This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 8 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. GDP is different than GNP in that A) It accounts for net unilateral transfers. B) It does not account for indirect business taxes. C) It does not account for a country's production using services with foreign-owned capital. D) It accounts for depreciation. E) None of the above. Show Answer Correct Answer: C) It does not account for a country's production using services with foreign-owned capital. 2. The value of national income adjusted for inflation is called A) Per capita income. B) Disposable income. C) Inflation rate. D) Real national income. Show Answer Correct Answer: D) Real national income. 3. The national income estimation is the responsibility of A) Finance Ministry. B) Central Statistical Organisation. C) NSSO. D) National Income Committee. Show Answer Correct Answer: B) Central Statistical Organisation. 4. Of the following, which is included in the calculation of national income? A) Prize money of RM10 000 awarded as sales incentive. B) Interest paid to the holder of a government guarantee letter. C) The value of accommodation paid by an employer as part of anemployee's wages. D) Increased value of a house due to inflation. Show Answer Correct Answer: C) The value of accommodation paid by an employer as part of anemployee's wages. 5. GNP at MP = ..... A) GDP at Market Price-Depreciation. B) GDP at MP + Depreciation. C) GDP at MP + Net factor income from abroad. D) None. Show Answer Correct Answer: A) GDP at Market Price-Depreciation. 6. What is National Income Accounting? A) A method of preparing and presenting national income accounts based on the principle of double entry system of business accounting. B) A method of calculating personal income for individuals. C) A method of measuring the GDP of a country. D) A method of calculating the profits of a company. Show Answer Correct Answer: A) A method of preparing and presenting national income accounts based on the principle of double entry system of business accounting. 7. Purchase of machine for resale is A) Final Good. B) Intermediate good. C) Sometimes intermediate sometimes final. D) Neither Final nor Intermediate. Show Answer Correct Answer: B) Intermediate good. 8. The purchase of goods and services produced by firms, individuals or households is ..... A) Government spending. B) Personal consumption. C) Investment. D) Net exports. Show Answer Correct Answer: B) Personal consumption. 9. Net national product at market price is equal to net national product at factor cost when ..... A) Depreciation is zero. B) Net factor income from abroad is zero. C) Net exports are zero. D) Indirect taxed less subsidies equal zero. Show Answer Correct Answer: D) Indirect taxed less subsidies equal zero. 10. What is the purpose of the income method of measuring national income? A) To measure incomes generated by production. B) To estimate exports and imports. C) To analyze stock market trends. D) To calculate government expenditure. Show Answer Correct Answer: A) To measure incomes generated by production. 11. National income measured at current prices. A) Nominal National Income. B) Real National Income. C) Net National product. D) Personal Income. Show Answer Correct Answer: A) Nominal National Income. 12. "The total final value of goods and services provided by factors of production owned by citizens of the nation, regardless of where they are located, within one year" A) National Income (NI). B) Net national product (NNP). C) Gross domestic product (GDP). D) Gross national product (GNP). Show Answer Correct Answer: D) Gross national product (GNP). 13. Unilateral transfers between countries are A) Long-term loans. B) Part of national income, but not part of the current account. C) Part of the current account, but not a part of national income. D) Known for reducing the income of capital owners. E) International gifts or payments that do not correspond to the purchase of any good, service, or asset. Show Answer Correct Answer: E) International gifts or payments that do not correspond to the purchase of any good, service, or asset. 14. Gross National Income includes all of the income earned by a country's residents and businesses including those earned abroad. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 15. The income approach is also known as the ..... approach. A) Factor Income. B) Expenditure. C) Industrial Origin. D) Profit. Show Answer Correct Answer: A) Factor Income. 16. Which of the following is adjusted for inflation to provide a more accurate reflection of an economy's size? A) Gross National Product. B) Nominal GDP. C) Real GDP. D) Net National Product. Show Answer Correct Answer: C) Real GDP. 17. What is Nominal GNP? A) GNP at constant prices. B) GNP less Net factor income from abroad. C) GNP at current prices. D) Real GNP. Show Answer Correct Answer: C) GNP at current prices. 18. Total market value of all final goods and services produced WITHIN a country in a given time period. A) Gross National Product. B) Gross Domestic Product. C) Gross Personal Product. D) Net National Product. Show Answer Correct Answer: B) Gross Domestic Product. 19. A firm's value added is equal to: A) Sales. B) Profit. C) Sales+Change in stock-Intermediate consumption. D) Sales + Intermediate consumption. Show Answer Correct Answer: C) Sales+Change in stock-Intermediate consumption. 20. This term refers to the reduction and elimination of poverty, unemployment and inequality with the context of growing economy. A) Economic Growth. B) Economic System. C) Economic Development. D) Economic sustainability. Show Answer Correct Answer: C) Economic Development. 21. Apa yang diwakili oleh Keluaran Negara Kasar (KNK)? A) Nilai perbelanjaan kerajaan dalam satu tahun. B) Nilai barangan dan perkhidmatan akhir yang dihasilkan oleh faktor-faktor pengeluaran yang dimiliki oleh penduduk negara, sama ada di dalam atau di luar negara. C) Nilai simpanan keseluruhan dalam satu tahun. D) Nilai import keseluruhan dalam satu tahun. Show Answer Correct Answer: B) Nilai barangan dan perkhidmatan akhir yang dihasilkan oleh faktor-faktor pengeluaran yang dimiliki oleh penduduk negara, sama ada di dalam atau di luar negara. 22. The value of GDP at the current prevailing price is, A) Real GDP. B) Personal income. C) Private income. D) NDP. Show Answer Correct Answer: A) Real GDP. 23. GNP measures the market value of all final goods and services produced by a country's permanent residents, wherever located, within a year. A) True. B) False. C) Uncertain. D) None of the above. Show Answer Correct Answer: A) True. 24. The total amount of income from economic activities across the country in a year is called ..... A) Disposable income. B) National income. C) Personal income. D) Private Income. Show Answer Correct Answer: B) National income. 25. The usage of national income data is to measure economic growth. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. ← 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 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