This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 14 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Net National Product (NNP) at factor cost is also called: A) Gross Domestic Product. B) Net Domestic Product. C) National Income. D) Personal Income. Show Answer Correct Answer: C) National Income. 2. 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. 3. 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. 4. Assess the importance of considering income distribution when using GNP as an economic indicator. A) Not important. B) Somewhat important. C) Very important. D) Irrelevant. Show Answer Correct Answer: C) Very important. 5. Terjemahkan soalan ini ke dalam Bahasa Melayu A) KDNK-Jumlah penduduk. B) KDNK / Jumlah penduduk. C) KDNK * Jumlah penduduk. D) Jumlah penduduk / KDNK. Show Answer Correct Answer: B) KDNK / Jumlah penduduk. 6. Net indirect itax s included in which of the following? A) Compensation of employees. B) Government Final expenditure. C) Private final consumption expenditure. D) Operating surplus. Show Answer Correct Answer: B) Government Final expenditure. 7. What is Per Capita Income? A) Total wealth of the country. B) Average income of the richest citizens. C) National Income divided by the population. D) Total income of the country. Show Answer Correct Answer: C) National Income divided by the population. 8. 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. 9. Evaluate the effectiveness of government stimulus packages in boosting economic growth during a recession. A) Positive impact on economic growth. B) Negative impact on economic growth. C) No impact on economic growth. D) Increase in imports. Show Answer Correct Answer: A) Positive impact on economic growth. 10. 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. 11. 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 billion. C) $ 600 billion. D) $ 570 million. Show Answer Correct Answer: B) $ 570 billion. 12. 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. 13. The difference between value of output and value added is: A) Depreciation. B) Intermediate consumption. C) Net indirect taxes. D) NFIA. Show Answer Correct Answer: B) Intermediate consumption. 14. 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. 15. Are the following included in the compensation of employees?a) old-age pensionb) retirement pension A) Included; included. B) Included; excluded. C) Excluded; included. D) Excluded; excluded. Show Answer Correct Answer: C) Excluded; included. 16. An open economy A) Can save only by building up its capital stock. B) Can save only by acquiring foreign wealth. C) Cannot save either by building up its capital stock or by acquiring foreign wealth. D) Can save either by building up its capital stock or by acquiring foreign wealth. E) None of the above. Show Answer Correct Answer: D) Can save either by building up its capital stock or by acquiring foreign wealth. 17. The largest component of GNP is A) The current account. B) Investment. C) Government purchases. D) Consumption. E) Trade. Show Answer Correct Answer: D) Consumption. 18. What is the value of Gross National Income for the Philippines in 2020? A) Php 85, 000. B) Php 1.4 trillion. C) Php 19.3 trillion. D) Php 17.9 trillion. Show Answer Correct Answer: C) Php 19.3 trillion. 19. 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. 20. Accounting of National Income at constant prices is known as ..... A) Money income. B) Real income. C) Current income. D) Current income. Show Answer Correct Answer: B) Real income. 21. Which measure is used to account for changes in output without the influence of price fluctuations? A) Nominal GNP. B) Real GNP. C) Money GNP. D) Gross Domestic Product. Show Answer Correct Answer: B) Real GNP. 22. 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. 23. Each of the following items is a component of the income approach, EXCEPT ..... A) Salary/ wages. B) Rent. C) Net interest. D) Imports. Show Answer Correct Answer: D) Imports. 24. 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. 25. 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) NDP fc. B) NDP mp. C) GDP fc. D) GDP mp. Show Answer Correct Answer: A) NDP fc. ← 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