This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting – Quiz 25 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 25 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the example of Factors of Production given by the household? A) Import. B) Raw Materials. C) Tax. D) Loan. Show Answer Correct Answer: B) Raw Materials. 2. Evaluate the significance of a decrease in business investments for long-term economic growth. A) Negative impact on long-term economic growth. B) Positive impact on long-term economic growth. C) No impact on long-term economic growth. D) Increase in exports. Show Answer Correct Answer: A) Negative impact on long-term economic growth. 3. Which phase of the business cycle is characterized by a decrease in GDP for two consecutive quarters? A) Expansion. B) Trough. C) Peak. D) Recession. Show Answer Correct Answer: D) Recession. 4. Difference between gross national product at a factors cost (GNPfc) and gross domestic product at market price (GDPmp) is caused by ..... A) Subsidies and indirect taxes. B) Depreciation value and indirect taxes. C) Net factors income from abroad and depreciation value. D) Net factor income from abroad, subsidies and indirect tax. Show Answer Correct Answer: D) Net factor income from abroad, subsidies and indirect tax. 5. What is GDP per capita? A) GDP divided by the value of capital inputs. B) GDP divided by the population. C) GDP divided by the number of workers. D) GDP divided by the number of weeks in the year. Show Answer Correct Answer: B) GDP divided by the population. 6. Governments and economists focus more on real GDP growth than nominal GDP growth A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 7. The problem of double counting in measuring GDP can be avoided by A) Including the values of the intermediate and final goods produced. B) Deducting indirect taxes and adding subsidies to the value of output. C) Deducting the value of goods imported from the value of goods exported. D) Including the value of all final goods and services produced. Show Answer Correct Answer: D) Including the value of all final goods and services produced. 8. Derive the best statement referring to a nation's gross domestic product (GDP) A) The market value of intermediate products. B) The market value of both final and intermediate products. C) The sum of the market value of final products produced and imported. D) The total final value created by the factor of production available within a country in a year. Show Answer Correct Answer: D) The total final value created by the factor of production available within a country in a year. 9. The payment for the use of land and natural resources A) Wages or Salaries. B) Interest. C) Rent. D) Profit. Show Answer Correct Answer: C) Rent. 10. A country with a current account deficit must be increasing its net foreign debts by the amount of the deficit. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 11. What does Real GDP per capita provide an estimate of? A) Average number of hours worked per person. B) Total imports and exports. C) Total government revenue. D) Average output of a person in an economy. Show Answer Correct Answer: D) Average output of a person in an economy. 12. Which of the following is true regarding GNP and GDP? A) GNP is always higher than GDP. B) GDP is always higher than GNP. C) GNP and GDP are equal. D) The relationship between GNP and GDP depends on the country's economic structure. Show Answer Correct Answer: D) The relationship between GNP and GDP depends on the country's economic structure. 13. If for a country net factor income from abroad is negative then: A) GDP < GNP. B) GDP > GNP. C) GDP $\geq$ GNP. D) GDP = GNP. Show Answer Correct Answer: B) GDP > GNP. 14. What is the formula for Disposable Personal Income (DPI)? A) Personal Income-Personal Income Tax. B) National Income + Transfer Payments-Corporate Income Taxes. C) Gross National Income-Depreciation. D) Gross Domestic Product + Net Factor Income Abroad. Show Answer Correct Answer: A) Personal Income-Personal Income Tax. 15. The industrial origin approach categorizes economic activities into different ..... A) Sectors. B) Countries. C) Continents. D) Time Periods. Show Answer Correct Answer: A) Sectors. 16. When analyzing the relationship between net exports and GDP, if a country has a trade surplus, what does it indicate? A) Exports are higher than imports. B) Imports are higher than exports. C) The country is in recession. D) GDP is decreasing. Show Answer Correct Answer: A) Exports are higher than imports. 17. The market price of all final goods of a country in a year is known as: A) GDP at Market Price. B) GDP at Factor Cost. C) NNP at factor cost. D) None. Show Answer Correct Answer: A) GDP at Market Price. 18. What does Gross Domestic Product (GDP) measure? A) Total output within a country's borders. B) Income earned by citizens abroad. C) Total output produced by a country's residents globally. D) Net income from abroad. Show Answer Correct Answer: A) Total output within a country's borders. 19. The total market value of all final goods and services produced within a period of time by Malaysians, refers to A) Net National Product. B) Gross Domestic Product. C) Gross National Product. D) Net national Income. Show Answer Correct Answer: B) Gross Domestic Product. 20. The difference between gross national product at market price and gross national product at factor cost is ..... A) Exports and imports. B) Net factor income from abroad. C) Subsidies and indirect taxes. D) Depreciation. Show Answer Correct Answer: C) Subsidies and indirect taxes. 21. Government savings, Sg, is equal to A) T-G. B) T + G. C) T = G. D) T + G-I. E) None of the above. Show Answer Correct Answer: A) T-G. 22. Create a scenario where a country's Real GNP decreases while its Money GNP increases. A) Inflation rate is higher than the nominal growth rate. B) Inflation rate is lower than the nominal growth rate. C) Population growth rate is higher than the inflation rate. D) Population growth rate is lower than the inflation rate. Show Answer Correct Answer: A) Inflation rate is higher than the nominal growth rate. 23. Of the following, which is not included in the calculation of national income? A) Undistributed corporate income. B) Tax on corporate profits. C) EPF contributions. D) Depreciation. Show Answer Correct Answer: D) Depreciation. 24. What is the purpose of measuring depreciation? A) To calculate the value of intermediate goods. B) To estimate the value of final goods. C) To measure the wear and tear of capital goods. D) To determine the value of consumer durables. Show Answer Correct Answer: C) To measure the wear and tear of capital goods. 25. The approach of computing GDP by adding up the amount of final goods and services produced in the economy during a given period is the A) Income approach. B) Output approach. C) Expenditure approach. D) Circular approach. Show Answer Correct Answer: C) Expenditure approach. ← 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