This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 17 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Investment is usually A) More variable than consumption. B) Less variable than consumption. C) As variable as consumption. D) A larger component of the GNP than consumption. E) It is hard to tell from the data whether investment is more or less variable than consumption. Show Answer Correct Answer: A) More variable than consumption. 2. 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. 3. Which one of the following is NOT included in National Income? A) Old age pension. B) Salary. C) Wages. D) Bonus. Show Answer Correct Answer: A) Old age pension. 4. 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. 955 cr. B) Rs. 965 cr. C) Rs. 960 cr. D) Rs. 950 cr. Show Answer Correct Answer: D) Rs. 950 cr. 5. 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. 6. 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. 7. Refer as Gross National Product minus depreciation. A) Net National Product. B) Gross Domestic Product. C) Per Capita Income. D) Personal Income. Show Answer Correct Answer: A) Net National Product. 8. If a country's GDP is $ 800 billion and its citizens' income earned abroad is $ 50 billion, what is the country's GNP? A) $ 850 billion. B) $ 750 billion. C) $ 800 billion. D) $ 850 million. Show Answer Correct Answer: A) $ 850 billion. 9. Who is considered as the father of economics? A) Adam Smith. B) Marshall. C) Pigou. D) Samuel. Show Answer Correct Answer: A) Adam Smith. 10. 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 national income. B) Decrease in national income. C) No change in national income. D) Increase in exports. Show Answer Correct Answer: A) Increase in national income. 11. What must be added to the domestic factor income to avail national income? A) NIT. B) Net factor Income from abroad. C) Depreciation. D) Transfer Payment. Show Answer Correct Answer: B) Net factor Income from abroad. 12. 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. 13. Gross Investment= 7000Net Investment= 5000calculate Depreciation. A) 1000. B) 12000. C) 2000. D) -2000. Show Answer Correct Answer: C) 2000. 14. The national income is A) NNP at factor cost. B) NNP at market price. C) GNP at market price. D) GNP at factor cost. Show Answer Correct Answer: A) NNP at factor cost. 15. 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. 16. 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) Personal Income. B) Gross National Income. C) Gross Domestic Income. D) National Income. Show Answer Correct Answer: D) National Income. 17. 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) $ 344. B) $ 321. C) $ 264. D) $ 252. Show Answer Correct Answer: B) $ 321. 18. 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. 19. 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. 20. The total value of Goods and Services produced by all nationals of a country (whether within or outside the country) A) GDP. B) GNP. C) National Income. D) Net Export. Show Answer Correct Answer: B) GNP. 21. 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. 22. Which of the following is a stock A) Wealth. B) Savings. C) Exports. D) Profits. Show Answer Correct Answer: A) Wealth. 23. 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. 24. Disposable income (Yd) is the personal income ..... A) After the deduction of personal income tax. B) After the deduction indirect tax. C) Before the deduction of personal income tax. D) Before the deduction indirect tax. Show Answer Correct Answer: A) After the deduction of personal income tax. 25. 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. ← 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