Q 1 – GNP at MP = ______
(A) GDPMP – Depreciation
(B) GDPMP + Depreciation
(C) GDPMP ÷ Depreciation
(D) GDPMP + Net factor income from abroad
Ans. (A) GDPMP – Depreciation
Q 2 – NDPMP = ________
(A) GDPMP – Depreciation
(B) GDPFC + Net factor income from abroad
(C) NNPFC + Net indirect taxes
(D) All of these
Ans. (A) GDPMP – Depreciation
Q 3 – NNPMP = ________
(A) GNPMP – Depreciation
(B) NDPMP + Net factor income from abroad
(C) NNPFC + Net indirect taxes
(D) All of these
Ans. (D) All of these
Q 4 – GDPFC =
(A) GDPMP – Net indirect taxes
(B) GDPMP + Net indirect taxes
(C) GDPMP + Subsidies
(D) GDPMP – Indirect taxes
Ans. (A) GDPMP – Net indirect taxes
Q 5 – NDPFC =
(A) GDPFC – Indirect taxes
(B) GDPFC – Depreciation
(C) GDPFC + Economic subsidy
(D) All of these
Ans. (B) GDPFC – Depreciation
Q 6 – NNPFC =
(A) GNPFC – Depreciation
(B) NNPMP + Economic subsidy – Indirect taxes
(C) NDPMP + Net factor income from abroad
(D) All of these
Ans. (D) All of these
Q 7 – Which of the following is the method of measuring National Income?
(A) Income method
(B) Product method
(C) Expenditure method
(D) All of these
Ans. (D) All of these
Q 8 – Why are the intermediate goods not included in the National Income while measuring National Income?
(A) To avoid double accounting
(B) It decreases income
(C) Intermediate goods are not good
(D) All of these
Ans. (A) To avoid double accounting
Q 9 – Who had made the first attempt at National Income Accounting?
(A) Prof. D.R.Gadgill
(B) Simon Kuznets
(C) J.M.Keynes
(D) Gregory King
Ans. (D) Gregory King
Q 10 – Calculation of National Income at Market Prices is known as _________
(A) Money income
(B) Real income
(C) Non-monetary income
(D) None of these
Ans. (A) Money income
Q 11 – Accounting of National Income at constant prices is known as ________
(A) Money income
(B) Real income
(C) Current income
(D) Domestic income
Ans. (B) Real income
Q 12 – Which of the following items are excluded from GNP measurement?
(A) Purely financial transactions
(B) Transfer of used goods and non-market goods and services
(C) Illegal activities and the value of leisure
(D) All of these
Ans. (D) All of these
Q 13 – The subject of the Study of Macro Economics is:
(a) The Principle of National Income
(b) The Principle of Consumer
(c) The Principle of Producer
(d) None of these
Ans. (a) The Principle of National Income
Q 14 – Macro Economics Studies:
(a) Employment opportunities in the economy
(b) Theory of supply of Commodities
(c) Elasticity of demand in Scooter
(d) Price of wheat in the market
Ans. (a) Employment opportunities in the economy
Q 15 – General Price Level is studied in:
(a) Micro Economics
(b) Macro Economics
(c) Both (a) and (b)
(d) None of these
Ans. (b) Macro Economics
Q 16 – Employment Theory is related to :
(a) Static Economics
(b) Micro Economics
(c) Macro Economics
(d) None of these
Ans. (c) Macro Economics
Q 17 – Increase in Stock of Capital is known as:
(a) Capital Loss
(b) Capital Profit
(c) Capital Formation
(d) None of these
Ans. (c) Capital Formation
Q 18 – Which of the following is sPktock ?
(a) Wealth
(b) Saving
(c) Export
(d) Profit
Ans. (a) Wealth
Q 19 – Which one of the following is included in circular flow?
(a) Real Flow
(b) Money Flow
(c) Both (a) and (b)
(d) None of these
Ans. (c) Both (a) and (b)
Q 20 – Which one of the following is included in ‘Stock’?
(a) Quantity of Money
(b) Wealth
(c) Quantity of wheat stored in a warehouse
(d) All the above
Ans. (d) All the above
Q 21 – Which one is included inflow ?
