Question 1

In GNP calculation which of the following should be excluded?

Accepted Answer

A) rental incomes 
B) interest payments 
C) dividends 
D) government transfer payment 
A) rental incomes 
B) interest payments 
C) dividends 
D) government transfer payment D

Question 2

Piyush's mother is a teacher. She also teaches Piyush. How would you treat this white calculating national income and domestic income ?

Accepted Answer

A) it will be included in the national income, but not in the domestic income. 
B) it will be included in the domestic income, but not in the national income. 
C) it will be included in domestic income as well as national income. 
D) it will neither be included in the domestic income nor in the national income. 
A) it will be included in the national income, but not in the domestic income. 
B) it will be included in the domestic income, but not in the national income. 
C) it will be included in domestic income as well as national income. 
D) it will neither be included in the domestic income nor in the national income. D

Question 3

If factor cost is greater than marker price, it means that

Accepted Answer

A) indirect taxes  indirect taxes) 
B) indirect taxes > subsidies 
C) i.t = subsidies 
D) none 
A) indirect taxes  indirect taxes) 
B) indirect taxes > subsidies 
C) i.t = subsidies 
D) none A

Question 4

Which of following is not a final good?

Accepted Answer

A) machinery purchased by dealer 
B) machinery purchased by a factory 
C) use of petrol 
D) washing machine 
A) machinery purchased by dealer 
B) machinery purchased by a factory 
C) use of petrol 
D) washing machine

Question 5

In classical theory of employment, there is the possibility of:

Accepted Answer

A) voluntary unemployment 
B) no unemployment 
C) involuntary unemployment 
D) disguised unemployment 
A) voluntary unemployment 
B) no unemployment 
C) involuntary unemployment 
D) disguised unemployment

Question 6

Net national product at factor cost is also known as:

Accepted Answer

A) net domestic product 
B) gross national product 
C) national income 
D) personal income 
A) net domestic product 
B) gross national product 
C) national income 
D) personal income

Question 7

Which of the following is a synonym of "Undistributed Profits"?

Accepted Answer

A) savings of private corporate sector 
B) reserves and surplus 
C) retained earnings 
D) all of these 
A) savings of private corporate sector 
B) reserves and surplus 
C) retained earnings 
D) all of these

Question 8

Following is an example of final good:

Accepted Answer

A) flour used by a banker in making biscuits 
B) unsold stock of goods lying with the sellers 
C) tyres purchased by a transport company 
D) mobile sets purchased by a mobile dealer 
A) flour used by a banker in making biscuits 
B) unsold stock of goods lying with the sellers 
C) tyres purchased by a transport company 
D) mobile sets purchased by a mobile dealer

Question 9

Which of the following is not true about final goods ?

Accepted Answer

A) final gods satisfy wants of ultimate consumers and producers. 
B) final goods have direct demand as they satisfy the wants directly. 
C) final goods are subject to further transformation in the process of production. 
D) final goods are neither used up as raw-material nor for resale in the same year. 
A) final gods satisfy wants of ultimate consumers and producers. 
B) final goods have direct demand as they satisfy the wants directly. 
C) final goods are subject to further transformation in the process of production. 
D) final goods are neither used up as raw-material nor for resale in the same year.

Question 10

Excess demand for money, according to Say's law in the Economy:

Accepted Answer

A) is greater 
B) is very less 
C) is equal to zero 
D) there is no relationship between excess demand for money and say's law 
A) is greater 
B) is very less 
C) is equal to zero 
D) there is no relationship between excess demand for money and say's law

Question 11

Which of the following is not an assumption of classical theory?

Accepted Answer

A) price flexibility 
B) unemployment 
C) say's law 
D) neutrality of money 
A) price flexibility 
B) unemployment 
C) say's law 
D) neutrality of money

Question 12

Which of following is not a part of national income?

