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 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 7 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Calculate net value added at market price of a firm:-(Amount in thousands) i. Value of output 400 ii. Change in stock 50 iii.Depreciation 20 iv. Net in direct taxes 25v. Intermediate cost 200 vi. Export 10 A) Rs. 170 Lakhs. B) Rs. 200 Lakhs. C) Rs. 180 Lakhs. D) Rs. 175 Lakhs. Show Answer Correct Answer: C) Rs. 180 Lakhs. 2. ..... will not pass through any more stages of production. A) Intermediate. B) Final. C) All the above. D) None of the above. Show Answer Correct Answer: B) Final. 3. The market value of the net output of final goods and services produced by a nation during a year. A) Per Capita Income. B) Nominal National Income. C) Real National Income. D) Net National Product. Show Answer Correct Answer: D) Net National Product. 4. Financial help to a flood victim comes under A) Factor payment. B) Transfer payment. C) Both. D) None of these. Show Answer Correct Answer: B) Transfer payment. 5. The value of Net national product at consume A) GNP at factor cost. B) GNP at market price. C) NNP at market price. D) Gross national product. Show Answer Correct Answer: C) NNP at market price. 6. Goods purchased for satisfaction of wants A) Capital Goods. B) Intermediate Goods. C) Consumption goods. D) Final Goods. Show Answer Correct Answer: C) Consumption goods. 7. What does Real GDP overcome the shortcomings of Nominal GDP by? A) Eliminating price changes from the indicator. B) Considering only the service sector. C) Focusing on international trade. D) Including only government spending. Show Answer Correct Answer: A) Eliminating price changes from the indicator. 8. What is the best way to avoid the problem of double counting in national income calculations? A) Exclude all final goods and services. B) Include all intermediate goods in the calculations. C) Calculate only the value of all final goods and services. D) Include all raw materials in the calculations. Show Answer Correct Answer: C) Calculate only the value of all final goods and services. 9. Which of the following is NOT a Phase? A) Neutral. B) Peak. C) Trough. D) Contraction. E) Expansion. Show Answer Correct Answer: A) Neutral. 10. NDP at factor cost = A) Net domestic product at market price-indirect tax. B) Net Domestic product at market price + Depreciation. C) Net Domestic Product at market price+ Subsidies. D) Net Domestic Product at market price at market price-Net indirect tax. Show Answer Correct Answer: D) Net Domestic Product at market price at market price-Net indirect tax. 11. In a closed economy, ..... is not included. A) Household. B) Foreign sector. C) Firms. D) Government. Show Answer Correct Answer: B) Foreign sector. 12. Calculate Value Added at factor cost from the following. ITEMS Rs. CRORES a. Purchase of raw materials 30 b. Depreciation 12 c. Sales 200 d. Excise tax 20 e. Opening stock 15 f. Intermediate consumption 48 g. Closing stock 10 A) 134 crore. B) 130 crore. C) 125 crore. D) 127 crore. Show Answer Correct Answer: D) 127 crore. 13. The net contribution added made by a firm is called ..... A) Value added. B) Change in output. C) Sales. D) None of the above. Show Answer Correct Answer: A) Value added. 14. Income that is actually received by individuals and households in an economy in a year is ..... A) Value added. B) Nominal national income. C) Personal income. D) Transfer payments. Show Answer Correct Answer: C) Personal income. 15. The services British capital provides in Spain are a service export from Britain, A) Therefore they are subtracted from British GDP in calculating British GNP. B) Therefore they are added to Spanish GDP in calculating Spanish GDP. C) Therefore they are added to British GDP in calculating British GNP. D) Only A and B. E) None of the above. Show Answer Correct Answer: C) Therefore they are added to British GDP in calculating British GNP. 16. The root of economic problem A) Scarcity. B) Ends. C) Means. D) Greed. Show Answer Correct Answer: A) Scarcity. 17. Aggregate demand is the sum of ..... A) C+I+G+(M-X). B) C+I+G. C) C+I+X. D) C+I+G+(X-M). Show Answer Correct Answer: D) C+I+G+(X-M). 18. What is the product or value added method used to calculate? A) Aggregate income. B) Aggregate production. C) Aggregate savings. D) Aggregate expenditure. Show Answer Correct Answer: B) Aggregate production. 19. Which of the following is a limitation of national income accounting? A) It includes net exports in GDP. B) It measures only the value of goods and services produced. C) It ignores income distribution, environmental costs, and non-market activities. D) None of the above. Show Answer Correct Answer: C) It ignores income distribution, environmental costs, and non-market activities. 