This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 2 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Every international transaction automatically enters the balance of payments A) Once either as a credit or as a debit. B) Twice, once as a credit and once as a debit. C) Once as a credit. D) Twice, both times as debit. E) None of the above. Show Answer Correct Answer: B) Twice, once as a credit and once as a debit. 2. NNP= GNP ..... A) Deduction. B) Depreciation. C) Investment. D) Nit. Show Answer Correct Answer: B) Depreciation. 3. Profit is the sum of A) Operating surplus and mixed income. B) Rent, interest, and royalty. C) Profit tax, retainec earnings and dividend. D) All of these. Show Answer Correct Answer: C) Profit tax, retainec earnings and dividend. 4. The concept of added value is ..... A) The value of production not included in the calculation of national income. B) Added value created when intermediate goods are processed into final goods. C) The increased value created for a good after undergoing the production process. D) The value of production calculated based on market prices. Show Answer Correct Answer: C) The increased value created for a good after undergoing the production process. 5. Double counting in the national income accounts will not occur if GDP is computed by summing all: A) Sales of final output. B) Sales of final output and intermediate goods. C) Sales. D) Production costs. Show Answer Correct Answer: A) Sales of final output. 6. The law of scarcity applies to: A) A capitalist economy. B) A poor economy. C) Statistics. D) All economies. Show Answer Correct Answer: B) A poor economy. 7. What is the formula for calculating Market Value? A) P-Q. B) P x Q. C) P / Q. D) P + Q. Show Answer Correct Answer: B) P x Q. 8. When calculating GDP using the expenditure approach, which of the following components would increase GDP? A) Increase in government spending. B) Decrease in exports. C) Increase in imports. D) Decrease in investment. Show Answer Correct Answer: A) Increase in government spending. 9. The following is NOT included in Malaysia's GDP. A) EON's corporate profit. B) Salary of a Malaysian Cabinet Minister. C) SOGO's gross profit. D) Wages earned by Malaysians in Brunei. Show Answer Correct Answer: D) Wages earned by Malaysians in Brunei. 10. The value of the output of all goods and services produced within a country in a year. A) Total output. B) Gross Domestic Product. C) National income. D) Net domestic product. Show Answer Correct Answer: B) Gross Domestic Product. 11. Each of the following items is a component of the expenditure approach, EXCEPT ..... A) Personal consumption expenditure. B) Government expenditure. C) Net interest. D) Imports. Show Answer Correct Answer: C) Net interest. 12. From the following who is not a normal residents if India? A) An American residing in India for visiting Taj mahal. B) An Indian living in USA for the last three years. C) None of these. D) Both a and b. Show Answer Correct Answer: D) Both a and b. 13. The portion of corporate profit included in personal income is ..... A) Undistributed corporate income. B) Taxes on corporate profits. C) Capital utilization allowance. D) Dividends. Show Answer Correct Answer: D) Dividends. 14. Suppose the total market value of all final goods and services produced in a particular country in 2004 is $ 500 billion and the total market value of final goods and services sold is $ 450 billion. We can conclude that A) GDP in 2004 is $ 450 billion. B) NDP in 2004 is $ 450 billion. C) GDP in 2004 is $ 500 billion. D) Inventories in 2004 fell by $ 50 billion. Show Answer Correct Answer: C) GDP in 2004 is $ 500 billion. 15. Whose definition of economics is classificatory? A) Adam Smith. B) Marshall. C) Pigou. D) Robbins. Show Answer Correct Answer: B) Marshall. 16. Export is included in the calculation of personal income A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 17. The equation for gross Domestic Product by using expenditure approach is A) GDP=C+I+G+X+M. B) GDP=C+I+G+X-M. C) GDP=C+I+G+X-M. D) GDP=C+I+G+X-M. Show Answer Correct Answer: B) GDP=C+I+G+X-M. 18. Transfer payment refers to payment which are made ..... A) As compensation to workers. B) Without any exchange of goods and services. C) To workers on transfer from one job to another. D) None of the above. Show Answer Correct Answer: B) Without any exchange of goods and services. 19. Intermediate goods refers to A) Goods that satisfies human needs directly. B) Goods that undergoes further processing. C) Goods that are used for a longer time. D) Services rendered by a housewife. Show Answer Correct Answer: B) Goods that undergoes further processing. 20. Calculate Profit when:Retained Earning= 700 crCorporate tax= 600 crDividend= 400 cr A) 1300cr. B) 1700. C) 1700 cr. D) 1100 cr. Show Answer Correct Answer: C) 1700 cr. 21. Given the following transactions, calculate the National Product. Firm X sells goods worth Rs. 600 to firm Y and goods worth Rs 400 to firm Z. Firm Y sells finished goods worth Rs. 250 for final consumption and goods of Rs. 500 to firm Z. Firm Z sells its product for Rs. 2800 to households. A) Rs. 2900. B) Rs. 3050. C) Rs. 3875. D) Rs. 4350. Show Answer Correct Answer: B) Rs. 3050. 22. Which services are provided by families to a firm? A) Land. B) Labour. C) Capital and enterprise. D) All of the above. Show Answer Correct Answer: D) All of the above. 23. Berikut adalah komponen perbelanjaan agregat dalam pengiraan pendapatan negara Malaysia mengikut kaedah perbelanjaan kecuali A) Cukai import. B) Pelaburan swasta. C) Penggunaan awam. D) Perubahan inventori. Show Answer Correct Answer: A) Cukai import. 24. The net export negative shows that ..... A) Nation imports of goods and services exceed its export.*. B) The economy's stock of capital goods is decreasing. C) Nation imports of goods and services exceed its export. D) The value of depreciation is more than the gross private investment. Show Answer Correct Answer: C) Nation imports of goods and services exceed its export. 25. Which are NOT the four sector model? A) Government sector. B) Household sector. C) Overseas sector. D) Financial sector. Show Answer Correct Answer: C) Overseas 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 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 10Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books