This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting – Quiz 24 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 24 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If the total output is higher the amount of consumer goods that can be produced would be? A) Higher. B) Lower. C) Equal. D) None of the above. Show Answer Correct Answer: A) Higher. 2. Real national income means the national income measured in terms of. A) Retail prices. B) Constant prices. C) Current prices. D) Wholesale prices. Show Answer Correct Answer: B) Constant prices. 3. Which economic indicator changes after the economy has already begun to follow a particular trend? A) Coincident Indicators. B) Predictive Indicators. C) Leading Indicators. D) Lagging Indicators. Show Answer Correct Answer: D) Lagging Indicators. 4. In country 'X', if NNP at market price remained constant and depreciation increased compared to the previous year, then GNP at market prices will A) Increase. B) Decrease. C) Increase by an amount equal to rise in depreciation. D) Decrease by an amount equal to rise in depreciation. Show Answer Correct Answer: C) Increase by an amount equal to rise in depreciation. 5. These are the problems in measuring national income EXCEPT: A) Double counting. B) Depreciation. C) Lack of data. D) Indicate the standard of living. Show Answer Correct Answer: D) Indicate the standard of living. 6. Which of the following refers to money flows in an economy? A) Flow of factor services from households to business. B) Flow of money across different sectors of the economy. C) Flow of goods from firms to households. D) Flow of services from firms to households. Show Answer Correct Answer: B) Flow of money across different sectors of the economy. 7. What does Real GNP measure? A) Nominal value of goods produced. B) Quantity of goods produced. C) Value of goods adjusted for inflation. D) Value of goods adjusted for exchange rates. Show Answer Correct Answer: C) Value of goods adjusted for inflation. 8. In the industrial origin approach, if the manufacturing sector experiences significant growth compared to other sectors, what would likely happen to national income? A) Increase in national income. B) Decrease in national income. C) No change in national income. D) Increase in exports. Show Answer Correct Answer: A) Increase in national income. 9. Financial assistance and scholarship are the examples of A) National income. B) Personal income. C) Transfer payment. D) Per capita income. Show Answer Correct Answer: C) Transfer payment. 10. Net National Product also known as ..... A) Gross Domestic Product. B) Gross National Product. C) Gross Capita Income. D) Capital consumption. Show Answer Correct Answer: B) Gross National Product. 11. What is Gross Domestic Product used as an indicator of? A) Unemployment rate. B) Inflation rate. C) Interest rate. D) Indicator of Overall output or production of an economy. Show Answer Correct Answer: D) Indicator of Overall output or production of an economy. 12. A nation's gross domestic product (GDP): A) Is the money value of the total output produced within the borders of the nation. B) Is the money value of the total output produced by its citizens, regardless of where they are living. C) Can be found by summing C + I + S + X M. D) Is always some amount less than its C + I + G + X M. Show Answer Correct Answer: A) Is the money value of the total output produced within the borders of the nation. 13. It is necessary to add ..... to convert GNP factor cost to GNP at market price. A) Expenditure on import. B) Gross trading profits of companies. C) Indirect taxes and subtract subsidies. D) Current and capital expenditure by the central government. Show Answer Correct Answer: C) Indirect taxes and subtract subsidies. 14. Real national income measures: A) Nominal national income adjusted for population change. B) Nominal national income adjusted for unemployment. C) Nominal national income adjusted for inflation. D) Nominal national income adjusted for exchange rates. Show Answer Correct Answer: C) Nominal national income adjusted for inflation. 15. Which problem arises due to the existence of a large number of non-monetized activities in the agriculture sector? A) Problems of Non-monetized sector. B) Problem of Illiteracy. C) Problem of Expertise. D) Problem of Less Sophisticated Machinery. Show Answer Correct Answer: A) Problems of Non-monetized sector. 16. Manakah salah satu kegunaan data pendapatan? A) Mengukur kadar inflasi. B) Mengukur kadar pengangguran. C) Mengukur kadar pertukaran. D) Mengukur taraf kehidupan. Show Answer Correct Answer: D) Mengukur taraf kehidupan. 17. Which one includes depreciation? A) GNP at market price. B) NNP at market price. C) NNP at factor cost. D) All of these. Show Answer Correct Answer: A) GNP at market price. 18. Real GDP is obtained by A) Nominal GDP minus GDP deflator. B) Nominal GDP divided by CPI. C) Nominal GDP divided by GDP deflator. D) Nominal GDP multiplied by price level. Show Answer Correct Answer: C) Nominal GDP divided by GDP deflator. 19. Purchases by one production unit from other production unit are not always intermediate A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 20. What is the main problem associated with the Income Method? A) Transfer Outcome. B) Transfer Profit. C) Transfer Income. D) Transfer Expenditure. Show Answer Correct Answer: C) Transfer Income. 21. If a country experiences a decrease in the prices of imported raw materials used in manufacturing, how would it impact GDP calculated using the expenditure approach? A) Increase GDP. B) Decrease GDP. C) No change in GDP. D) Increase in net exports. Show Answer Correct Answer: A) Increase GDP. 22. If NFIA is negative the value of which would be greater? A) NNP. B) GNP. C) NNPat FC. D) NDP. Show Answer Correct Answer: D) NDP. 23. The decline in value of capital equipment due to age or wear and tear. A) Declination. B) Depreciation. C) Value Added. D) Real National Income. Show Answer Correct Answer: B) Depreciation. 24. Which of the following best describes national income in the modern sense, as explained by economists like Lipsey, Chrystral, and Ackley, focusing on the value of total output and the incomes generated, including wages, rent, interest, and profit? A) GROSS OUTPUT. B) NATIONAL INCOME. C) PER CAPITA INCOME. D) REAL GDP. Show Answer Correct Answer: B) NATIONAL INCOME. 25. How many approaches in calculating national income? A) 4. B) 3. C) 2. D) 1. Show Answer Correct Answer: B) 3. ← 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