20. Which of the following is not a component of national income? A) Profits. B) Wages and salaries. C) Net interest. D) Indirect business tax. Show Answer Correct Answer: D) Indirect business tax. 21. Income per capita = Personal Income / Population A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 22. According to the fundamental identity of national income accounting, A) Total production = total income = total expenditure. B) Y = C + I + G + NX. C) S = (Y + NFP-T + TR + INT)-C. D) GDP = GNP-NFP. Show Answer Correct Answer: B) Y = C + I + G + NX. 23. Investment is usually A) It is hard to tell from the data whether investment is more or less variable than consumption. B) A larger component of the GNP than consumption. C) As variable as consumption. D) More variable than consumption. E) Less variable than consumption. Show Answer Correct Answer: D) More variable than consumption. 24. We use 'value added' in the output method to avoid double counting. A) False. B) True. C) All the above. D) None of the above. Show Answer Correct Answer: B) True. 25. Which one of the following is NOT included in National Income? A) Wages. B) Old age pension. C) Bonus. D) Salary. Show Answer Correct Answer: B) Old age pension. 26. Calculate National Income from the given data:Items-Rs (in crores)1. Private income-10002. Interest on the national debt-303. Current transfers of govt. administrative departments-204. Current transfer from rest of the world-155. Income from property and entrepreneurship accruing to govt. enterprises-10 6. Savings of non-departmental govt. enterprises-5 A) Rs. 965 cr. B) Rs. 955 cr. C) Rs. 960 cr. D) Rs. 950 cr. Show Answer Correct Answer: D) Rs. 950 cr. 27. The product value of Japanese firms operating in Malaysia is included in the calculation A) Japan's Gross Domestic Product. B) Malaysia's Gross Domestic Product. C) Malaysia's Gross Domestic Product and Gross National Product. D) Japan's Gross Domestic Product and Gross National Product. Show Answer Correct Answer: B) Malaysia's Gross Domestic Product. 28. Who expressed the view that economics is neutral between ends? A) Adam Smith. B) Marshall. C) Samuelson. D) Robbins. Show Answer Correct Answer: C) Samuelson. 29. Refer as Gross National Product minus depreciation. A) Gross Domestic Product. B) Personal Income. C) Per Capita Income. D) Net National Product. Show Answer Correct Answer: D) Net National Product. 30. If a country's GDP is $ 800 billion and its citizens' income earned abroad is $ 50 billion, what is the country's GNP? A) $ 800 billion. B) $ 850 million. C) $ 850 billion. D) $ 750 billion. Show Answer Correct Answer: C) $ 850 billion. 31. Who is considered as the father of economics? A) Adam Smith. B) Marshall. C) Pigou. D) Samuel. Show Answer Correct Answer: A) Adam Smith. 32. If there is a decrease in household savings and an increase in business investments, how would it impact GDP calculated using the income approach? A) Increase in exports. B) Decrease in national income. C) No change in national income. D) Increase in national income. Show Answer Correct Answer: D) Increase in national income. 33. What must be added to the domestic factor income to avail national income? A) Net factor Income from abroad. B) NIT. C) Depreciation. D) Transfer Payment. Show Answer Correct Answer: A) Net factor Income from abroad. 34. NATIONAL INCOME 1. Real flow is the flow of- A) Goods only. B) Money only. C) Services only. D) Goods and services. Show Answer Correct Answer: D) Goods and services. 35. Gross Investment= 7000Net Investment= 5000calculate Depreciation. A) 2000. B) -2000. C) 1000. D) 12000. Show Answer Correct Answer: A) 2000. 36. Which of the following is an example of a non-market activity that is not included in GNP calculations? A) Volunteer work. B) Sales of goods and services. C) Investment in stocks. D) Government expenditures. Show Answer Correct Answer: A) Volunteer work. 37. Total income received by all economic agents in economy based on goods and services produced in the economy in a certain period of time. A) Gross Domestic Income. B) National Income. C) Personal Income. D) Gross National Income. Show Answer Correct Answer: B) National Income. 38. Year $ of computers quantity $ of watches quantity2003 $ 5 10 $ 5 10 2004 $ 10 12 $ 6 132005 $ 15 15 $ 8 12In this economy composed of two goods (computers and watches), what is the Nominal GDP for the Year 2005? A) $ 252. B) $ 344. C) $ 321. D) $ 264. Show Answer Correct Answer: C) $ 321. 39. Domestic income indicates A) NNP at MP. B) NNP at FC. C) NDP at MP. D) NDP at FC. Show Answer Correct Answer: D) NDP at FC. 40. Which of the following best describes the term 'economic recession'? A) A period of declining GDP and rising unemployment. B) A period of stable GDP and stable unemployment. C) A period of rapid economic growth and low inflation. D) A period of high inflation and low unemployment. Show Answer Correct Answer: A) A period of declining GDP and rising unemployment. 41. The total value of Goods and Services produced by all nationals of a country (whether within or outside the country) A) GNP. B) Net Export. C) GDP. D) National Income. Show Answer Correct Answer: A) GNP. 42. Factor income paid abroad is the income received by citizens of a nation for the use of factors of production. A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: B) No. 43. Which of the following is a stock A) Profits. B) Savings. C) Wealth. D) Exports. Show Answer Correct Answer: C) Wealth. 