This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting – Quiz 19 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 19 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The industrial origin approach provides insights into the contribution of different ..... to the overall national income. A) Sectors. B) Companies. C) Individuals. D) Investments. Show Answer Correct Answer: A) Sectors. 2. Net national product at factor cost is also known as: A) Net Domestic product. B) Gross National product. C) National Income. D) Personal Income. Show Answer Correct Answer: C) National Income. 3. Collects taxes, spends on public goods, and gives subsidies or transfers. A) HOUSEHOLD SECTOR. B) FIRM. C) GOVERNMENT. D) REST OF THE WORLD. Show Answer Correct Answer: C) GOVERNMENT. 4. Pocket money received by a student from his parents is included in A) Factor income. B) Money income. C) Transfer income. D) Domestic income. Show Answer Correct Answer: C) Transfer income. 5. Which approach to National Income Accounting helps assess the relative importance of different industries in the economy? A) Income Approach. B) Expenditure Approach. C) Industrial Origin Approach. D) Factor Approach. Show Answer Correct Answer: C) Industrial Origin Approach. 6. Which method of measuring income looks at GDP from the perspectives of sum of incomes received from the production of the output? A) Expenditure Approach. B) Income Approach. C) Output Approach. D) Product Approach. Show Answer Correct Answer: B) Income Approach. 7. The income approach calculates national income by summing up all the incomes earned by individuals and businesses, including profits, rents, and ..... A) Wages and Salaries. B) Taxes. C) Debts. D) Investments. Show Answer Correct Answer: A) Wages and Salaries. 8. What does the term 'capital deepening' refer to? A) A decrease in the number of workers. B) A decrease in the amount of capital per worker. C) An increase in the amount of capital per worker. D) An increase in the number of workers. Show Answer Correct Answer: C) An increase in the amount of capital per worker. 9. Indirect taxes are added when calculating GDP at market price. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 10. National income should be measure by adding ..... to avoid the double counting problem. A) Total sales of final and intermediate products. B) Total sales of intermediate product. C) Total sales of final product. D) Total cost of final product. Show Answer Correct Answer: C) Total sales of final product. 11. Pollution is an example for ..... externality. A) Positive. B) Negative. C) All the above. D) None of the above. Show Answer Correct Answer: B) Negative. 12. The difference between the earnings from exports and the earnings from import of a specific economy A) GDP. B) GNP. C) National Income. D) Net Export. Show Answer Correct Answer: D) Net Export. 13. Which of the following is not included in national income? A) Transfer payment. B) Income from sale of shares. C) Income from sale ofsecond hand goods. D) Imputed rent of self occupied house. Show Answer Correct Answer: D) Imputed rent of self occupied house. 14. What is the Income Method used for in measuring National Income? A) Measuring incomes generated by production, including wages, salaries, and returns on capital. B) Measuring the GDP of a country. C) Measuring the total population of a country. D) Measuring the profits of a company. Show Answer Correct Answer: A) Measuring incomes generated by production, including wages, salaries, and returns on capital. 15. The purchase of machinery and equipment used in the production by firms is called A) Consumption expenditures. B) Investment expenditures. C) Government expenditures. D) Net export. Show Answer Correct Answer: B) Investment expenditures. 16. Primary sector comprises ..... A) Manufacturing, construction, utility supply such as electricity, gas and water. B) Agriculture, forestry, fishing, mining, farming. C) Banking, transportation, communication, wholesale, retailling. D) Services and banking. Show Answer Correct Answer: B) Agriculture, forestry, fishing, mining, farming. 17. In calculating national income, the construction of a hospital is classified as a(n) ..... A) Investment expenditure. B) Government expenditure. C) Private consumption expenditure. D) None of the above. Show Answer Correct Answer: B) Government expenditure. 18. In an open economy, private saving, Sp, is equal to A) I-CA + (G-T). B) I + CA-(G-T). C) I + CA + (G-T). D) I-CA-(G-T). E) I + CA + (G + T). Show Answer Correct Answer: C) I + CA + (G-T). 19. The formula for calculating GDP using the expenditure approach includes all of the following components except A) Consumption. B) Investment. C) Savings. D) Government Spending. Show Answer Correct Answer: C) Savings. 20. What are the limitations of GDP and GNI in depicting the overall health of an economy? A) They provide a complete picture of income distribution. B) They consider the environmental impact of production. C) They only convey information about production and ignore income distribution and poverty. D) They focus on individual well-being. Show Answer Correct Answer: C) They only convey information about production and ignore income distribution and poverty. 21. Calculate the intermediate consumption from the following data:Items-Rs (in crores)1. Value of output-2002. Net value added at factor cost-803. Sales tax-154. Subsidy-55. Depreciation-20 A) Rs. 90 cr. B) Rs. 75 cr. C) Rs.105 cr. D) Rs. 70 cr. Show Answer Correct Answer: A) Rs. 90 cr. 22. The sector providing factors of production for creating end goods or service A) Agriculture. B) Industry. C) Service. D) Informal. Show Answer Correct Answer: A) Agriculture. 23. When analyzing the expenditure approach to GDP calculation, which of the following represents government spending on infrastructure projects? A) G. B) C. C) I. D) X-M. Show Answer Correct Answer: A) G. 24. Identify the method used to measure the change of price in an economy? A) Normal price index. B) Consumer price index. C) Trading price index. D) Economy price index. Show Answer Correct Answer: B) Consumer price index. 25. Increase in Stock of Capital is known as: A) Capital Loss. B) Capital Profit. C) Capital Formation. D) None of the above. Show Answer Correct Answer: C) Capital Formation. ← 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