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 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 6 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Apakah sektor yang memberikan sumbangan tertinggi kepada KDNK pada tahun 2015 berdasarkan data yang diberikan? A) Perdagangan borong dan runcit. B) Pertanian. C) Utility. D) Harta tanah dan perkhidmatan perniagaan. Show Answer Correct Answer: D) Harta tanah dan perkhidmatan perniagaan. 2. Exam of Social security contributions in brunei is A) TAP. B) TAIB. C) BIBD. D) TBK. Show Answer Correct Answer: A) TAP. 3. Which of the following is true about current cost method and market value method? A) They are used by the BEA to place current values on foreign indirect investments. B) These methods lead to the same valuations. C) Based on the current cost method, the BEA's 2006 estimate of U.S. net foreign wealth was $ 2, 539.6 billion. D) Current cost method is preferred by the BEA. E) None of the above is true. Show Answer Correct Answer: C) Based on the current cost method, the BEA's 2006 estimate of U.S. net foreign wealth was $ 2, 539.6 billion. 4. In order to calculate national production value, GDP values the goods based on the market price. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 5. What are the three ways to calculate national income? A) Product method, expenditure method, and income method. B) GDP deflator, Consumer Price Index, and Wholesale Price Indices. C) Gross investment, net investment, and depreciation. D) Wages, profits, and rents. Show Answer Correct Answer: A) Product method, expenditure method, and income method. 6. Calculate GNP$_{MP}$ from the given data:Items-Rs (in crores)1. Interest-252. NFIA-(-)5 3. NIT-404. Royalty-55. Wages and salaries-2406. Depreciation-507. Profits-30 8. Rent-10 A) Rs.350 cr. B) Rs. 400 cr. C) Rs. 345 cr. D) Rs. 395 cr. Show Answer Correct Answer: D) Rs. 395 cr. 7. What is the main problem associated with the Product (Output) Method? A) Double Counting. B) Half Counting. C) No Counting. D) Triple Counting. Show Answer Correct Answer: A) Double Counting. 8. What is the Product (Output) Method used for in measuring National Income? A) Direct method of arriving at an estimate of a country's national output by adding the output figures of all firms. B) Method of calculating the profits of a company. C) Indirect method of calculating personal income for individuals. D) Method of measuring the GDP of a country. Show Answer Correct Answer: A) Direct method of arriving at an estimate of a country's national output by adding the output figures of all firms. 9. The sector providing labor to agriculture and industry sector A) Industry. B) Informal. C) Service. D) Agriculture. Show Answer Correct Answer: C) Service. 10. National income is the total income earned by a country's factors of production A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 11. Who all are normal citizens of india?1. An Indian girl studying in USA since 20192. A korean working in WHO office in delhi for 2 years3. An american diplomat working in india since 2017 4. Indian ambassador working in singapore A) 2. and 4. B) 1. 2. and 4. C) 2. 3. and 4. D) All of the above. Show Answer Correct Answer: B) 1. 2. and 4. 12. Net National Product (NNP) at factor cost is also called: A) Net Domestic Product. B) National Income. C) Gross Domestic Product. D) Personal Income. Show Answer Correct Answer: B) National Income. 13. What is the circular flow of income? A) The flow of money from households to firms. B) The flow of goods and services from firms to households. C) The flow of factor payments from firms to households. D) The flow of spending from households to firms and the flow of income from firms to households. Show Answer Correct Answer: D) The flow of spending from households to firms and the flow of income from firms to households. 14. Calculate NFIA when:Factor Income From abroad= Rs. 500Factor Income to abroad= Rs. 300 A) Rs. 800. B) Rs. 200. C) Rs. 500. D) None of the above. Show Answer Correct Answer: B) Rs. 200. 15. Assess the importance of considering income distribution when using GNP as an economic indicator. A) Very important. B) Irrelevant. C) Somewhat important. D) Not important. Show Answer Correct Answer: A) Very important. 16. Terjemahkan soalan ini ke dalam Bahasa Melayu A) Jumlah penduduk / KDNK. B) KDNK-Jumlah penduduk. C) KDNK * Jumlah penduduk. D) KDNK / Jumlah penduduk. Show Answer Correct Answer: D) KDNK / Jumlah penduduk. 17. Net indirect itax s included in which of the following? A) Compensation of employees. B) Private final consumption expenditure. C) Government Final expenditure. D) Operating surplus. Show Answer Correct Answer: C) Government Final expenditure. 18. What is Per Capita Income? A) Total income of the country. B) Total wealth of the country. C) National Income divided by the population. D) Average income of the richest citizens. Show Answer Correct Answer: C) National Income divided by the population. 19. Suppose you are tasked with creating a comprehensive economic plan to address unemployment and increase GDP. Which action would best demonstrate the synthesis of different national income accounting approaches? A) Implementing targeted tax cuts for specific industries. B) Increasing public-private partnerships for infrastructure projects. C) Introducing universal basic income for all citizens. D) Launching a national campaign to promote exports. Show Answer Correct Answer: B) Increasing public-private partnerships for infrastructure projects. 