists of:
a) Households, firms
b) Firms, Foreign sector
c) Households, Government
d) Firms, Government
Ans – a
90. Stock variable is defined as a variable that is
a) Measured over a period of time
b) Measured at a particular point in time
c) Can not be measured
d) None of these
Ans – b
91. Losses are classified as:
a) Stock variable
b) Flow variable
c) Either a) or b)
d) Neither a) nor b)
Ans – b
92. Real flow is also known as:
a) Nominal flow
b) Physical flow
c) Money flow
d) Both a) and b)
Ans – b
93. Which of the following is the consumption sector?
a) Households
b) Firms
c) Foreign
d) Government
Ans – a
94. Money flow involves the exchange of:
a) Goods and services
b) Gifts
c) Money
d) None of these
Ans – c
95. Real flow refers to the flow of factor services from…..to…….
a) Firms to households
b) Households to firms
c) Firms to government
d) Households to government
Ans – b
96. In a closed economy,………is not included.
a) Households
b) Firms
c) Government
d) Foreign sector
Ans – d
97. Which of the following is not a flow?
a) capital
b) Income
c) Investment
d) Depreciation
Ans – a
98. Which of the following is a stock?
a) Wealth
b) Saving
c) Exports
d) Profits
Ans – a
99. Which of the following is a flow?
a) Deposits in a bank
b) Capital
c) Depreciation
d) Wealth
Ans – c
100. Which of the following is a stock?
a) Savings
b) Production
c) Consumption of fixed capital
d) Capital
Ans – d
101. The flow of goods and services and factors of production across different sectors in a barter economy is known as:
a) Circular Flow
b) Real Flow
c) Monetary Flow
d) Capital Flow
Ans – b
102. Which of the following are covered under the domestic territory of India?
a) state bank of India in London
b) Google office in India
c) Office of Tata Motors in Australia
d) Russian Embassy in India
Ans – b
103. Which one of the following is an intermediate product?
a) Purchase of oil by consumers
b) Machine purchased by firms
c) Wheat used by a flour mills
d) Wheat used by households
Ans – c
104. Which one of the following is not an example of final goods?
a) Chalk, dusters, etc. purchased by a school
b) seeds used by the farmers
c) milk used by a sweets shop
d) All of the above
Ans – d
105. Which of the following constitute the reason for the difference between market Prices and Factor Cost?
a) Subsidies
b) Indirect Taxes
c) both a) and b)
d) Neither a) nor b)
Ans – c
106. Final goods refer to those goods which are used either fo_______or for______.
a) Consumption, investment
b) Consumption, resale
c) Resale, investment
d) Resale, further production
Ans – a
107. Net factor income from abroad is:
a) Exports menu Imports
b) Visible Exports minus Visible Imports
c) factor incomes received from abroad minus factor income paid abroad
d) Factor incomes received from abroad
Ans – c
108. Depreciation means:
a) Destruction of a plant in a fire accident
b) Losses of fixed assets over time due to wear and tear
c) Loss of fixed assets in an earthquake
d) Closure of the plant due to lockout
Ans – b
109. Market price and Factor cost will be equal when there are:
a) No direct tax
b) No Indirect tax
c) No subsidy
d) No indirect tax and no subsidy
Ans – d
110. Which of the following is an example of transfer income?
a) Bonus
b) Unemployment Allowance
c) Compensation from the employer
d) All of the above
Ans – b
111. Which of the following is an example of an intermediate goods
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 the above
Ans – d
112. Sugar purchased by a Sweet shop is an……good, while it is a ……good when it is purchased by a consumer
a) Capital, final
b) final, intermediate
c) intermediate, final
d) final, producer
Ans – c
113. Depreciation of fixed capital assets refers to:
a) Normal wear and tear
b) Foreseen obsolescence
c) Normal wear and tear & foreseen obsolescence
d) Unforeseen obsolescence
Ans – c
114. Unforeseen obsolescence of fixed capital assets during production is:
a) Consumption of fixed capital
b) Capital loss
c) Income loss
d) None of the above
Ans – b
115. A refrigerator purchased by a confectionery shop is an example of:
a) Final good
b) Intermediate good
c) Capital good
d) Both a) and c)
