This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Economics Macro Economics > Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 3 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Evaluate the impact of an increase in government borrowing on the economy's GDP. A) Decrease in GDP. B) Increase in GDP. C) No impact on GDP. D) Increase in exports. Show Answer Correct Answer: A) Decrease in GDP. 2. National income equals GNP A) Less depreciation, less net unilateral transfers. B) Plus depreciation, less net unilateral transfers. C) Less depreciation, plus net unilateral transfers. D) Less depreciation or net unilateral transfers. E) Plus depreciation, plus net unilateral transfers. Show Answer Correct Answer: C) Less depreciation, plus net unilateral transfers. 3. One use of national income data is to: A) Measure the level of economic development. B) Increase inflation automatically. C) Eliminate unemployment immediately. D) Reduce population growth directly. Show Answer Correct Answer: A) Measure the level of economic development. 4. The most appropriate measure of a country's economic growth is A) Per capita real income. B) GNP. C) GDP. D) NDP. Show Answer Correct Answer: A) Per capita real income. 5. How is Gross Domestic Product defined? A) Total population of a country. B) Total government spending. C) Total land area of a country. D) Indicator of the overall output or production of an economy. Show Answer Correct Answer: D) Indicator of the overall output or production of an economy. 6. National income statistics help governments to: A) Plan economic policies. B) Control weather changes. C) Increase the birth rate. D) Guarantee equal income for all. Show Answer Correct Answer: A) Plan economic policies. 7. One of the problem regarding the calculation of national income is A) Unemployment. B) Deficit balance of payments. C) Inflation. D) Double counting. Show Answer Correct Answer: D) Double counting. 8. What is the main problem associated with the product method of calculating national income? A) Inadequate data. B) Double counting. C) Lack of expertise. D) Illiteracy. Show Answer Correct Answer: B) Double counting. 9. How would an increase in exports and a decrease in imports affect the net exports component in the expenditure approach of GDP calculation? A) No change in net exports. B) Increase net exports. C) Decrease net exports. D) Increase imports. Show Answer Correct Answer: B) Increase net exports. 10. Real GNP adjusts for which of the following factors? A) Inflation. B) Unemployment. C) Population growth. D) Interest rates. Show Answer Correct Answer: A) Inflation. 11. ..... are defined at a particular point of time. A) Stocks. B) Flow. C) All the above. D) None of the above. Show Answer Correct Answer: A) Stocks. 12. Calculate Gross National Disposable Income from the following data:(Rs. In Crores) (1) National income 2000 (2) Net current transfer from rest of the world 200 (3) Consumption of fixed capital 100 (4) Net factor income from abroad (-)50 (5) Net indirect taxes 250 A) 2550 crore. B) 2600. C) 2500 crore. D) 2700. Show Answer Correct Answer: A) 2550 crore. 13. Border workers of india going to Nepal daily for work is a part A) Normal residents of india. B) Non residents of India. C) Nirmal residents of Nepal. D) All of these. Show Answer Correct Answer: A) Normal residents of india. 14. Which of the following is a final expenditure? A) Vegetables purchased by a restaurant. B) Milk purchased by a tea-maker. C) Car purchased by a household. D) Car purchased by a dealer. Show Answer Correct Answer: C) Car purchased by a household. 15. Is 'production for self-consumption by farmer' included in estimating a country's national income? A) Included. B) Not included. C) Cannot determine. D) Partially included. Show Answer Correct Answer: A) Included. 16. Transfer payments are not included in the calculation of national income because ..... A) Transfer payment are a source of income from unproductive factors. B) Transfer payment are not included in production costs. C) Transfer payments are a source of personal income. D) This will avoid the problem of double counting. Show Answer Correct Answer: A) Transfer payment are a source of income from unproductive factors. 17. Net National Product equals: A) Gross Domestic Product plus net property income from abroad. B) Gross Domestic Product adjusted for inflation. C) Gross National Product adjusted for inflation. D) Gross National Product minus depreciation. Show Answer Correct Answer: D) Gross National Product minus depreciation. 18. Match the following and choose the correct option:(I).car purchased by a travel agency A) Consumption Good (II). sugar purchased by household (B). Intermediate Good (III) sugarcane purchased by sugar mill (C). Capital Good A) I (A), II (B) And III(C). B) I (C), II (A) And III(B). C) I (A), II (C) And III(B). D) I (B), II (C) And III(C). Show Answer Correct Answer: B) I (C), II (A) And III(B). 19. Which of the following is counted in Gross Domestic Product (GDP)? A) Leisure time. B) Consumer spending. C) Illegal production. D) Household production. Show Answer Correct Answer: B) Consumer spending. 20. Food allowances for factory employees ..... A) Charity allowance. B) Scholarships for undergraduates. C) Allowances for housewives. D) Food allowances for factory employees. Show Answer Correct Answer: D) Food allowances for factory employees. 