20. Evaluate the effectiveness of government stimulus packages in boosting economic growth during a recession. A) Increase in imports. B) No impact on economic growth. C) Positive impact on economic growth. D) Negative impact on economic growth. Show Answer Correct Answer: C) Positive impact on economic growth. 21. Output that is produce within and outside the country by local residence is called GNP. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 22. If a country's GDP is $ 600 billion and its citizens' income earned abroad is-$ 30 billion, what is the country's GNP? A) $ 630 billion. B) $ 570 million. C) $ 600 billion. D) $ 570 billion. Show Answer Correct Answer: D) $ 570 billion. 23. In open economies, A) Saving and investment are necessarily equal. B) As in a closed economy, saving and investment are not necessarily equal. C) Saving and investment are not necessarily equal as they are in a closed economy. D) Saving and investment are necessarily equal contrary to the case of a closed economy. E) None of the above. Show Answer Correct Answer: C) Saving and investment are not necessarily equal as they are in a closed economy. 24. The difference between value of output and value added is: A) Net indirect taxes. B) Intermediate consumption. C) Depreciation. D) NFIA. Show Answer Correct Answer: B) Intermediate consumption. 25. During which phase of the business cycle is unemployment typically at its lowest? A) Expansion. B) Peak. C) Contraction. D) Trough. Show Answer Correct Answer: B) Peak. 26. Are the following included in the compensation of employees?a) old-age pensionb) retirement pension A) Included; excluded. B) Excluded; excluded. C) Included; included. D) Excluded; included. Show Answer Correct Answer: D) Excluded; included. 27. The largest component of GNP is A) Investment. B) Government purchases. C) The current account. D) Trade. E) Consumption. Show Answer Correct Answer: E) Consumption. 28. What is the value of Gross National Income for the Philippines in 2020? A) Php 85, 000. B) Php 17.9 trillion. C) Php 19.3 trillion. D) Php 1.4 trillion. Show Answer Correct Answer: C) Php 19.3 trillion. 29. What does the Circular Flow of Income model represent? A) Flows of money, goods, and services between economic agents. B) Flows of water in an ecosystem. C) Flows of electricity in a city. D) Flows of air in the atmosphere. Show Answer Correct Answer: A) Flows of money, goods, and services between economic agents. 30. Accounting of National Income at constant prices is known as ..... A) Real income. B) Current income. C) Current income. D) Money income. Show Answer Correct Answer: A) Real income. 31. Which measure is used to account for changes in output without the influence of price fluctuations? A) Nominal GNP. B) Real GNP. C) Gross Domestic Product. D) Money GNP. Show Answer Correct Answer: B) Real GNP. 32. What is Real Income calculated using? A) Current price index. B) Current Nominal GNP. C) Base year index. D) All of the above. Show Answer Correct Answer: D) All of the above. 33. Each of the following items is a component of the income approach, EXCEPT ..... A) Imports. B) Rent. C) Salary/ wages. D) Net interest. Show Answer Correct Answer: A) Imports. 34. Final goods and services refer to: A) Goods and services that are unsold and therefore added to inventories. B) Goods and services whose value has been adjusted for changes in the price level. C) Goods and services purchased by ultimate users, rather than for resale or further processing. D) The excess of exports over imports. Show Answer Correct Answer: C) Goods and services purchased by ultimate users, rather than for resale or further processing. 35. It refers to the net MONEY value of all the final goods and services produced within the domestic territory of a country during a period of one year. A) GDP fc. B) NDP mp. C) GDP mp. D) NDP fc. Show Answer Correct Answer: D) NDP fc. 36. Which economic indicator is used to assess changes in output without price fluctuations? A) Gross Output. B) Real GNP. C) Nominal GNP. D) Money GNP. Show Answer Correct Answer: B) Real GNP. 37. Government purchases are defined as A) Only goods purchased by federal, state, or local governments. B) All goods and services purchased by the federal government. C) All goods and services purchased by the federal or state government. D) All goods and services purchased by the federal, state, or local government. E) Goods and services purchased from the government. Show Answer Correct Answer: D) All goods and services purchased by the federal, state, or local government. 38. Calculate Domestic Income by Income method from the given data:Items-Rs (in crores)1. Wages-502. Direct tax-5003. Transfer payments-1204. NFIA-10005. Social security contributions-606. Rent-107. Interest-208. Corporation tax-309. Dividend-3510. Undistributed profit-4011. Mixed-income-20 A) Rs. 385 cr. B) Rs. 445 cr. C) Rs. 365 cr. D) Rs. 425 cr. Show Answer Correct Answer: B) Rs. 445 cr. 39. What does the "X-M" component represent in the expenditure approach formula for GDP? A) Exports minus Taxes. B) Net Exports. C) Total Exports. D) Total Imports. Show Answer Correct Answer: B) Net Exports. 40. Net Value Added at Factor cost = A) Net Current Transfer from rest of the world. B) Sum of Current Payments. C) Sum of Factor Payments. D) Sum of Transfer Payments. Show Answer Correct Answer: C) Sum of Factor Payments. 