This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 16 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What does the net exports component represent in the expenditure approach of National Income Accounting? A) Exports minus Imports. B) Imports minus Exports. C) Total Exports. D) Total Imports. Show Answer Correct Answer: A) Exports minus Imports. 2. Disposable income is obtained by: A) National income-Depreciation. B) Personal income-Personal taxes. C) GDP-Indirect taxes. D) NNP-Subsidies. Show Answer Correct Answer: B) Personal income-Personal taxes. 3. 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. 200 Lakhs. B) Rs. 170 Lakhs. C) Rs. 180 Lakhs. D) Rs. 175 Lakhs. Show Answer Correct Answer: C) Rs. 180 Lakhs. 4. ..... 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. 5. The market value of the net output of final goods and services produced by a nation during a year. A) Nominal National Income. B) Real National Income. C) Net National Product. D) Per Capita Income. Show Answer Correct Answer: C) Net National Product. 6. What is the main difference between GDP and GNP? A) GNP includes income from abroad, GDP does not. B) GDP measures only goods, GNP measures goods and services. C) GNP measures only services, GDP measures goods and services. D) GDP includes income from abroad, GNP does not. Show Answer Correct Answer: A) GNP includes income from abroad, GDP does not. 7. 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. 8. The value of Net national product at consume A) NNP at market price. B) GNP at market price. C) Gross national product. D) GNP at factor cost. Show Answer Correct Answer: A) NNP at market price. 9. Goods purchased for satisfaction of wants A) Capital Goods. B) Final Goods. C) Consumption goods. D) Intermediate Goods. Show Answer Correct Answer: C) Consumption goods. 10. What does Real GDP overcome the shortcomings of Nominal GDP by? A) Considering only the service sector. B) Including only government spending. C) Eliminating price changes from the indicator. D) Focusing on international trade. Show Answer Correct Answer: C) Eliminating price changes from the indicator. 11. 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. 12. Which of the following is NOT a Phase? A) Expansion. B) Contraction. C) Neutral. D) Peak. E) Trough. Show Answer Correct Answer: C) Neutral. 13. NDP at factor cost = A) Net domestic product at market price-indirect tax. B) Net Domestic Product at market price+ Subsidies. C) Net Domestic Product at market price at market price-Net indirect tax. D) Net Domestic product at market price + Depreciation. Show Answer Correct Answer: C) Net Domestic Product at market price at market price-Net indirect tax. 14. In a closed economy, ..... is not included. A) Household. B) Firms. C) Government. D) Foreign sector. Show Answer Correct Answer: D) Foreign sector. 15. 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) 127 crore. B) 130 crore. C) 134 crore. D) 125 crore. Show Answer Correct Answer: A) 127 crore. 16. 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. 17. Income that is actually received by individuals and households in an economy in a year is ..... A) Value added. B) Personal income. C) Transfer payments. D) Nominal national income. Show Answer Correct Answer: B) Personal income. 18. 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. 19. The root of economic problem A) Ends. B) Means. C) Scarcity. D) Greed. Show Answer Correct Answer: C) Scarcity. 20. Aggregate demand is the sum of ..... A) C+I+G+(X-M). B) C+I+X. C) C+I+G+(M-X). D) C+I+G. Show Answer Correct Answer: A) C+I+G+(X-M). 21. What is the product or value added method used to calculate? A) Aggregate expenditure. B) Aggregate income. C) Aggregate production. D) Aggregate savings. Show Answer Correct Answer: C) Aggregate production. 22. 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. 23. 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. 24. 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. 25. According to the fundamental identity of national income accounting, A) Y = C + I + G + NX. B) S = (Y + NFP-T + TR + INT)-C. C) Total production = total income = total expenditure. D) GDP = GNP-NFP. Show Answer Correct Answer: A) Y = C + I + G + NX. ← 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