This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 22 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If factor cost is equal to market price, then it means that: A) Indirect Taxes is greater than Subsidies. B) Indirect Taxes is equal to Subsidies. C) Indirect Taxes is less than Subsidies. D) None of these. Show Answer Correct Answer: B) Indirect Taxes is equal to Subsidies. 2. What is the problem of Double Counting in calculating National Income? A) Possibility of intermediate goods being included in the national income more than once. B) No possibility of intermediate goods being included in the national income more than once. C) High possibility of intermediate goods being included in the national income more than once. D) Limited possibility of intermediate goods being included in the national income more than once. Show Answer Correct Answer: A) Possibility of intermediate goods being included in the national income more than once. 3. A U.S. citizen buys a newly issued share of stock in England, paying for his order with a check, which the British company deposits in its own U.S. bank account in New York. How is this transaction accounted for in the balance of payments? A) Financial account, U.S. asset import. B) Current account, U.S. service import. C) Current account, British good export. D) Financial account, British asset import. E) Financial account, U.S. asset export. Show Answer Correct Answer: A) Financial account, U.S. asset import. 4. The real GNP is estimated on the basis of ..... A) Previous Year price. B) Constant Year price. C) Current Year. D) Next Year Price. Show Answer Correct Answer: B) Constant Year price. 5. The income of unincorporate business either sole proprietorship or partnership is defined as proprietor's income. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 6. ..... is the flow of money between firms and households. A) Circular Flow. B) Money flow. C) Real flow. D) None of the above. Show Answer Correct Answer: B) Money flow. 7. Which one of the following expressions is the most accurate? A) CA = EX-IM. B) CA = IM-EX. C) CA = EX = IM. D) CA = EX + IM. E) None of the above. Show Answer Correct Answer: A) CA = EX-IM. 8. Net unilateral transfers A) Are part of a national income. B) Are part of a country's product. C) Must be added to NNP in calculations of national income. D) Are part of a country's GNP. E) Only A and C. Show Answer Correct Answer: E) Only A and C. 9. The value of national output produced by residents located within the country, before depreciation and including the influence of taxes and subsidies, is known as: A) GDP at factor cost. B) GDP at market prices. C) GNP at market prices. D) GNP at factor cost. Show Answer Correct Answer: B) GDP at market prices. 10. Scarcity of resources implies that: A) People are greedy. B) We should curtail our wants. C) We should increase resources. D) We cannot satisfy all wants at the same time. Show Answer Correct Answer: D) We cannot satisfy all wants at the same time. 11. Read the following statements and choose the correct alternatives among those given below:Statement 1:Gross investment includes only inventory. Statement 2:Gross investment shows net addition to the existing capital stock. A) Both the statements are true. B) Both the statements are false. C) Statement 1 is true and statement 2 is false. D) Statement 2 is true and statement 1 is false. Show Answer Correct Answer: D) Statement 2 is true and statement 1 is false. 12. Milk Purchased by households for consumption is an example of Final Goods. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 13. Goods like food clothing, and services like recreation that are consumed when purchased by their ultimate consumer are called ..... A) Capital goods. B) Consumer goods. C) Intermediate goods. D) None of the above. Show Answer Correct Answer: B) Consumer goods. 14. National incomes which have been adjusted by deducting the value of subsidies and adding the amount of indirect taxes. (-) subsidies, (+) tax A) At constant prices. B) At current prices. C) At factor cost. D) At market price. Show Answer Correct Answer: D) At market price. 15. In an open economy, private saving, , 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). 16. The main factor that differentiates gross domestic product from gross national product is ..... A) Inflow and outflow of capital. B) Income from investment. C) Foreign investment. D) Exports and imports of goods. Show Answer Correct Answer: C) Foreign investment. 17. Government provides social security benefits such as unemployment allowance, old-age pensions also known as ..... A) Undistributed profit. B) Transfer payment. C) Gross Domestic Product. D) National Income. Show Answer Correct Answer: B) Transfer payment. 18. The difference between gross national income and gross domestic income is ..... A) Net factor income from abroad. B) Depreciation. C) Indirect taxes. D) Subsidies. Show Answer Correct Answer: A) Net factor income from abroad. 19. What is the total market value of all final goods and services produced within a given period of time by factors of production located within a country? A) NNP. B) GDP. C) GNP. D) GDB. Show Answer Correct Answer: B) GDP. 20. The position of the United States current account balance in 2009 was A) Lent over 6 percent of its GNP, resulting in a large current account surplus. B) Borrowed over 9 percent of its GNP, leading to a large current account deficit. C) Achieved a currant account balance of zero. D) Borrowed over 10 percent of its GNP, leading to a large current account deficit. E) Borrowed less then 5 percent of its GNP, leading to a large current account surplus. Show Answer Correct Answer: B) Borrowed over 9 percent of its GNP, leading to a large current account deficit. 21. The level of economic welfare of a country is indicated by the ..... A) Gross national product per capita data. B) Per capita income data. C) National income data. D) Net national product data. Show Answer Correct Answer: B) Per capita income data. 22. In a four-sector economy, which of the following is included? A) Households, firms, government, and international sector. B) Households, firms, banks, and government. C) Households, firms, banks, and international sector. D) Households, firms, banks, and NGOs. Show Answer Correct Answer: A) Households, firms, government, and international sector. 23. Which one of the following is not included in NI? A) Old age pension. B) Retirement pension. C) Wages. D) Bonus. Show Answer Correct Answer: A) Old age pension. 24. Which of the following is not a component of the income approach in National Income Accounting? A) Wages and Salaries. B) Profits. C) Taxes. D) Rents. Show Answer Correct Answer: C) Taxes. 25. In GNP calculation which of the following should be excluded? A) Rental incomes. B) Interest payments. C) Dividends. D) Government transfer payment. Show Answer Correct Answer: D) Government transfer payment. ← 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