This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 9 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. National income figures which has been adjusted by adding in the value of subsidies and deducting the amount of indirect taxes. (+) subsidies, (-) tax A) At market prices. B) At factor prices. C) At constant prices. D) At current prices. Show Answer Correct Answer: B) At factor prices. 2. The most important problem in Estimating GNP is: A) Unorganised market. B) Smuggling. C) Black marketing. D) Double counting. Show Answer Correct Answer: A) Unorganised market. 3. The study of national income accounting has become very important in recent years for the following reasons EXCEPT: A) Standard of living comparison. B) Economic performance over time. C) National planning. D) Races contribution. Show Answer Correct Answer: D) Races contribution. 4. Calculate the net value added at the market price of a firm:Sale 400Change in stock ..... 20Depreciation 30Net indirect taxes 40Purchase of machinery 200Purchase of intermediate product 250 A) 120. B) 110. C) 115. D) 95. Show Answer Correct Answer: B) 110. 5. Which one of the following statements is the MOST accurate? A) GNP plus depreciation is called net national product (NNP). B) GNP less depreciation is called net national product (NNP). C) GNP less depreciation is called net factor product (NFP). D) GDP plus depreciation is called net national product (NNP). E) GDP less depreciation is called net national product (NNP). Show Answer Correct Answer: B) GNP less depreciation is called net national product (NNP). 6. Which of the following is FALSE about private savings and government savings? A) S P = Y-T-C. B) Unlike private saving decisions, government saving decisions are often made with an eye toward their effect on output and employment. C) The national income identity can help us to analyze the channels through which government saving decisions influence macroeconomic conditions. D) None of the above; all statements are true. Show Answer Correct Answer: D) None of the above; all statements are true. 7. Calculate National Income by Income method from the given data:Items-Rs (in crores)1. Compensation of employees-13, 3002. Wages in kind-2003. Indirect taxes-38004. Gross fixed capital formation-62005. Operating surplus-50006. Mixed income of self-employed-16, 1007. NFIA-3008. Net exports-(-)100 A) Rs. 34, 900 cr. B) Rs. 34, 700 cr. C) Rs. 34, 800 cr. D) Rs. 34, 600 cr. Show Answer Correct Answer: B) Rs. 34, 700 cr. 8. The sector processing factors of production to end goods and services A) Agriculture. B) Industry. C) Service. D) Informal. Show Answer Correct Answer: B) Industry. 9. Indirect taxes include A) Expenditure taxes. B) Sales taxes. C) Excise taxes. D) All of the above. Show Answer Correct Answer: D) All of the above. 10. ..... is the total payment received by the factors of productionin a country during the year. A) National income. B) National flow. C) National economics. D) National aggregate. Show Answer Correct Answer: A) National income. 11. Which of the following is excluded from GDP calculation? A) Government expenditure. B) Net exports. C) Household consumption. D) Illegal or black-market transactions. Show Answer Correct Answer: D) Illegal or black-market transactions. 12. Consider the following statements and identify the right ones.i. National income is the monetary value of all final goods and services produced.ii. Depreciation is deducted from gross value to get the net value A) I Only. B) II Only. C) Both. D) None. Show Answer Correct Answer: C) Both. 13. The depreciation value in national income accounting is sometimes referred to as ..... A) Net investment. B) Net national product. C) Change in business inventories. D) The capital consumption allowance. Show Answer Correct Answer: D) The capital consumption allowance. 14. The formula for Net Factor Income from abroad is Factor income received-Factor income paid A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 15. Which of the following is a problem related to measuring national income? A) Double counting. B) High literacy rate. C) Increase in exports. D) Government subsidies. Show Answer Correct Answer: A) Double counting. 16. Equilibrium price is also known as A) Cost price. B) Factor price. C) Factor market. D) Market price. Show Answer Correct Answer: D) Market price. 17. The current price in the market through the forces of demand and supply. A) Factor Cost. B) Market Price. C) Net National Product. D) Gross National Product. Show Answer Correct Answer: B) Market Price. 18. GDP at FC = A) GDP at MP-Net indirect taxes. B) GDP at MP + Net indirect taxes. C) GDP at MP + Subsidies. D) GDP at MP-Indirect taxes. Show Answer Correct Answer: A) GDP at MP-Net indirect taxes. 19. In 2019, the United States had A) A surplus in the current account. B) A balance in the current account. C) A deficit in the current account. D) A positive balance of net financial flows. Show Answer Correct Answer: C) A deficit in the current account. 20. Analyzing the industrial origin approach, if the service sector contributes the most to GDP, what can be inferred? A) Services have a higher value-added compared to other sectors. B) Manufacturing is the largest sector in the economy. C) Agriculture has the highest production output. D) The economy is export-driven. Show Answer Correct Answer: A) Services have a higher value-added compared to other sectors. 21. Apakah hubungan antara KNK dan KDNK jika PFbLN adalah positif? A) KNK > KDNK. B) KNK < KDNK. C) KNK = KDNK. D) Tidak dapat ditentukan. Show Answer Correct Answer: A) KNK > KDNK. 22. What would be an example of a policy measure aimed at increasing national income through the income approach? A) Implementing tax incentives for businesses. B) Increasing government spending on defense. C) Decreasing interest rates by the central bank. D) Encouraging household savings through subsidies. Show Answer Correct Answer: A) Implementing tax incentives for businesses. 23. What is the difference between GNP and GDP? A) GNP includes net exports, while GDP doesn't. B) GDP includes net exports, while GNP doesn't. C) GNP includes income earned abroad, while GDP doesn't. D) GDP includes income earned abroad, while GNP doesn't. Show Answer Correct Answer: C) GNP includes income earned abroad, while GDP doesn't. 24. Which of the following best describes GDP at market prices? A) GDP at factor cost + Indirect taxes-Subsidies. B) GDP at factor cost-Indirect taxes + Subsidies. C) National income + Net factor income from abroad. D) Domestic factor income + Personal taxes. Show Answer Correct Answer: A) GDP at factor cost + Indirect taxes-Subsidies. 25. The position of the United States current account balance in 2007 was A) Lent over 6 percent of its GNP, resulting in a large current account surplus. B) Borrowed over 6 percent of its GNP, leading to a large current account deficit. C) Achieved a currant account balance of zero. D) Borrowed over 10 percent of its GNP, leading to a large current account deficit. E) None of the above. Show Answer Correct Answer: B) Borrowed over 6 percent of its GNP, leading to a large current account deficit. ← 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 8Class 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