This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting – Quiz 23 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 23 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Evaluate the impact of an increase in imports on a country's GNP. A) Increase GNP. B) Decrease GNP. C) No impact on GNP. D) Impact depends on other factors. Show Answer Correct Answer: C) No impact on GNP. 2. Which service is included in Tertiary Sector? A) Mining. B) Construction. C) Communication. D) Animal Husbandry. Show Answer Correct Answer: C) Communication. 3. In the context of the industrial origin approach, what innovative method could be devised to enhance the contribution of the service sector to national income? A) Offering tax breaks to service sector businesses. B) Introducing vocational training programs for service industry workers. C) Investing in advanced technology for service delivery. D) Encouraging partnerships between service firms and universities for research. Show Answer Correct Answer: C) Investing in advanced technology for service delivery. 4. The study of national income is related to A) Micro economics. B) Macro economics. C) All the above. D) None of the above. Show Answer Correct Answer: B) Macro economics. 5. What are the two reasons people buy goods for? A) To increase taxes. B) To support local businesses. C) Intermediate goods and final goods. D) To reduce production costs. Show Answer Correct Answer: C) Intermediate goods and final goods. 6. When economists estimate Gross Domestic Product using the income approach, which types of income are included? A) Rent, wages, interest, and profit. B) Profit, depreciation, and interest. C) Wages, interest, and taxes. D) Profit, wages, interest, and land. Show Answer Correct Answer: A) Rent, wages, interest, and profit. 7. An upward movement in the curve relating consumption to national income could be caused by A) A reduction in taxation. B) An increase in investment. C) An increase in national income. D) An increase in savings. Show Answer Correct Answer: A) A reduction in taxation. 8. Apakah definisi Keluaran Dalam Negeri Kasar (KDNK)? A) Nilai barang dan perkhidmatan akhir yang dihasilkan oleh faktor-faktor pengeluaran di sebuah negara dalam satu tahun. B) Nilai eksport dikurangkan import di sebuah negara dalam satu tahun. C) Nilai belanja kerajaan di sebuah negara dalam satu tahun. D) Nilai pendapatan keseluruhan yang diperoleh oleh warganegara di sebuah negara dalam satu tahun. Show Answer Correct Answer: A) Nilai barang dan perkhidmatan akhir yang dihasilkan oleh faktor-faktor pengeluaran di sebuah negara dalam satu tahun. 9. Assertion (A):production of food grain for self-consumption is included in GDP:Reason (R):GDP is market value of final product produced within domestic Territory of a country in a financial year: A) Assertion (A) and Reason (R) are true and R is correct explanation of A. B) Assertion (A) and Reason (R) are true and R is not correct explanation of A. C) Assertion (A) is false and Reason (R) is true . D) Assertion (A) is true and Reason (R) is false. Show Answer Correct Answer: C) Assertion (A) is false and Reason (R) is true . 10. What are the two sectors involved in the circular flow of income? A) Government and households. B) Firms and households. C) Producers and consumers. D) Investors and entrepreneurs. Show Answer Correct Answer: B) Firms and households. 11. How would an increase in government subsidies to farmers affect the income approach calculation of national income? A) Increase in national income. B) Decrease in national income. C) No change in national income. D) Increase in imports. Show Answer Correct Answer: A) Increase in national income. 12. How does the government participate in the circular flow of income? A) By collecting taxes and making payments. B) By selling goods and services to households. C) By paying interest to firms. D) By only collecting taxes. Show Answer Correct Answer: A) By collecting taxes and making payments. 13. What does the term "factor cost" refer to? A) Price of output valued based on the cost of factors of production. B) Current price in the market through demand and supply. C) Price paid by consumers. D) None of the above. Show Answer Correct Answer: A) Price of output valued based on the cost of factors of production. 14. Expenditure approach components are consumption, inventory, government spending & capital consumption A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 15. In using the expenditure approach to GDP, consumption A) Includes houses and services. B) Includes consumers spending on durable good, and nondurable goods, and services. C) Includes consumer durables, semi durables, nondurable goods, but excludes services. D) Includes houses and all purchases by business firms. Show Answer Correct Answer: B) Includes consumers spending on durable good, and nondurable goods, and services. 16. The money used to create new money for capital coming from savings A) Consumption. B) Investment. C) Government Expenditure. D) Net Export. Show Answer Correct Answer: B) Investment. 17. The value of which work is added in the calculation of GDP? A) Housewives' works. B) A teacher teaching his own child. C) The value of resale of old shares. D) Construction of new house by an artisan. Show Answer Correct Answer: D) Construction of new house by an artisan. 18. National income after allowing for inflation. A) Disposable Income. B) Real National Income. C) Nominal National Income. D) Per Capita Income. Show Answer Correct Answer: B) Real National Income. 19. Which of the following best describes the circular flow of income? A) A model showing the flow of goods and services in a market. B) A model depicting how money flows through the economy. C) A method for calculating GDP. D) A theory of economic growth. Show Answer Correct Answer: B) A model depicting how money flows through the economy. 20. If NDP at factor cost = Rs 2000 and net factor income from abroad =(-)500, then NNP at factor cost will be: A) 2500. B) 1000. C) 1500. D) 2000. Show Answer Correct Answer: C) 1500. 21. If in an economy, the value of Net Factor Income from Abroad is Rs. 500 crores and the value of Factor Income to Abroad is Rs. 150 crores, identify the value of Factor Income from Abroad. A) Rs. 250 crores. B) Rs. (-)350 crores. C) Rs. 360 crores. D) Rs. 650 crores. Show Answer Correct Answer: D) Rs. 650 crores. 22. GNP equals GDP A) Minus net receipts of factor income from the rest of the world. B) Plus receipts of factor income from the rest of the world. C) Minus receipts of factor income from the rest of the world. D) Plus net receipts of factor income from the rest of the world. E) Minus depreciation. Show Answer Correct Answer: D) Plus net receipts of factor income from the rest of the world. 23. To avoid double counting when GDP is estimated, economists: A) Use GDP deflator. B) Calculate value added at each stage of production. C) Use retail prices. D) Use price of only intermediate goods. Show Answer Correct Answer: B) Calculate value added at each stage of production. 24. Calculate MISE, WhenNDP (FC)= 1000CRCOE=200CROS=500CR A) 300CR. B) 1700CR. C) 800CR. D) 1200 CR. Show Answer Correct Answer: A) 300CR. 25. Gross Domestic Product (GDP) includes ..... A) Final goods only. B) Intermediate and final goods. C) Intermediate goods only. D) Neither intermediate nor final goods. Show Answer Correct Answer: A) Final goods only. ← 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