41. The standard of living of the population of a country is indicated by changes in the ..... A) National income at current price data. B) Per capita income data. C) Net national income data. D) Net per capita income data. Show Answer Correct Answer: D) Net per capita income data. 42. In 2006, the United States had A) A balance in the current account. B) A deficit in the current account. C) From 2006 data, it is too difficult to determine whether a surplus or a deficit existed in the current account. D) A positive balance of net financial flows. E) A surplus in the current account. Show Answer Correct Answer: B) A deficit in the current account. 43. According to the text, what determines the economic wealth of a nation? A) The production process. B) The possession of natural resources. C) The level of consumption. D) The amount of income generated. Show Answer Correct Answer: A) The production process. 44. Which of the following is included in the Income Approach to measuring National Income? A) Wages and Salaries. B) Government Spending. C) Consumption. D) Net Exports. Show Answer Correct Answer: A) Wages and Salaries. 45. The concept of added value is the increased value created for a good after undergoing the production process. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 46. What does Real GNP adjust for when compared to Money GNP? A) Inflation. B) Government spending. C) Exchange rates. D) Interest rates. Show Answer Correct Answer: A) Inflation. 47. Provides factors of production and pays taxes. A) GOVERNMENT. B) HOUSEHOLD SECTOR. C) FIRM. D) REST OF THE WORLD. Show Answer Correct Answer: B) HOUSEHOLD SECTOR. 48. What is the problem of Less Sophisticated Machinery in calculating National Income? A) Limited availability of advanced computers or programs to compute national income data. B) Non-availability of advanced computers or programs to compute national income data. C) Abundance of advanced computers or programs to compute national income data. D) Availability of advanced computers or programs to compute national income data. Show Answer Correct Answer: B) Non-availability of advanced computers or programs to compute national income data. 49. Durable goods purchased by government for military purposes are? A) Non material goods. B) Intermediate goods. C) Final goods. D) Material goods. Show Answer Correct Answer: B) Intermediate goods. 50. Net National Product= A) Net domestic product (-) Depreciation. B) GNP (-) Depreciation. C) Gross domestic product (-) Depreciation. D) Per capita Income (-) Depreciation. Show Answer Correct Answer: B) GNP (-) Depreciation. 51. Income from sale of shares, bond and Debentures will not be included in National Income. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 52. Which of the following is likely to raise the value of national output/income? A) Rise in withdrawals matching the rise in injections. B) Rise in the combined value of investment, public expenditure and exports, injections unchanged. C) Rise in withdrawals falling short of the rise in injections. D) Rise in withdrawals exceeding the rise in injections. Show Answer Correct Answer: C) Rise in withdrawals falling short of the rise in injections. 53. Per capita real output product is best defined as: A) The market value of all final goods and services produced in an economy in current prices. B) The market value of all final goods and services produced in an economy in current prices. C) The market value of all final goods and services produced in an economy in current prices. D) The market value of all final goods and services produced in an economy in the prices of a given year divided by the population. Show Answer Correct Answer: D) The market value of all final goods and services produced in an economy in the prices of a given year divided by the population. 54. Measures national income as the total of all factor incomes:wages, rent, interest, and profit. A) Product (Output/Value Added) Method. B) Income (Factor Payment) Method. C) Expenditure Method. D) ALL OF THE ABOVE. Show Answer Correct Answer: B) Income (Factor Payment) Method. 55. Spending on capital equipment and inventories is referred to as: A) Consumption expenditure (C). B) Investment expenditure (I). C) Government expenditure (G). D) Expenditure on net exports (X-M). Show Answer Correct Answer: B) Investment expenditure (I). 56. When comparing national income across countries, the main problem is: A) Uniform tax policies. B) Differences in currency values and exchange rates. C) Similar living standards. D) Equal levels of industrialization. Show Answer Correct Answer: B) Differences in currency values and exchange rates. 57. A computation approach that adds up all the income received by owners of resources for the services of their help in the production process each year A) Value Added Approach. B) Industry Origin Approach. C) Factor Income Approach. D) Final Expenditure Approach. Show Answer Correct Answer: C) Factor Income Approach. 58. Sector such as electricity, government services, retail, and restaurant is known as what sector? A) Secondary sector. B) Tertiary sector. C) Primary sector. D) None of the above. Show Answer Correct Answer: B) Tertiary sector. 59. What does the net exports component represent in the expenditure approach of National Income Accounting? A) Imports minus Exports. B) Exports minus Imports. C) Total Exports. D) Total Imports. Show Answer Correct Answer: B) Exports minus Imports. 60. Disposable income is obtained by: A) Personal income-Personal taxes. B) NNP-Subsidies. C) National income-Depreciation. D) GDP-Indirect taxes. Show Answer Correct Answer: A) Personal income-Personal taxes. ← 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 3Class 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 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