This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 7 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which problem arises due to people underestimating their income to avoid paying higher taxes? A) Problem of False Information. B) Problem of Multi-occupations. C) Problem of Double Counting. D) Problem of Non-monetized sector. Show Answer Correct Answer: A) Problem of False Information. 2. The sale of A) A used textbook does enter GNP. B) A used textbook does not enter GNP, but the sale of a used house does. C) Both a used textbook and a used house do not enter GNP. D) A used house does not enter GNP, but the sale of a used book does. E) None of the above. Show Answer Correct Answer: C) Both a used textbook and a used house do not enter GNP. 3. In measuring the value of production, GDP values then during a certain time frame only. Usually, the period is every six months or three years. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 4. GNP is divided into four possible uses for which a country's final output is purchased: A) Consumption, investment, government purchases, and the current account balance. B) Salaries and wages, rent, interest, and profits. C) Total national income, sales taxes, depreciation, and net foreign factor income. D) Government purchases, corporate investment, exports, imports. Show Answer Correct Answer: A) Consumption, investment, government purchases, and the current account balance. 5. Which of the following must be added to obtain the personal income given the nationalincome? A) Transfer payment. B) Income tax. C) Corporate profit. D) Indirect tax. Show Answer Correct Answer: A) Transfer payment. 6. In the example given, what is the total value of production in the economy? A) Rs 100. B) Rs 150. C) Rs 200. D) Rs 250. Show Answer Correct Answer: C) Rs 200. 7. The economist who popularized the terms 'micro' and 'macro': A) Samuelsson. B) Benham. C) Keynes. D) Ragnar Frisch. Show Answer Correct Answer: D) Ragnar Frisch. 8. Which of the following is a flow? A) Deposits in a bank. B) Capital. C) Depreciation. D) Wealth. Show Answer Correct Answer: C) Depreciation. 9. Ireland's remarkable spurt of GDP growth between 2014 and 2015 was A) In large part an accounting phenomenon reflecting tax avoidance by large multinationals from other countries. B) Because of a sudden upsurge in Ireland's available supplies of factories, land, and labor. C) Due to massive increase in factors of production. D) Thanks to innovation and job creation. Show Answer Correct Answer: A) In large part an accounting phenomenon reflecting tax avoidance by large multinationals from other countries. 10. Which of the following is included in real flow? A) Flow of Goods. B) Flow of Services. C) Both (a) and (b). D) None of these. Show Answer Correct Answer: C) Both (a) and (b). 11. Which of the following is not in intermediate goods for a farmer? A) Seeds. B) Fertilizers. C) Tractor. D) All of these. Show Answer Correct Answer: C) Tractor. 12. Personal income is the real income earned by a household after they have paid their personal income tax. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 13. If a country experiences an increase in personal income taxes, how would it affect the income approach calculation of national income? A) Decrease in national income. B) Increase in national income. C) No change in national income. D) Decrease in GDP. Show Answer Correct Answer: A) Decrease in national income. 14. Government spending is included in which approach to National Income Accounting? A) Income Approach. B) Expenditure Approach. C) Industrial Origin Approach. D) Factor Approach. Show Answer Correct Answer: B) Expenditure Approach. 15. All producer Goods are not Capital Goods. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 16. The CA is equal to A) Y-(C-I + G). B) Y + (C + I + G). C) Y-(C + I + G). D) Y-(C + I-G). E) None of the above. Show Answer Correct Answer: A) Y-(C-I + G). 17. The value of national output produced by residents of a country, whether located at home or overseas, after depreciation and excluding the influence of taxes and subsidies, is known as: A) NNP at factor cost. B) NNP at market price. C) NDP at factor cost. D) NDP at market price. Show Answer Correct Answer: A) NNP at factor cost. 18. It is not an example of transfer payment A) Government provides students allowance. B) Government provide pension to age above 60. C) Government provide unemployment benefits. D) Government provide street lightning. Show Answer Correct Answer: D) Government provide street lightning. 19. Factor income refers to A) Income earned through productive activities. B) Income earned through illegal activities. C) Income earned as a gift from a friend. D) All of these. Show Answer Correct Answer: A) Income earned through productive activities. 20. What does GDP stand for? A) Gross Domestic Product. B) Gross Domestic Profit. C) Gross Development Product. D) Gross Domestic Performance. Show Answer Correct Answer: A) Gross Domestic Product. 21. Value of final goods and services estimated at prevailing market price is known as A) Real national income. B) Money national income. C) Net national income. D) Net value added. Show Answer Correct Answer: B) Money national income. 22. Apakah kaedah yang digunakan untuk mengira sumbangan pelbagai sektor kepada KDNK? A) Kaedah pengeluaran. B) Kaedah perbelanjaan. C) Kaedah output. D) Kaedah pendapatan. Show Answer Correct Answer: D) Kaedah pendapatan. 23. The total value of products & services produced within the territorial boundary of a country A) GDP. B) GNP. C) National Income. D) Net Export. Show Answer Correct Answer: A) GDP. 24. In 1929, government purchases accounted for A) Only 18.5 percent of U.S. GNP. B) Only 8.5 percent of U.S. GNP. C) 28.5 percent of U.S. GNP. D) 38.5 percent of U.S. GNP. E) 48.5 percent of U.S. GNP. Show Answer Correct Answer: B) Only 8.5 percent of U.S. GNP. 25. Compare and contrast GNP and GDP as measures of a country's economic performance. A) GNP includes income earned abroad; GDP does not. B) GDP includes income earned abroad; GNP does not. C) GNP includes government spending; GDP does not. D) GDP includes net exports; GNP does not. Show Answer Correct Answer: A) GNP includes income earned abroad; GDP does not. ← 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 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