21. A computation approach that adds up all the expenses of the end-users of the output produced in a given year A) Pie Added Approach. B) Final Expenditure Approach. C) Industry Origin Approach. D) Factor Income Approach. Show Answer Correct Answer: B) Final Expenditure Approach. 22. Total market value of all final goods and services produced by the RESIDENTS of a country during a given period of time. A) Gross Domestic Product. B) Gross National Income. C) Gross Per Capita Income. D) Gross National Product. Show Answer Correct Answer: D) Gross National Product. 23. Unpaid activities such as housewife works example like washing, cleaning and childminding are NOT included in the calculation of national income. A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 24. Export and import of a country is counted under which head while estimating national income? A) Output head. B) Income head. C) Tax head. D) Expenditure head. Show Answer Correct Answer: D) Expenditure head. 25. Which problem arises due to people underestimating their income to avoid paying higher taxes? A) Problem of False Information. B) Problem of Non-monetized sector. C) Problem of Multi-occupations. D) Problem of Double Counting. Show Answer Correct Answer: A) Problem of False Information. 26. In measuring the value of production, GDP values then during a certain time frame only. Usually, the period is every six months or three years. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 27. GNP is divided into four possible uses for which a country's final output is purchased: A) Consumption, investment, government purchases, and the current account balance. B) Salaries and wages, rent, interest, and profits. C) Total national income, sales taxes, depreciation, and net foreign factor income. D) Government purchases, corporate investment, exports, imports. Show Answer Correct Answer: A) Consumption, investment, government purchases, and the current account balance. 28. Which of the following must be added to obtain the personal income given the nationalincome? A) Income tax. B) Corporate profit. C) Indirect tax. D) Transfer payment. Show Answer Correct Answer: D) Transfer payment. 29. In the example given, what is the total value of production in the economy? A) Rs 150. B) Rs 250. C) Rs 200. D) Rs 100. Show Answer Correct Answer: C) Rs 200. 30. The economist who popularized the terms 'micro' and 'macro': A) Benham. B) Ragnar Frisch. C) Keynes. D) Samuelsson. Show Answer Correct Answer: B) Ragnar Frisch. 31. Which of the following is a flow? A) Deposits in a bank. B) Depreciation. C) Wealth. D) Capital. Show Answer Correct Answer: B) Depreciation. 32. Ireland's remarkable spurt of GDP growth between 2014 and 2015 was A) In large part an accounting phenomenon reflecting tax avoidance by large multinationals from other countries. B) Because of a sudden upsurge in Ireland's available supplies of factories, land, and labor. C) Due to massive increase in factors of production. D) Thanks to innovation and job creation. Show Answer Correct Answer: A) In large part an accounting phenomenon reflecting tax avoidance by large multinationals from other countries. 33. 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. Show Answer Correct Answer: C) Both (a) and (b). 34. Which of the following is not in intermediate goods for a farmer? A) Seeds. B) Fertilizers. C) Tractor. D) All of these. Show Answer Correct Answer: C) Tractor. 35. Personal income is the real income earned by a household after they have paid their personal income tax. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 36. If a country experiences an increase in personal income taxes, how would it affect the income approach calculation of national income? A) Decrease in GDP. B) No change in national income. C) Decrease in national income. D) Increase in national income. Show Answer Correct Answer: C) Decrease in national income. 37. Government spending is included in which approach to National Income Accounting? A) Expenditure Approach. B) Industrial Origin Approach. C) Income Approach. D) Factor Approach. Show Answer Correct Answer: A) Expenditure Approach. 38. All producer Goods are not Capital Goods. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 39. The CA is equal to A) Y-(C-I + G). B) Y + (C + I + G). C) Y-(C + I + G). D) Y-(C + I-G). E) None of the above. Show Answer Correct Answer: A) Y-(C-I + G). 40. The value of national output produced by residents of a country, whether located at home or overseas, after depreciation and excluding the influence of taxes and subsidies, is known as: A) NDP at factor cost. B) NDP at market price. C) NNP at market price. D) NNP at factor cost. Show Answer Correct Answer: D) NNP at factor cost. 41. It is not an example of transfer payment A) Government provides students allowance. B) Government provide pension to age above 60. C) Government provide unemployment benefits. D) Government provide street lightning. Show Answer Correct Answer: D) Government provide street lightning. 42. Factor income refers to A) Income earned through productive activities. B) Income earned through illegal activities. C) Income earned as a gift from a friend. D) All of these. Show Answer Correct Answer: A) Income earned through productive activities. 43. What does GDP stand for? A) Gross Development Product. B) Gross Domestic Performance. C) Gross Domestic Profit. D) Gross Domestic Product. Show Answer Correct Answer: D) Gross Domestic Product. 