This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 6 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Evaluate the impact of an increase in government borrowing on the economy's GDP. A) Decrease in GDP. B) Increase in GDP. C) No impact on GDP. D) Increase in exports. Show Answer Correct Answer: A) Decrease in GDP. 2. National income equals GNP A) Less depreciation, less net unilateral transfers. B) Less depreciation or net unilateral transfers. C) Plus depreciation, less net unilateral transfers. D) Plus depreciation, plus net unilateral transfers. E) Less depreciation, plus net unilateral transfers. Show Answer Correct Answer: E) Less depreciation, plus net unilateral transfers. 3. One use of national income data is to: A) Measure the level of economic development. B) Increase inflation automatically. C) Eliminate unemployment immediately. D) Reduce population growth directly. Show Answer Correct Answer: A) Measure the level of economic development. 4. The most appropriate measure of a country's economic growth is A) GDP. B) NDP. C) Per capita real income. D) GNP. Show Answer Correct Answer: C) Per capita real income. 5. How is Gross Domestic Product defined? A) Total population of a country. B) Total government spending. C) Total land area of a country. D) Indicator of the overall output or production of an economy. Show Answer Correct Answer: D) Indicator of the overall output or production of an economy. 6. What does GNP stand for? A) Gross National Profit. B) Gross Net Product. C) General National Product. D) Gross National Product. Show Answer Correct Answer: D) Gross National Product. 7. National income statistics help governments to: A) Plan economic policies. B) Control weather changes. C) Increase the birth rate. D) Guarantee equal income for all. Show Answer Correct Answer: A) Plan economic policies. 8. One of the problem regarding the calculation of national income is A) Inflation. B) Unemployment. C) Deficit balance of payments. D) Double counting. Show Answer Correct Answer: D) Double counting. 9. What is the main problem associated with the product method of calculating national income? A) Double counting. B) Illiteracy. C) Lack of expertise. D) Inadequate data. Show Answer Correct Answer: A) Double counting. 10. How would an increase in exports and a decrease in imports affect the net exports component in the expenditure approach of GDP calculation? A) Increase net exports. B) Decrease net exports. C) No change in net exports. D) Increase imports. Show Answer Correct Answer: A) Increase net exports. 11. Real GNP adjusts for which of the following factors? A) Population growth. B) Inflation. C) Interest rates. D) Unemployment. Show Answer Correct Answer: B) Inflation. 12. ..... are defined at a particular point of time. A) Stocks. B) Flow. C) All the above. D) None of the above. Show Answer Correct Answer: A) Stocks. 13. Calculate Gross National Disposable Income from the following data:(Rs. In Crores) (1) National income 2000 (2) Net current transfer from rest of the world 200 (3) Consumption of fixed capital 100 (4) Net factor income from abroad (-)50 (5) Net indirect taxes 250 A) 2500 crore. B) 2550 crore. C) 2600. D) 2700. Show Answer Correct Answer: B) 2550 crore. 14. Border workers of india going to Nepal daily for work is a part A) Normal residents of india. B) Non residents of India. C) Nirmal residents of Nepal. D) All of these. Show Answer Correct Answer: A) Normal residents of india. 15. Which of the following is a final expenditure? A) Car purchased by a dealer. B) Vegetables purchased by a restaurant. C) Milk purchased by a tea-maker. D) Car purchased by a household. Show Answer Correct Answer: D) Car purchased by a household. 16. Is 'production for self-consumption by farmer' included in estimating a country's national income? A) Included. B) Not included. C) Cannot determine. D) Partially included. Show Answer Correct Answer: A) Included. 17. Transfer payments are not included in the calculation of national income because ..... A) Transfer payment are not included in production costs. B) This will avoid the problem of double counting. C) Transfer payment are a source of income from unproductive factors. D) Transfer payments are a source of personal income. Show Answer Correct Answer: C) Transfer payment are a source of income from unproductive factors. 18. Net National Product equals: A) Gross National Product adjusted for inflation. B) Gross Domestic Product adjusted for inflation. C) Gross Domestic Product plus net property income from abroad. D) Gross National Product minus depreciation. Show Answer Correct Answer: D) Gross National Product minus depreciation. 19. Match the following and choose the correct option:(I).car purchased by a travel agency A) Consumption Good (II). sugar purchased by household (B). Intermediate Good (III) sugarcane purchased by sugar mill (C). Capital Good A) I (A), II (B) And III(C). B) I (C), II (A) And III(B). C) I (A), II (C) And III(B). D) I (B), II (C) And III(C). Show Answer Correct Answer: B) I (C), II (A) And III(B). 20. Which of the following is counted in Gross Domestic Product (GDP)? A) Illegal production. B) Household production. C) Consumer spending. D) Leisure time. Show Answer Correct Answer: C) Consumer spending. 21. Food allowances for factory employees ..... A) Charity allowance. B) Scholarships for undergraduates. C) Allowances for housewives. D) Food allowances for factory employees. Show Answer Correct Answer: D) Food allowances for factory employees. 22. A computation approach that adds up all the expenses of the end-users of the output produced in a given year A) Factor Income Approach. B) Industry Origin Approach. C) Final Expenditure Approach. D) Pie Added Approach. Show Answer Correct Answer: C) Final Expenditure Approach. 23. Total market value of all final goods and services produced by the RESIDENTS of a country during a given period of time. A) Gross Domestic Product. B) Gross National Product. C) Gross National Income. D) Gross Per Capita Income. Show Answer Correct Answer: B) Gross National Product. 24. Unpaid activities such as housewife works example like washing, cleaning and childminding are NOT included in the calculation of national income. A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 25. Export and import of a country is counted under which head while estimating national income? A) Income head. B) Output head. C) Tax head. D) Expenditure head. Show Answer Correct Answer: D) Expenditure head. ← 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 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