This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting – Quiz 20 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 20 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Gross Domestic Product is equal to sum of consumption expenditure, investment, government purchases and profits. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 2. When calculating national output, economists distinguish between values measured at current market prices and those adjusted to constant base-year prices to remove inflation effects. What are these two approaches commonly called in national income concepts? A) Nominal GDP and Real GDP. B) GROSS AND NET PRODUCT. C) FACTOR AND MARKET COST. D) PERSONAL AND DISPOSABLE INCOME. Show Answer Correct Answer: A) Nominal GDP and Real GDP. 3. In the United States, (gross) investment has fluctuated between ..... of GNP in recent years. A) 2 and 12 percent. B) 11 and 22 percent. C) 22 and 32 percent. D) 32 and 42 percent. E) 42 and 52 percent. Show Answer Correct Answer: B) 11 and 22 percent. 4. Double counting is one of the problems in calculating national income accounting. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 5. Which of the following is a widely used measure of the standard of living? A) Per-capita real GDP. B) Percapita Nominal GDP. C) NNP fc. D) GDP mp. Show Answer Correct Answer: A) Per-capita real GDP. 6. Devise a strategy to address the limitation of GNP in excluding non-market activities. A) Include household work in GNP calculations. B) Ignore non-market activities. C) Adjust GDP to account for non-market activities. D) Create a separate index for non-market activities. Show Answer Correct Answer: A) Include household work in GNP calculations. 7. Net National Product (NNP) is calculated by: A) Subtracting depreciation from Gross National Product (GNP). B) Adding depreciation to Gross Domestic Product (GDP). C) Subtracting indirect taxes from Gross Domestic Product (GDP). D) Adding indirect taxes to Gross National Product (GNP). Show Answer Correct Answer: A) Subtracting depreciation from Gross National Product (GNP). 8. What is the total market value of all final goods and services produced by the residents of a country during a given period of time? A) GDP. B) NNP. C) GNP. D) GNC. Show Answer Correct Answer: C) GNP. 9. Evaluate the effect of a decrease in consumer confidence on GDP growth. A) Decrease in GDP growth. B) Increase in GDP growth. C) No impact on GDP growth. D) Decrease in exports. Show Answer Correct Answer: A) Decrease in GDP growth. 10. Who calculated National income and it's Aggregates in India? A) CSO. B) RBI. C) NSSO. D) Govt of India. Show Answer Correct Answer: C) NSSO. 11. Flow of factor services from households to firms and the flow of goods and services from firms to households is called A) Money flow. B) Income flow. C) Product flow. D) Real flow. Show Answer Correct Answer: D) Real flow. 12. DEPRECIATION refers to A) Loss of value of consumer goods due to consumption. B) Loss value of capital goods due to unforeseen incidents. C) Loss of value of capital goods due to normal wear and tear and expected obsolescence. D) Loss of assets made intentionally. Show Answer Correct Answer: C) Loss of value of capital goods due to normal wear and tear and expected obsolescence. 13. National income at current prices will be greater than national income at fixed prices when ..... A) Unemployment occurs in an economy. B) Inflation occurs in an economy. C) National exports exceed imports. D) National imports exceed exports. Show Answer Correct Answer: B) Inflation occurs in an economy. 14. Sugar purchased by a Sweet shop is an ..... good, it is a ..... good when it is purchased by a consumer. A) Capital, final. B) Final, intermediate. C) Intermediate, final. D) Final, producer. Show Answer Correct Answer: C) Intermediate, final. 15. Calculate the personal disposable income from the following data:Items-Rs (in crores)1. Private income-20002. Net retained earning of private enterprises-6003. Direct tax paid by households-2004. Corporation tax-3505. National debt interest-250 A) Rs.1250 cr. B) Rs.1050 cr. C) Rs. 850 cr. D) Rs. 600 cr. Show Answer Correct Answer: C) Rs. 850 cr. 16. What is the definition of National Income? A) The total payment received by the factors of production in a country during a year. B) The total money value of all final goods and services produced in a country. C) The total value of imports and exports in a year. D) The total income earned by the government in a year. Show Answer Correct Answer: A) The total payment received by the factors of production in a country during a year. 17. Which method of measuring National Income includes Consumption, Government Spending, and Investment? A) Income Approach. B) Product Approach. C) Expenditure Approach. D) Market Price Approach. Show Answer Correct Answer: C) Expenditure Approach. 18. Which of the following is not an intermediate good for a former? A) Seeds. B) Fertilizer. C) Tractor. D) All of these. Show Answer Correct Answer: C) Tractor. 19. Building up its capital stock or by acquiring foreign wealth. A) Can save only by building up its capital stock or by acquiring foreign wealth. B) Can save only by building up its capital stock. C) Can save only by acquiring foreign wealth. D) Cannot save either by building up its capital stock or by acquiring foreign wealth. E) Can save by avoiding excessive imports. Show Answer Correct Answer: B) Can save only by building up its capital stock. 20. Transfer payment are included in ..... A) National Income. B) Gross Domestic Product. C) Gross National Product. D) Personal Income. Show Answer Correct Answer: D) Personal Income. 21. What does the GDP Deflator measure? A) Cost of a given bundle of goods in one year relative to a predetermined base year. B) Total population growth rate. C) Total exports and imports. D) Total government debt. Show Answer Correct Answer: A) Cost of a given bundle of goods in one year relative to a predetermined base year. 22. Below are the value involved in calculating GDP at market price using expenditure approach EXCEPT: A) Private investment. B) Household consumption. C) Salaries. D) Public expenditure. Show Answer Correct Answer: C) Salaries. 23. The percentage change in quantity of goods and services produced from one year to another is called ..... A) Per Capita Income. B) Growth rate. C) Gross Domestic Product. D) Real income. Show Answer Correct Answer: B) Growth rate. 24. What is the purpose of calculating net investment? A) To measure the wear and tear of capital goods. B) To determine the value of intermediate goods. C) To estimate the value of final goods. D) To calculate the value of consumer durables. Show Answer Correct Answer: A) To measure the wear and tear of capital goods. 25. Gross Domestic Product is equal to the sum of consumption expenditure, investment, government purchases and ..... A) Profits. B) Savings. C) Net taxes. D) Net exports. Show Answer Correct Answer: D) Net exports. ← 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