This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 3 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Personal income is derived from national income by: A) Subtracting transfer payments. B) Subtracting personal taxes. C) Subtracting undistributed corporate profits and social security contributions, then adding transfer payments. D) Adding retained earnings. Show Answer Correct Answer: C) Subtracting undistributed corporate profits and social security contributions, then adding transfer payments. 2. Political stability and level of specialization are among the factors that affect the national income of a particular country. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 3. Transfer payments refer to payments, which are made: A) Without any exchange of goods and services. B) To workers on transfer from one job to another. C) As compensation to employees. D) None of the above. Show Answer Correct Answer: A) Without any exchange of goods and services. 4. How do we allocate statistical discrepancy among the current, capital, and financial accounts? A) We have no way of knowing exactly how to allocate this discrepancy. B) Depend on the degree of certainty which we attribute to these accounts. C) Divide it evenly amongst the three accounts. D) Depend on the convention adopted by the specific financial institution. E) Statistical discrepancy signals human errors made when dealing with financial accounts. Show Answer Correct Answer: A) We have no way of knowing exactly how to allocate this discrepancy. 5. By deducting undistributed profit from national income, we get, A) Personal disposable income. B) Personal income. C) Private income. D) Subsidies. Show Answer Correct Answer: B) Personal income. 6. Apakah salah satu masalah yang berkaitan dengan pengiraan KDN disebabkan oleh kesukaran dalam menentukan barang-barang akhir dan barang-barang perantara? A) Pengalihan yang salah. B) Penilaian yang terlalu tinggi. C) Penilaian yang terlalu rendah. D) Pengiraan berganda. Show Answer Correct Answer: D) Pengiraan berganda. 7. Calculate Net value added at factor cost from the following data:Items-Rs. (in lakhs)1. Net value added at factor cost-3002. Intermediate consumption-2003. Indirect tax-204. Depreciation-305. Change ins tock-(-)50 A) Rs. 550 lakhs. B) Rs. 600 lakhs. C) Rs. 500 lakhs. D) Rs. 650 lakhs. Show Answer Correct Answer: B) Rs. 600 lakhs. 8. Which component of the expenditure approach represents spending by households on goods and services? A) Consumption. B) Investment. C) Government Spending. D) Net Exports. Show Answer Correct Answer: A) Consumption. 9. Money supply in an economy is a ..... concept . A) Flow. B) Stock. C) Both stock and flow. D) Only stock. Show Answer Correct Answer: D) Only stock. 10. A country's current account A) Balance equals the change in its net foreign wealth. B) Balance equals the change in its foreign wealth. C) Surplus equals the change in its foreign wealth. D) Deficit equals the change in its foreign wealth. E) None of the above. Show Answer Correct Answer: A) Balance equals the change in its net foreign wealth. 11. Which is an example of a final good or service A) Coffee Beans at Starbucks. B) T-Shirt at Polo Store. C) Lumber at furniture store. D) Wheat at a bakery. Show Answer Correct Answer: B) T-Shirt at Polo Store. 12. What is the problem of Expertise in calculating National Income? A) Lack of professionals such as statisticians, researchers, programmers, and analysts. B) Abundance of professionals such as statisticians, researchers, programmers, and analysts. C) No need for professionals such as statisticians, researchers, programmers, and analysts. D) Limited professionals such as statisticians, researchers, programmers, and analysts. Show Answer Correct Answer: A) Lack of professionals such as statisticians, researchers, programmers, and analysts. 13. National Income differs from Net National Product at market price by the amount of: A) Current transfers from rest of the world. B) Net Indirect Taxes. C) National debt interest. D) It does not differ. Show Answer Correct Answer: B) Net Indirect Taxes. 14. Adds up all incomes earned by factors of production is ..... approach A) Expenditure. B) Income. C) Output. D) All answer. Show Answer Correct Answer: B) Income. 15. Calculate Operating Surplus When:-Rent=1000 crInterest=500 crRoyalty= 700 crProfit= 1300 crSalaries= 500cr A) 3500 cr. B) 4000cr. C) 3000 cr. D) 1700 cr. Show Answer Correct Answer: A) 3500 cr. 16. GDP data are criticized as being inaccurate measures of economic welfare because A) They do not take into account changes in the amount of leisure. B) They do not take into account all changes in product quality. C) They do not take into account the adverse effects of economic activity on the environment. D) Of all of the above considerations. Show Answer Correct Answer: D) Of all of the above considerations. 17. Produces goods/services, pays factor income, and pays taxes. A) HOUSEHOLD SECTOR. B) FIRM. C) GOVERNMENT. D) REST OF THE WORLD. Show Answer Correct Answer: B) FIRM. 18. Which of the following is a measure of the efficiency of all inputs to a production process? A) Capital Deepening. B) Multifactor Productivity. C) Productivity. D) Labor Input. Show Answer Correct Answer: B) Multifactor Productivity. 19. Setup Corporation buys $ 100, 000 of sand, rock, and cement to produce redi-mix concrete. It sells 10, 000 cubic yards of concrete at $ 30 a cubic yard. The value added by Setup Corporation is: A) $ 300, 000. B) $ 100, 000. C) $ 200, 000. D) Zero. Show Answer Correct Answer: C) $ 200, 000. 20. National Income doesn't include: A) The payments by the household to firm for the purchase of goods and services. B) Interest on unproductive national debt. C) Income for government expenditure. D) Undistributed profit. Show Answer Correct Answer: B) Interest on unproductive national debt. 21. The difficulty of calculating national income arises because: A) All incomes are reported accurately. B) Non-monetary activities are hard to measure. C) Prices remain constant. D) Data collection is simple. Show Answer Correct Answer: B) Non-monetary activities are hard to measure. 22. If GDP = RM500 billion, Net factor income from abroad = RM20 billion, and depreciation = RM30 billion, what is NNP at market prices? A) RM490 billion. B) RM520 billion. C) RM530 billion. D) RM590 billion. Show Answer Correct Answer: A) RM490 billion. 23. This term refers to the increment in amount of goods and services produced by an economy. A) Economic Growth. B) Economic System. C) Economic Development. D) Economic sustainability. Show Answer Correct Answer: A) Economic Growth. 24. Measures national income by summing household consumption, government spending, investment, and net exports. A) Product (Output/Value Added) Method. B) Income (Factor Payment) Method. C) Expenditure Method. D) ALL OF THE ABOVE. Show Answer Correct Answer: C) Expenditure Method. 25. When will NDP at market price be equal to NDP at factor cost? A) Indirect taxes=subsidy. B) Indirect taxes >subsidy. C) Indirect taxes < subsidy. D) None of these. Show Answer Correct Answer: A) Indirect taxes=subsidy. ← 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 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 10Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books