This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 15 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which economic indicator is used to assess changes in output without price fluctuations? A) Nominal GNP. B) Money GNP. C) Real GNP. D) Gross Output. Show Answer Correct Answer: C) Real GNP. 2. Which of the following is not a limitation of GNP? A) Excludes non-market activities. B) Ignores income from abroad. C) Does not consider income distribution. D) Measures environmental sustainability. Show Answer Correct Answer: D) Measures environmental sustainability. 3. 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. 4. 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. 425 cr. B) Rs. 445 cr. C) Rs. 385 cr. D) Rs. 365 cr. Show Answer Correct Answer: B) Rs. 445 cr. 5. What does the "X-M" component represent in the expenditure approach formula for GDP? A) Net Exports. B) Total Exports. C) Total Imports. D) Exports minus Taxes. Show Answer Correct Answer: A) Net Exports. 6. Net Value Added at Factor cost = A) Sum of Factor Payments. B) Sum of Current Payments. C) Sum of Transfer Payments. D) Net Current Transfer from rest of the world. Show Answer Correct Answer: A) Sum of Factor Payments. 7. The standard of living of the population of a country is indicated by changes in the ..... A) Net per capita income data. B) National income at current price data. C) Per capita income data. D) Net national income data. Show Answer Correct Answer: A) Net per capita income data. 8. In 2006, the United States had A) A surplus in the current account. B) A balance in the current account. C) A deficit in the current account. D) From 2006 data, it is too difficult to determine whether a surplus or a deficit existed in the current account. E) A positive balance of net financial flows. Show Answer Correct Answer: C) A deficit in the current account. 9. According to the text, what determines the economic wealth of a nation? A) The possession of natural resources. B) The amount of income generated. C) The production process. D) The level of consumption. Show Answer Correct Answer: C) The production process. 10. 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. 11. 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. 12. What does Real GNP adjust for when compared to Money GNP? A) Inflation. B) Interest rates. C) Exchange rates. D) Government spending. Show Answer Correct Answer: A) Inflation. 13. Provides factors of production and pays taxes. A) HOUSEHOLD SECTOR. B) FIRM. C) GOVERNMENT. D) REST OF THE WORLD. Show Answer Correct Answer: A) HOUSEHOLD SECTOR. 14. What is the problem of Less Sophisticated Machinery in calculating National Income? A) 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) Limited availability of advanced computers or programs to compute national income data. D) Abundance 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. 15. Durable goods purchased by government for military purposes are? A) Final goods. B) Intermediate goods. C) Material goods. D) Non material goods. Show Answer Correct Answer: B) Intermediate goods. 16. Net National Product= A) GNP (-) Depreciation. B) Net domestic product (-) Depreciation. C) Per capita Income (-) Depreciation. D) Gross domestic product (-) Depreciation. Show Answer Correct Answer: A) GNP (-) Depreciation. 17. 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. 18. 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. 19. Which of the following is included in the calculation of national income? A) Increased the value of a house due to inflation. B) Prize money of RM15, 000 was awarded as sales incentive. C) Interest paid to the holder of a government guarantee letter. D) The value of accommodation paid by an employer as part of an employee's wages. Show Answer Correct Answer: D) The value of accommodation paid by an employer as part of an employee's wages. 20. 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. 21. 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. 22. 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). 23. 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. 24. 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) Factor Income Approach. B) Industry Origin Approach. C) Final Expenditure Approach. D) Value Added Approach. Show Answer Correct Answer: A) Factor Income Approach. 25. 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. ← 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