Ans – d
116. Which of the following is an example of Non-durable good?
a) Milk
b) Bread
c) Both a) and b)
d) Clothes
Ans – c
117. Addition to the capital stock of an economy is termed as:
a) Investment
b) Capital loss
c) Consumption of fixed capital
d) All of these
Ans – a
118. The Japanese Embassy in India is a part of the domestic territory of
a) India
b) Japan
c) Both a) and b)
d) International Area
Ans – b
119. Foreign embassies in India are a part of India’s
a) Economic territory
b) Geographical territory
c) both a) and b)
d) None of the above
Ans – b
120. Goods purchased for the following purpose are final goods:
a) For the satisfaction of wants
b) For investment in firm
c) Both a) and b)
d) None of the above
Ans – c
121. Out of the following, which aggregate represents ‘National Income’?
a) NNP at MP
b) GNP at FC
c) NNP at FC
d) GNP at MP
Ans – c
- If factor 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 at FC + Depreciation = GNP at FC
c) NDP at FC + Depreciation = GNP at MP
d) All are valid
Ans – c
- Fill in the blank: NNP at FC………………= GDP at MP
a) + Depreciation – Net Factor Income from abroad – Net Indirect Taxes
b) + Depreciation + Net Factor INcome from abroad + Net Indirect taxes
c) + Depreciation – Net factor income from abraod + Net Indirect taxes
d) + Depreciation + Net facotr income from abroad – Net Indiarect taxes
Ans – c
- If economic subsidies are added to and indirect taxes are subtracted from the national income at market prices, then it will be equal to:
a) Domestic Income
b) National Income
c) Gross national product at market prices
d) Gross Domestic product at factor cost
Ans – b
- Which of the following is not a component of operating surplus?
a) Interest
b) Rent
c) Royalty
d) Compensation of Employees
Ans – d
- In which type of country, domestic income is equal to national income?
a) open Economy
b) Closed Economy
c) Both a) and b)
d) Neither a) nor b)
Ans – b
- Domestic factor income is another name for:
a) NDP at FC
b) NNP at MP
c) GDP at FC
d) NNP at FC
Ans – a
- Net domestic product at factor cost 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
Ans – a
- National Income is equal to:
a) Domestic product plus factor incomes earned from abroad
b) Domestic product plus net factor incomes earned from abroad
c) Domestic product minus factor incomes to abroad
d) Domestic product plus export minus imports
Ans – b
- If net national product is given at Marke prices, we_____indirect taxes and______subsidies to get National Income of the economy.
a) Add, Subtract
b) Add, Divide
c) Subtract, Add
d) Subtract, Divide
Ans – c
- From the following information, compute GNP at MP. GDP at FC = ₹ 3,000; Net factor income to abroad = ₹ 200. Indirect Taxes = ₹ 420, Subsidies = ₹ 240.
a) 3,380
b) 2,980
c) 3,020
d) 2,620
Ans – b
- GNP exceeds NNP by:
a) Amount of total taxes
b) Government expenditure
c) Transfer Payments
d) Difference between gross and net investment
Ans – d
133. Which of the following is included in the compensation of employees?
a) Dearness Allowance
b) Tools were given to employees to be used during work
c) Payment by the insurance company to an injured employee
d) Contribution by employee to the provident fund.