(a) Consumption
(b) Investment
(c) Income
(d) All of these
Ans. (b) Investment
Q 22 – Which of the following is included in real flow?
(a) Flow of Goods
(b) Flow of Services
(c) Both (a) and (b)
(d) None of these
Ans. (c) Both (a) and (b)
Q 23 – Which services are provided by families to a firm?
(a) Land
(b) Labour
(c) Capital and Enterprises
(d) All the above
Ans. (d) All the above
Q 24 – Which one is included in the three-sector model?
(a) Family
(b) Firm
(c) Government
(d) All of these
Ans. (d) All of these
Q 25 – Which one is included in the four-sector model?
(a) Family, Firm, Industry
(b) Family, Firm, Government
(c) Family, Firm, Government, Foreign Sector
(d) None of the above
Ans. (c) Family, Firm, Government, Foreign Sector
Q 26 – Which is the equilibrium condition of circular flow in the four sector model?
(a) C + I
(b) C + I + G
(c) C + I + G + (X-M)
(d) None of these
Ans. (c) C + I + G + (X-M)
Q 27 – The primary sector includes:
(a) Agriculture
(b) Retail trading
(c) Small Industries
(d) All the these
Ans. (d) All the these
Q 28 – For a four sector or open economy the condition for equilibrium is:
(a) Savings + taxes + Imports = Investment + govt, expenditure + exports
(b) Total Leakages = Total Injections
(c) Aggregate output = Aggregate Expenditure
(d) All of these
Ans. (d) All of these
Q 29 – Which service is included in Tertiary Sector?
(a) Mining
(b) Construction
(c) Communication
(d) Animal Husbandry
Ans. (c) Communication
Q 30 – Which of the following is not flow?
(a) Capital
(b) Income
(c) Investment
(d) Depreciation
Ans. (a) Capital
Q 31 – The market price of all final goods of a country in a year is known as:
(a) GDPMP
(b) GDPFC
(c) NNPFC
(d) None of these
Ans. (a) GDPMP
Q 32 – Which one is true?
(a) GNP = GDP + Depreciation
(b) NNP = GNP + Depreciation
(c) NNP = GNP – Depreciation
(d) GNP = NNP – Depreciation
Ans. (c) NNP = GNP – Depreciation
Q 33 – GNPMp =?
(a) GDPMp – Depreciation
(b) GDPMp + Net Factor Income from Abroad
(c) GNPMp + Subsidy
(d) None of the above
Ans. (b) GDPMp + Net Factor Income from Abroad
Q 34 – NNPMP = ?
(a) GNPMp – Depreciation
(b) GNPMp + Depreciation
(c) GNPMp + Indirect Tax
(d) None of the above
Ans. (a) GNPMp – Depreciation
Q 35 – Depreciation expenses are included in:
(a) GNPMp
(b) NNPMp
(c) NNPFC
(d) None of these
Ans. (a) GNPMp
Q 36 – NDPFC = ?
(a) NDPMP – Indirect Tax
(b) GNPMP – Indirect Tax + Subsidy
(c) NDPMP – Subsidy
(d) NDPMF – Depreciation
Ans. (b) GNPMP – Indirect Tax + Subsidy
Q 37– Net National Income at Factor Cost is called?
(a) National Income
(b) Gross Investment
(c) Domestic Income
(d) None of these
Ans. (a) National Income
Q 38 – Which one is included in National Income?
(a) Rent, Wage, Interest
(b) Rent, Wage, Salary
(c) Rent, Profit, Interest
(d) Rent, Wage, Salary, Interest, Profit
Ans. (d) Rent, Wage, Salary, Interest, Profit
Q 39 – What is the consumption of fixed capital called?
(a) Capital formation
(b) Depreciation
(c) Investment
(d) All of these
Ans. (b) Depreciation
Q 40 – Which of the following is correct?
(a) Disposable Income = Personal Income – Direct Taxes
(b) Disposable Income = Private Income – Direct Taxes
(c) Disposable Income = Personal Income – Indirect Taxes
(d) Disposable Income = Private Income – Indirect Taxes
Ans. (a) Disposable Income = Personal Income – Direct Taxes