44. Value of final goods and services estimated at prevailing market price is known as A) Money national income. B) Real national income. C) Net value added. D) Net national income. Show Answer Correct Answer: A) Money national income. 45. Apakah kaedah yang digunakan untuk mengira sumbangan pelbagai sektor kepada KDNK? A) Kaedah pendapatan. B) Kaedah pengeluaran. C) Kaedah perbelanjaan. D) Kaedah output. Show Answer Correct Answer: A) Kaedah pendapatan. 46. The total value of products & services produced within the territorial boundary of a country A) Net Export. B) National Income. C) GNP. D) GDP. Show Answer Correct Answer: D) GDP. 47. In 1929, government purchases accounted for A) Only 8.5 percent of U.S. GNP. B) 28.5 percent of U.S. GNP. C) 38.5 percent of U.S. GNP. D) 48.5 percent of U.S. GNP. E) Only 18.5 percent of U.S. GNP. Show Answer Correct Answer: A) Only 8.5 percent of U.S. GNP. 48. Compare and contrast GNP and GDP as measures of a country's economic performance. A) GNP includes income earned abroad; GDP does not. B) GDP includes net exports; GNP does not. C) GDP includes income earned abroad; GNP does not. D) GNP includes government spending; GDP does not. Show Answer Correct Answer: A) GNP includes income earned abroad; GDP does not. 49. GDP is different than GNP in that A) It accounts for net unilateral transfers. B) It does not account for indirect business taxes. C) It does not account for a country's production using services with foreign-owned capital. D) It accounts for depreciation. E) None of the above. Show Answer Correct Answer: C) It does not account for a country's production using services with foreign-owned capital. 50. The value of national income adjusted for inflation is called A) Per capita income. B) Disposable income. C) Inflation rate. D) Real national income. Show Answer Correct Answer: D) Real national income. 51. The national income estimation is the responsibility of A) Central Statistical Organisation. B) NSSO. C) National Income Committee. D) Finance Ministry. Show Answer Correct Answer: A) Central Statistical Organisation. 52. Of the following, which is included in the calculation of national income? A) Interest paid to the holder of a government guarantee letter. B) Increased value of a house due to inflation. C) The value of accommodation paid by an employer as part of anemployee's wages. D) Prize money of RM10 000 awarded as sales incentive. Show Answer Correct Answer: C) The value of accommodation paid by an employer as part of anemployee's wages. 53. GNP at MP = ..... A) GDP at Market Price-Depreciation. B) GDP at MP + Depreciation. C) GDP at MP + Net factor income from abroad. D) None. Show Answer Correct Answer: A) GDP at Market Price-Depreciation. 54. What is National Income Accounting? A) A method of preparing and presenting national income accounts based on the principle of double entry system of business accounting. B) A method of calculating personal income for individuals. C) A method of measuring the GDP of a country. D) A method of calculating the profits of a company. Show Answer Correct Answer: A) A method of preparing and presenting national income accounts based on the principle of double entry system of business accounting. 55. Purchase of machine for resale is A) Intermediate good. B) Sometimes intermediate sometimes final. C) Neither Final nor Intermediate. D) Final Good. Show Answer Correct Answer: A) Intermediate good. 56. The purchase of goods and services produced by firms, individuals or households is ..... A) Government spending. B) Net exports. C) Personal consumption. D) Investment. Show Answer Correct Answer: C) Personal consumption. 57. Net national product at market price is equal to net national product at factor cost when ..... A) Indirect taxed less subsidies equal zero. B) Depreciation is zero. C) Net factor income from abroad is zero. D) Net exports are zero. Show Answer Correct Answer: A) Indirect taxed less subsidies equal zero. 58. What is the purpose of the income method of measuring national income? A) To measure incomes generated by production. B) To estimate exports and imports. C) To analyze stock market trends. D) To calculate government expenditure. Show Answer Correct Answer: A) To measure incomes generated by production. 59. National income measured at current prices. A) Nominal National Income. B) Net National product. C) Personal Income. D) Real National Income. Show Answer Correct Answer: A) Nominal National Income. 60. "The total final value of goods and services provided by factors of production owned by citizens of the nation, regardless of where they are located, within one year" A) Gross national product (GNP). B) Net national product (NNP). C) Gross domestic product (GDP). D) National Income (NI). Show Answer Correct Answer: A) Gross national product (GNP). ← PreviousNext →Related QuizzesCommerce QuizzesClass 12 QuizzesClass 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 1Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 2Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 4Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 5Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 6Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 7Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 8Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books