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1. Which of the following is the correct term for calculating National Income at the market prices?
A. Money income
B. Non-monetary income
C. Real income
D. None of the above
ANSWER: A.Money income
SOLUTION :The correct term for calculating national income at market prices is “money income”. National income is the total value of all the goods and services produced in an economy over a specific period, typically a year. It measures a country’s economic activity and the economic well-untry.
2. Which of the following is a method to measure the National Income?
A. Expenditure method
B. Income method
C. Product method
D. All of the above
ANSWER:D.All of the above
SOLUTION:
The different methods of measuring National Income includes Income Method, Production (Value-Added) Method and Expenditure Method.
3. Which of the following is the correct term for calculating National Income at constant prices?
A. Current income
B. Domestic income
C. Real income
D. None of the above
ANSWER : C.Real income
SOLUTION:
The correct answer is Real income. Key Points. National income. The total value of final goods and services produced by the normal residents during an accounting year, after adjusting depreciation.
4. Which of the following items are not included while measuring the Gross National Product?
A. Illegal and leisure activities
B. Purely financial transactions
C. Transferring of used goods and non-market goods and services
D. All of the above
ANSWER: D.All of the above
SOLUTION:
All of the above
5. Which of the following is the employment theory related to?
A. Macroeconomics
B. Static economics
C. Microeconomics
D. None of the above
ANSWER: A.Macroeconomics
SOLUTION:
Employment theory is related to Macro economics.
6. The difference between the National Income and the Net National Product at market price is known as _______.
A. National debt transfer
B. Current transfers from the rest of the world
C. Net indirect taxes
D. All of the above
ANSWER: C.Net indirect taxes
SOLUTION:
The difference between national income and net national product (NNP) at market price is the amount of net indirect taxes (NIT).
7. Which of the following is not a part of the National Income?
A. Undistributed profits
B. Income from government expenditure
C. The interest amount on the unproductive national debt
D. The payments made by a household to a firm for purchasing goods and services
ANSWER: C.The interest amount on the unproductive national debt
SOLUTION :
National income doesn’t include interest on the unproductive national debt. National income defines the value of goods and services produced by any country in the period of a financial year.
8. Which of the following is another term for the Net National Product at factor cost?
A. Personal Income
B. National Income
C. Gross National Product
D. Net Domestic Product
ANSWER: B.National Income
SOLUTION:
It is also known as national income. Net National Product at Factor cost is the purest form of income of a country.
9. Which of the following organisations calculate the Gross Domestic Product in India?
A. Reserve Bank of India
B. Indian Statistical Institute
C. National Statistical Office
D. None of the above
ANSWER: C.National Statistical Office
SOLUTION:
In India the entire responsibility of calculating the GDP is with the Central Statistics Office under the Ministry of Statistics and Program.
10. The primary sector within a country for the calculation of National Income includes __________.
A. Small scale industries
B. Retail trading
C. Agriculture
D. All of the above
ANSWER: D.All of the above
SOLUTION:
All of the above.