This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting – Quiz 21 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 21 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following sector is not included in circular flow within an economy? A) Production sector. B) Individual sector. C) Household sector. D) Government sector. Show Answer Correct Answer: B) Individual sector. 2. A country's national income data can be compared more accurately if: A) It uses market exchange rates only. B) It considers purchasing power parity (PPP). C) It excludes services sector. D) It ignores inflation differences. Show Answer Correct Answer: B) It considers purchasing power parity (PPP). 3. If the gross domestic product at market price is greater than the gross domestic product at factor cost, this means that ..... A) Indirect taxes are greater than subsidies. B) Indirect taxes are smaller than subsidies. C) Indirect taxes are positive. D) Factor income paid abroad is positive. Show Answer Correct Answer: A) Indirect taxes are greater than subsidies. 4. Indirect tax-Subsidies = ..... A) Net indirect tax. B) NFIA. C) NSD. D) NONE OF THE ABOVE. Show Answer Correct Answer: A) Net indirect tax. 5. The factor income approach is another name for which approach to National Income Accounting? A) Income Approach. B) Expenditure Approach. C) Industrial Origin Approach. D) Factor Approach. Show Answer Correct Answer: A) Income Approach. 6. GNP measured in current prices. A) Real Income. B) Nominal GNP. C) Real GNP. D) Real GDP. Show Answer Correct Answer: B) Nominal GNP. 7. How would a decrease in consumer spending and an increase in government spending affect GDP calculated using the expenditure approach? A) Increase GDP. B) Decrease GDP. C) No change in GDP. D) Increase in exports. Show Answer Correct Answer: A) Increase GDP. 8. Which of the following statements was announced by Ireland's Central Statistics Office on July 12, 2016? A) Ireland's real GDP had risen by 26.3 percent between 2014 and 2015. B) Ireland's real GDP had risen by 7.8 percent between 2014 and 2015. C) Ireland's real GDP had risen by 5.8 percent between 2014 and 2015. D) Ireland's real GDP had risen by 2.3 percent between 2014 and 2015. Show Answer Correct Answer: A) Ireland's real GDP had risen by 26.3 percent between 2014 and 2015. 9. If we compare GDP and GNP, then: A) GNP = GDP-net income from abroad. B) GNP = NNP-net income from abroad. C) GNP = GDP + net income from abroad. D) GNP = NNP + net income from abroad. Show Answer Correct Answer: C) GNP = GDP + net income from abroad. 10. When the gross national product is calculated using the expenditure method, the value calculated is ..... A) Gross national product at factor cost. B) Gross national product at market price. C) Gross domestic product at factor cost. D) Gross domestic product at market price. Show Answer Correct Answer: D) Gross domestic product at market price. 11. Which of the following is an example of macroeconomics? A) Price determination. B) Consumer's equilibrium. C) Producer's equilibrium. D) Inflation. Show Answer Correct Answer: D) Inflation. 12. Which factor is not considered in the calculation of Real GNP? A) Inflation. B) Population growth. C) Foreign investment. D) Government spending. Show Answer Correct Answer: C) Foreign investment. 13. A clerk earns a monthly salary of RM1200. He then changes job and works for a different firm, earning a monthly salary of RM2500. From his new salary, he pays RM500 per month to his housekeeper. Calculate the change in national income? A) RM1300. B) RM1800. C) RM2500. D) RM4200. Show Answer Correct Answer: B) RM1800. 14. Two related and essential tools to get a complete picture of the macroeconomic linkages among economies that engage in international trade include A) National income accounting and balance of payment accounting. B) Public accounting and government accounting. C) Foreign currency accounting and balance of payment accounting. D) Corporate accounting and foreign exchange accounting. Show Answer Correct Answer: A) National income accounting and balance of payment accounting. 15. Real GDP is considered as an index of A) Price level in the economy. B) Welfare of the people. C) Profit maximization. D) None of these. Show Answer Correct Answer: B) Welfare of the people. 16. If a country's GDP is $ 700 billion and net income from abroad is-$ 10 billion, what is the country's GNP? A) $ 710 billion. B) $ 690 billion. C) $ 700 billion. D) $ 710 million. Show Answer Correct Answer: B) $ 690 billion. 17. Activities that are illegal are EXCLUDED from the calculation of national income in certain countries such as gambling. A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 18. Which approach to National Income Accounting focuses on calculating national income by summing up all the incomes earned by individuals and businesses within the economy? A) Income Approach. B) Expenditure Approach. C) Industrial Origin Approach. D) Factor Approach. Show Answer Correct Answer: A) Income Approach. 19. What does Money GNP measure? A) The actual quantity of goods produced. B) The value of goods and services at current market prices. C) The level of inflation in the economy. D) The total income earned by citizens abroad. Show Answer Correct Answer: B) The value of goods and services at current market prices. 20. Measuring the sum total of all factor payments will be called, A) Product method. B) Expenditure method. C) Output method. D) Income method. Show Answer Correct Answer: D) Income method. 21. In the context of national income accounting, what would be an example of an intermediate good? A) Flour used to make bread. B) Bread sold at a bakery. C) Computers used in an office. D) Office furniture purchased by a company. Show Answer Correct Answer: A) Flour used to make bread. 22. In 1959, government purchases accounted for A) 22 percent of U.S. GNP. B) 8.5 percent of U.S. GNP. C) 18 percent of U.S. GNP. D) 38.5 percent of U.S. GNP. E) 48.5 percent of U.S. GNP. Show Answer Correct Answer: A) 22 percent of U.S. GNP. 23. Net National Product equals net domestic product when: A) Factor income from abroad is greater than factor income to abroad. B) Factor income from abroad is less than factor income to abroad. C) Factor income from abroad is equal to factor income to abroad. D) None of these. Show Answer Correct Answer: C) Factor income from abroad is equal to factor income to abroad. 24. Gross Domestic Product at market price measures the monetary value of all final goods and services produced within a country's borders in one year, including indirect taxes and excluding subsidies. Which of the following terms correctly identifies this concept? A) NET DOMESTIC PRODUCT. B) GROSS DOMESTIC PRODUCT AT MARKET PRICE. C) NATIONAL INCOME. D) REAL INCOME. Show Answer Correct Answer: B) GROSS DOMESTIC PRODUCT AT MARKET PRICE. 25. Calculates national income as the total value added at each stage of production, avoiding duplication. A) Product (Output/Value Added) Method. B) Income (Factor Payment) Method. C) Expenditure Method. D) ALL OF THE ABOVE. Show Answer Correct Answer: A) Product (Output/Value Added) Method. ← 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