44. What is the main conclusion about the relationship between spending and income in an economy? A) Spending and income are independent of each other. B) Spending leads to a decrease in income. C) Spending leads to an increase in income. D) Spending has no impact on income. Show Answer Correct Answer: C) Spending leads to an increase in income. 45. Disposable income (Yd) is the personal income ..... A) After the deduction indirect tax. B) Before the deduction indirect tax. C) Before the deduction of personal income tax. D) After the deduction of personal income tax. Show Answer Correct Answer: D) After the deduction of personal income tax. 46. Which of the following is a component of GNP? A) Government spending. B) Private savings. C) Household consumption. D) All of the above. Show Answer Correct Answer: D) All of the above. 47. A higher GDP per capita may not mean that the quality of life has really improved because: A) It measures wealth not income. B) It is only measured every five years. C) It does not measure the quality of the items produced. D) It measures Gross Domestic Product. Show Answer Correct Answer: C) It does not measure the quality of the items produced. 48. The process of buying personal goods and service to answer needs and wants A) Net Export. B) Investment. C) Consumption. D) Government Expenditure. Show Answer Correct Answer: C) Consumption. 49. Which component is not included in the calculation of GDP using the expenditure approach? A) Government Spending. B) Consumption. C) Investment. D) Savings. Show Answer Correct Answer: D) Savings. 50. The Circular Flow Diagram is a model showing A) The relationship between major sectors of the economy. B) How the market system works. C) That the different sectors of the economy are interdependent. D) The relative importance of the different sectors of the economy. Show Answer Correct Answer: C) That the different sectors of the economy are interdependent. 51. Kegiatan ekonomi yang manakah menunjukkan barang perantaraan? A) Getah yang dibeli oleh kilang kasut. B) Buku ekonomi yang dibeli oleh pelajar. C) Minyak kelapa sawit yang dieksport. D) Tepung yang dibeli untuk kegunaan sendiri. Show Answer Correct Answer: A) Getah yang dibeli oleh kilang kasut. 52. Calculate ' net value added at factor cost' from the following data:(Rs IN LAKHS) i.Sale 700ii. Purchase of machine for installation in the factory 100iii. Subsidies 50 iv. Change in stock. (-) 30 v. Purchase of raw material 400 vi.Rent 60 vii.Consumption of fixed capital 20 A) Rs. 250 Lakhs. B) Rs. 300 Lakhs. C) Rs. 370 Lakhs. D) Rs. 280 Lakhs. Show Answer Correct Answer: B) Rs. 300 Lakhs. 53. Mobin and Mona just bought their new house. In the national income accounting, this transaction is considered as A) Fixed cost. B) Consumption on durable goods. C) Inventory investment. D) Consumption on semi-durable goods. Show Answer Correct Answer: C) Inventory investment. 54. Depreciation expenses are included in: A) GNP at Market Price. B) NNP at Market Price. C) NNP at factor cost. D) None. Show Answer Correct Answer: A) GNP at Market Price. 55. Calculate GNP$_{MP:}$Items-Rs (in crores)1. Private final consumption expenditure-10002. Private fixed investment (gross)-5003. Change in inventories-4004. Govt. consumption expenditure-3005. Govt. fixed investment-2006. Consumption of pvt. fixed capital-1007. Consumption of Govt. fixed capital (gross)-508. Indirect taxes-2009. economic subsidies-15010. Net exports-10011. NFIA-(-)50 A) Rs. 2200cr. B) Rs. 2250 cr. C) Rs. 2400 cr. D) Rs. 2450 cr. Show Answer Correct Answer: D) Rs. 2450 cr. 56. Net export is adding import and export A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 57. The net value of GDP after deducting depreciation from GDP is A) Gross national product. B) Net national product. C) Disposable income. D) Net domestic product. Show Answer Correct Answer: D) Net domestic product. 58. What is the main conclusion about the aggregate estimate of income in an economy? A) It depends on the level of savings. B) It depends on the level of government spending. C) It remains the same regardless of the method used. D) It depends on the level of external trade. Show Answer Correct Answer: C) It remains the same regardless of the method used. 59. Which of the following is NOT a valid exchange medium for factors of production? A) Import. B) Profit. C) Rent. D) Wages. Show Answer Correct Answer: A) Import. 60. What is Gross National Product (GNP) at market price equal to? A) GDP at factor cost-Depreciation. B) GDP at market price-Depreciation. C) GDP at factor cost + Net Factor Income Abroad. D) GDP at market price + Net Factor Income Abroad. Show Answer Correct Answer: D) GDP at market price + Net Factor Income Abroad. ← 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 6Class 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