Ans:-a)
134. GDP at MP = ₹ 1000 and Subsidies = ₹ 50, then GDP at FC will be:-
a) 1050
b) 950
c) 1000
d) 900
Ans:- a)
135. Which of the following is not a part of profits?
a) Corporate tax
b) Dividends
c) Retained earnings
d) Royalty
Ans:- d)
136. “Income method” is also known as:-
a) Distributive share method
b) Income Disposal Method
c) Industrial Origin Method
d) None of these
Ans:- a)
137. Which of the following is a synonym of “Undistributed Profits”
a) Savings of private corporate sector
b) Reserve and surplus
c) Retained earnings
d) All of these
Ans:- d)
138. The value of intermediate consumption will be…………, If the purchase of raw
material is ₹ 1200, exports are ₹ 600 and imports are ₹ 200.
a) 1200
b) 800
c) 1800
d) 1400
Ans:- a)
139. 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
Ans:- d)
140. Gross Investment is also known as: i) Gross Domestic Capital Formation, ii)
Gross Capital Formation, iii) Gross Fixed Capital Formation, iv) Gross
Domestic Fixed Capital Formation.
a) Both i) and ii)
b) i)
c) ii)
d) i), ii), and iv)
Ans:- a)
141. Which of the following method can be used to calculate National Income?
a) Income Method
b) Expenditure Method
c) Value Added Method
d) All of the above
Ans:- d)
142. The commodity service method is another name for:-
a) Expenditure Method
b) Income Method
c) Value added Method
d) None of these
Ans:- c)
143. Distributed Profits are known as:-
a) Corporate tax
b) Dividend
c) Retained Earnings
d) None of these
Ans:- b)
144. If a farmer sells wheat to a miller for ₹ 500 and a miller sells flour to the baker for ₹ 700 and baker sells bread to the consumer for ₹ 1000, then the total value added by miller and baker are:
a) 500
b) 300
c) 1700
d) 1200
Ans:- a)
145. Which of the following is a part of the Expenditure Method?
a) Rent and Royalty
b) Mixed Income
c) Net Exports
d) Sales
Ans:- c)
146. If NDP at FC = ₹ 1500 and Net Factor Income to Abroad = ₹500, then NNP at FC will
be:-
a) 2000
b) 1500
c) 1000
d) 2500
Ans:- c)
147. Net Exports is calculated as:
a) Exports + Imports
b) Exports – Imports
c) Imports – Exports
d) None of these
Ans:- b)
148. Which of the following is included in domestic income?
a) Factor income from abroad
b) Windfall gains
c) Capital Gains
d) Bonus for employees
Ans:- d)
149. Which of the following is not included in the compensation of employees?
a) Wages and Salaries in cash
b) Wages and Salaries in kind
c) Employees’ contribution to social security schemes
d) Employer’s contribution to social security schemes
Ans:- c)
150. When the entire output is sold in an accounting year, the the value of output is equal to:
a) Sales + Change in Stock
b) Sales
c) Sales – Change in the stock
d) None of these
Ans:- b)
151. “operating surplus” refers to:
a) Income from property
b) Income from entrepreneurship
c) Income from property and entrepreneurship
d) None of these
Ans:- c)
152. According to the income method, domestic income is equal to:
a) Rend and Royalty + Interest + Profit + Compensation of employees + Mixed-Income
b) Operating surplus + Compensation of employees + Income of self-employed
c) Both a) and b)
d) Neither a) nor b)
Ans:- c)
153. Gross Domestic Capital Formation can be calculated as:-
a) Gross Fixed Capital Formation + Inventory Investment
b) Gross Business Fixed Investment + Gross Residential Construction Investment Gross Public Investment + Inventory Investment
c) Net Capital Formation + Consumption of Fixed Capital
d) All of these
Ans:- d)
Further Reading:-
| S.N | Topics |
| 1. | What is GDP Deflator |
| 2. | What are externalities in economics |
| 3. | Limitations of GDP as a measure of welfare |
| S.N | Topics |
| 1. | 150+ Numerical of Value Added Method |
| 2. | 150+ Numerical of Income Method |
| 3. | 150+ Numerical of Expenditure Method |
| 4. | 150+ Numerical of National Income and related aggregates |
| S.N | Topics |
| 1. | 250+ MCQs of National Income |
plz sir post next chapter MCQ plzzzzzzzzzzzzzzzzzzz