This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 5 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is depreciation? A) Capital loss. B) Fixed capital loss. C) Consumption of fixed capital. D) None. Show Answer Correct Answer: C) Consumption of fixed capital. 2. The German government carries out an official foreign exchange intervention in which it uses dollars held in an American bank to buy French currency from its citizens. How is this accounted for in the balance of payments? A) Current account, French good export. B) Current account, German good import. C) Financial account, French asset export. D) Financial account, German asset export. E) All of the above. Show Answer Correct Answer: C) Financial account, French asset export. 3. The standard of living is often measured by: A) Real GDP per capita. B) Real GDP. C) Real GDP * population. D) Real GDP plus depreciation. Show Answer Correct Answer: A) Real GDP per capita. 4. Identify the formula to calculate net indirect tax. A) Indirect tax + Subsidies. B) Indirect tax-Subsidies. C) Operating surplus + Subsidies. D) Indirect tax-Depreciation. Show Answer Correct Answer: B) Indirect tax-Subsidies. 5. As a result of double counting, national income is: A) Over estimated. B) Under estimated. C) Correctly estimated. D) Not estimated for the entire year of accounting. Show Answer Correct Answer: A) Over estimated. 6. Critique the use of nominal GDP as a measure of economic growth without considering inflation. A) Nominal GDP is accurate. B) Nominal GDP is inaccurate. C) Nominal GDP is sufficient. D) Nominal GDP is not applicable. Show Answer Correct Answer: B) Nominal GDP is inaccurate. 7. Sector which transforms one physical good in to another physical good A) Territiary sector. B) Secondary sector. C) Primary sector. D) Joint sector. Show Answer Correct Answer: B) Secondary sector. 8. Secondary sectors comprise ..... A) Agriculture, forestry, fishing and farming. B) Banking, transportation, communication. C) Manufacturing, construction, utility supply. D) Fishing and forestry. Show Answer Correct Answer: C) Manufacturing, construction, utility supply. 9. Which measure of income refers to the total income received by households, including wages, salaries, commissions, bonuses, pensions, social benefits, and transfer payments, but excluding retained corporate profits and corporate taxes? A) PRIVATE INCOME. B) NATIONAL INCOME. C) PERSONAL INCOME. D) DOMESTIC INCOME. Show Answer Correct Answer: C) PERSONAL INCOME. 10. National income data is used for ..... A) Analyzing output quality. B) Measuring unemployment rate. C) Determining the foreign exchanges rates. D) Designing economic sector activities. Show Answer Correct Answer: D) Designing economic sector activities. 11. Which method measures national income by summing all final goods and services produced within a country in a given year? A) Income Approach. B) Expenditure approach. C) Output approach. D) Value-added approach. Show Answer Correct Answer: B) Expenditure approach. 12. All of the following are related to economic investment except A) The purchase of bus transport by a transport company. B) The piling up of inventories on a grocer's shelf. C) Using bus services to go to Muara. D) The purchase of computers by ali's internet cafe. Show Answer Correct Answer: C) Using bus services to go to Muara. 13. A country's Real GNP increased from $ 1 trillion to $ 1.2 trillion after adjusting for inflation. What can be inferred about the country's economic growth? A) Economic growth decreased. B) Economic growth remained constant. C) Economic growth increased. D) Economic growth cannot be determined. Show Answer Correct Answer: C) Economic growth increased. 14. Transfer Income, Income from sale of 2nd hand goods are always included in National Income. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 15. The formula for GDP (FC) is GDP(MP) + Subsidy-Indirect Tax A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 16. National income accountants can avoid multiple counting by A) Including transfer payments in their calculations. B) Only counting final goods. C) Counting both intermediate and final goods. D) Only counting intermediate goods. Show Answer Correct Answer: B) Only counting final goods. 17. If a country's GDP is $ 500 billion and net income from abroad is-$ 20 billion, what is the country's GNP? A) $ 480 billion. B) $ 500 billion. C) $ 520 billion. D) $ 480 million. Show Answer Correct Answer: A) $ 480 billion. 18. Which of the following is a final good or service? A) Diesel fuel bought for a delivery truck. B) Fertilizer purchased by a farm supplier. C) A haircut. D) Chevrolet windows purchased by a General Motors assembly plant. Show Answer Correct Answer: C) A haircut. 19. Apa kaedah yang digunakan untuk mengira pendapatan negara dengan menambah nilai tambah oleh pelbagai sektor ekonomi? A) Kaedah Pendapatan (Income Method). B) Kaedah Susut Nilai (Depreciation Method). C) Kaedah Keluaran (Value Added). D) Kaedah Perbelanjaan (Expenditure Method). Show Answer Correct Answer: C) Kaedah Keluaran (Value Added). 20. You travel to Paris and pay for a $ 100 dinner with your credit card. How is this accounted for in the balance of payments? A) Current account, French service import. B) Current account, U.S. good export. C) Financial account, U.S. asset export. D) Financial account, U.S. asset import. E) Financial account, French asset export. Show Answer Correct Answer: C) Financial account, U.S. asset export. 21. The compensation received by individuals as compensation for their labor services. A) Wages or Salaries. B) Interest. C) Rent. D) Profit. Show Answer Correct Answer: A) Wages or Salaries. 22. The value of subsidies is RM20 million, indirect taxes is RM15 million and gross domestic product at market price is RM200 million. Calculate the gross domestic product at factor cost A) RM201 million. B) RM203 million. C) RM204million. D) RM205 million. Show Answer Correct Answer: D) RM205 million. 23. The money used to create infrastructures and public services from the taxes paid by citizens. A) Consumption. B) Investment. C) Government Expenditure. D) Net Export. Show Answer Correct Answer: C) Government Expenditure. 24. Tax imposed on the net profit of the company is called A) Corporate tax. B) Indirect tax. C) Income tax. D) Direct tax. Show Answer Correct Answer: A) Corporate tax. 25. Which of the following is included in national income:i. Vegetables obtained from kitchen garden ii. A teacher teaching his own son at his home A) A. i only. B) C. Both i & ii. C) D. None of the above. D) None of the above. Show Answer Correct Answer: C) D. 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