This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting – Quiz 18 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 18 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A higher GDP per capita may not mean that the quality of life has really improved because: A) It measures wealth not income. B) It measures Gross Domestic Product. C) It does not measure the quality of the items produced. D) It is only measured every five years. Show Answer Correct Answer: C) It does not measure the quality of the items produced. 2. Subject: A) GE 6. B) GE 6. C) All the above. D) None of the above. Show Answer Correct Answer: A) GE 6. 3. What must be added to domestic factor income to obtain national income? A) Net factor income from abroad. B) Net indirect tax. C) Depriciation. D) Subsidy. Show Answer Correct Answer: A) Net factor income from abroad. 4. The process of buying personal goods and service to answer needs and wants A) Consumption. B) Investment. C) Government Expenditure. D) Net Export. Show Answer Correct Answer: A) Consumption. 5. Which component is not included in the calculation of GDP using the expenditure approach? A) Consumption. B) Investment. C) Savings. D) Government Spending. Show Answer Correct Answer: C) Savings. 6. The Circular Flow Diagram is a model showing A) That the different sectors of the economy are interdependent. B) How the market system works. C) The relationship between major sectors of the economy. D) The relative importance of the different sectors of the economy. Show Answer Correct Answer: A) That the different sectors of the economy are interdependent. 7. Kegiatan ekonomi yang manakah menunjukkan barang perantaraan? A) Getah yang dibeli oleh kilang kasut. B) Minyak kelapa sawit yang dieksport. C) Buku ekonomi yang dibeli oleh pelajar. D) Tepung yang dibeli untuk kegunaan sendiri. Show Answer Correct Answer: A) Getah yang dibeli oleh kilang kasut. 8. Calculate ' net value added at factor cost' from the following data:(Rs IN LAKHS) i.Sale 700ii. Purchase of machine for installation in the factory 100iii. Subsidies 50 iv. Change in stock. (-) 30 v. Purchase of raw material 400 vi.Rent 60 vii.Consumption of fixed capital 20 A) Rs. 300 Lakhs. B) Rs. 250 Lakhs. C) Rs. 280 Lakhs. D) Rs. 370 Lakhs. Show Answer Correct Answer: A) Rs. 300 Lakhs. 9. Mobin and Mona just bought their new house. In the national income accounting, this transaction is considered as A) Consumption on durable goods. B) Inventory investment. C) Consumption on semi-durable goods. D) Fixed cost. Show Answer Correct Answer: B) Inventory investment. 10. Depreciation expenses are included in: A) GNP at Market Price. B) NNP at Market Price. C) NNP at factor cost. D) None. Show Answer Correct Answer: A) GNP at Market Price. 11. Calculate GNP$_{MP:}$Items-Rs (in crores)1. Private final consumption expenditure-10002. Private fixed investment (gross)-5003. Change in inventories-4004. Govt. consumption expenditure-3005. Govt. fixed investment-2006. Consumption of pvt. fixed capital-1007. Consumption of Govt. fixed capital (gross)-508. Indirect taxes-2009. economic subsidies-15010. Net exports-10011. NFIA-(-)50 A) Rs. 2250 cr. B) Rs. 2400 cr. C) Rs. 2450 cr. D) Rs. 2200cr. Show Answer Correct Answer: C) Rs. 2450 cr. 12. In the United States over the past seventy years, the fraction of GNP devoted to consumption has fluctuated in a range of about A) 42 to 49 percent. B) 32 to 39 percent. C) 22 to 29 percent. D) 82 to 89 percent. E) 62 to 70 percent. Show Answer Correct Answer: E) 62 to 70 percent. 13. Net export is adding import and export A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 14. The net value of GDP after deducting depreciation from GDP is A) Net national product. B) Net domestic product. C) Gross national product. D) Disposable income. Show Answer Correct Answer: B) Net domestic product. 15. What is the main conclusion about the aggregate estimate of income in an economy? A) It depends on the level of savings. B) It depends on the level of government spending. C) It depends on the level of external trade. D) It remains the same regardless of the method used. Show Answer Correct Answer: D) It remains the same regardless of the method used. 16. What is the significance of the circular flow of income model? A) Measures inflation rate. B) Predicts stock market trends. C) Calculates individual income. D) Represents flows of money, goods, and services between economic agents. Show Answer Correct Answer: D) Represents flows of money, goods, and services between economic agents. 17. Which of the following is NOT a valid exchange medium for factors of production? A) Import. B) Rent. C) Wages. D) Profit. Show Answer Correct Answer: A) Import. 18. What is Gross National Product (GNP) at market price equal to? A) GDP at market price + Net Factor Income Abroad. B) GDP at market price-Depreciation. C) GDP at factor cost + Net Factor Income Abroad. D) GDP at factor cost-Depreciation. Show Answer Correct Answer: A) GDP at market price + Net Factor Income Abroad. 19. Net National Income at Factor Cost is called? A) National Income. B) Gross Investment. C) Domestic Income. D) None of these. Show Answer Correct Answer: A) National Income. 20. Net National Product at market price is greater than net National Product at factor cost when: A) Indirect tax is greater than subsidies. B) Indirect tax is less than subsidies. C) Indirect tax is equal to subsidies. D) None of these. Show Answer Correct Answer: A) Indirect tax is greater than subsidies. 21. What are Economic Indicators used for in business? A) To determine the aesthetic value of a business location. B) To predict the weather patterns for a business location. C) To assess the economic viability of a business location. D) To calculate the exact profit a business will make. Show Answer Correct Answer: C) To assess the economic viability of a business location. 22. What is the main factor that enables the sale of goods and services in the market? A) Demand for the products. B) Government regulations. C) Availability of natural resources. D) Level of savings in the economy. Show Answer Correct Answer: A) Demand for the products. 23. Which of the following is not included in GNP calculations? A) Investment spending. B) Government transfer payments. C) Net exports. D) Depreciation of capital. Show Answer Correct Answer: B) Government transfer payments. 24. Over the 1980s A) There is no question that a large increase in U.S. foreign assets did occur. B) There is a question whether a large decrease in U.S. foreign assets did occur. C) There is no question that a large decrease in U.S. foreign assets did occur. D) There is no question that there was almost no change in U.S. foreign assets. E) There is no question that rising exports exceeded U.S. foreign debt. Show Answer Correct Answer: C) There is no question that a large decrease in U.S. foreign assets did occur. 25. The equation for gross domestic product using the expenditure approach is A) GDP = C + I + G + X + M + SC. B) GDP = C + I + G + M-X + SC. C) GDP = C + I + G + (X + M) + SC. D) GDP = C + I + G + (X-M) + SC. Show Answer Correct Answer: D) GDP = C + I + G + (X-M) + SC. ← 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