This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 13 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Consider the following statements and identify the right ones.i. The data for NI and PCI are collected at current prices.ii. They are deflated using the deflator index to get value at constant prices. A) I only. B) Ii only. C) Both. D) None. Show Answer Correct Answer: C) Both. 2. For purposes of calculating GDP, which of the following payments is not included in the government spending component? A) Social security payments. B) Wages paid by a local government to its road crew. C) Wages paid by a state government to the workers in its welfare department. D) The federal government's purchase of a submarine from a shipbuilder. Show Answer Correct Answer: A) Social security payments. 3. According to Robbins, Economics is a: A) Positive Science. B) Normative Science. C) Natural Science. D) Social Science. Show Answer Correct Answer: A) Positive Science. 4. Macroeconomic analysis emphasizes four aspects of economic life which are A) Unemployment, saving, trade imbalances, money and the price level. B) Market structures, social inequality, inflation, balance of payments. C) Firms' competition, growth, trade imbalances, inflation. D) Happiness and utilities, trade imbalances, equality, GDP growth. Show Answer Correct Answer: A) Unemployment, saving, trade imbalances, money and the price level. 5. Which is not a component of operating surplus? A) Rent. B) Interest. C) Wages. D) Profit. Show Answer Correct Answer: C) Wages. 6. Which of the following differentiate between domestic income and national income? A) NIT. B) NFIA. C) NVA. D) NDP. Show Answer Correct Answer: B) NFIA. 7. Real gross domestic product is a measure of the A) Average price level in the economy. B) Value of final output produced within a country in one year, using current prices. C) Value of final output produced within a country in one year, adjusted for changing prices. D) Total value of available resources in a nation. Show Answer Correct Answer: C) Value of final output produced within a country in one year, adjusted for changing prices. 8. In the income approach, which of the following is NOT included in calculating national income? A) Wages and salaries. B) Rent. C) Transfer payments. D) Profits. Show Answer Correct Answer: C) Transfer payments. 9. Value of output = A) Sales. B) Sales + change in stock. C) Both. D) None of these. Show Answer Correct Answer: B) Sales + change in stock. 10. National Income of a country can be calculated by A) 2 methods. B) 3 methods. C) 4 methods. D) 5 methods. Show Answer Correct Answer: B) 3 methods. 11. Which of the following is a limitation of GNP? A) It includes non-market activities. B) It doesn't account for income from abroad. C) It considers environmental factors. D) It measures income inequality. Show Answer Correct Answer: A) It includes non-market activities. 12. Which of the following is added to GDP at market prices to obtain GNP at market prices A) Depreciation. B) Indirect taxes. C) Net factor income from abroad. D) Subsidies. Show Answer Correct Answer: C) Net factor income from abroad. 13. Which of the following is a component of GDP but not of GNP? A) Net exports. B) Government spending. C) Foreign investment income. D) Household consumption. Show Answer Correct Answer: A) Net exports. 14. Disposable income is national income A) Less taxes collected from households and firms by the government. B) Plus net taxes collected from households and firms by the government. C) Less net taxes collected from firms by the government. D) Less net taxes collected from households by the government. E) Less net taxes collected from households and firms by the government. Show Answer Correct Answer: E) Less net taxes collected from households and firms by the government. 15. Apakah sektor yang memberikan sumbangan tertinggi kepada KDNK pada tahun 2015 berdasarkan data yang diberikan? A) Harta tanah dan perkhidmatan perniagaan. B) Utility. C) Perdagangan borong dan runcit. D) Pertanian. Show Answer Correct Answer: A) Harta tanah dan perkhidmatan perniagaan. 16. Exam of Social security contributions in brunei is A) TAP. B) BIBD. C) TAIB. D) TBK. Show Answer Correct Answer: A) TAP. 17. 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. 18. 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. 19. 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. 20. 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. 345 cr. C) Rs. 400 cr. D) Rs. 395 cr. Show Answer Correct Answer: D) Rs. 395 cr. 21. What is the main problem associated with the Product (Output) Method? A) Double Counting. B) Triple Counting. C) No Counting. D) Half Counting. Show Answer Correct Answer: A) Double Counting. 22. 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. 23. The sector providing labor to agriculture and industry sector A) Agriculture. B) Industry. C) Service. D) Informal. Show Answer Correct Answer: C) Service. 24. 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. 25. 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. ← PreviousNext →Related 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 7Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 8Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 9Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books