Accepted Answer

A) depreciation 
B) net factor income from abroad 
C) operating surplus 
D) mixed income 
A) depreciation 
B) net factor income from abroad 
C) operating surplus 
D) mixed income

Question 13

Product method of calculating national income is also known as:

Accepted Answer

A) income method 
B) value added method 
C) expenditure method 
D) distribution method 
A) income method 
B) value added method 
C) expenditure method 
D) distribution method

Question 14

National Income differs from Net National Product at market price by the amount of:

Accepted Answer

A) current transfers from rest of the world 
B) net indirect taxes 
C) national debt interest 
D) it does not differ 
A) current transfers from rest of the world 
B) net indirect taxes 
C) national debt interest 
D) it does not differ

Question 15

Depreciation is the:

Accepted Answer

A) loss of vale of fixed assets in use due to normal wear and tear 
B) loss of value of fixed assets in use due to normal rate of accidental damages 
C) loss of value of fixed assets in the due to foreseen obsolescence 
D) all of these 
A) loss of vale of fixed assets in use due to normal wear and tear 
B) loss of value of fixed assets in use due to normal rate of accidental damages 
C) loss of value of fixed assets in the due to foreseen obsolescence 
D) all of these

Question 16

Transfer payments refer to payments, which are made:

Accepted Answer

A) without any exchange of goods and services 
B) to workers on transfer from one job to another 
C) as compensation to employees 
D) none 
A) without any exchange of goods and services 
B) to workers on transfer from one job to another 
C) as compensation to employees 
D) none

Question 17

Goods which are not used in the production of other goods are called:

Accepted Answer

A) capital goods 
B) consumption goods 
C) producer goods 
D) intermediate goods 
A) capital goods 
B) consumption goods 
C) producer goods 
D) intermediate goods

Question 18

Which of the following is not a component of domestic income?

Accepted Answer

A) operating surplus 
B) compensation of employees 
C) net factor income from abroad 
D) mixed income 
A) operating surplus 
B) compensation of employees 
C) net factor income from abroad 
D) mixed income

Question 19

The normal condition of a capitalist economy in classical theory is:

Accepted Answer

A) underemployment 
B) full employment 
C) general unemployment 
D) frictional unemployment 
A) underemployment 
B) full employment 
C) general unemployment 
D) frictional unemployment

Question 20

Which of following is not an intermediate goods?

Accepted Answer

A) wheat 
B) gold 
C) service of doctor 
D) sand and bricks 
A) wheat 
B) gold 
C) service of doctor 
D) sand and bricks

In GNP calculation which of the following should be excluded?

Piyush's mother is a teacher. She also teaches Piyush. How would you treat this white calculating national income and domestic income ?

If factor cost is greater than marker price, it means that

Which of following is not a final good?

In classical theory of employment, there is the possibility of:

Net national product at factor cost is also known as:

Which of the following is a synonym of "Undistributed Profits"?

Following is an example of final good:

Which of the following is not true about final goods ?

Excess demand for money, according to Say's law in the Economy:

Which of the following is not an assumption of classical theory?

Which of following is not a part of national income?

Product method of calculating national income is also known as:

National Income differs from Net National Product at market price by the amount of:

Depreciation is the:

Transfer payments refer to payments, which are made:

Goods which are not used in the production of other goods are called:

Which of the following is not a component of domestic income?

The normal condition of a capitalist economy in classical theory is:

Which of following is not an intermediate goods?

Key Concepts in Macroeconomics and Economic History

National Income and GDP Calculation in India

Economic Concepts and Policies

Understanding Inflation, Business Cycles, and Monetary Policy

International Trade Theories and Concepts

Understanding Terms of Trade and International Trade Policies

International Trade Policies and Organizations

International Trade and Economic Policies

Balance of Payment and International Trade

International Trade and Finance

Understanding Foreign Exchange Market and Exchange Rate Systems: Part 1

Understanding Foreign Exchange Market and Exchange Rate Systems: Part 2

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Exam 3: National Income and Classical Theory of Employment

In GNP calculation which of the following should be excluded?

Piyush's mother is a teacher. She also teaches Piyush. How would you treat this white calculating national income and domestic income ?

If factor cost is greater than marker price, it means that

Which of following is not a final good?

In classical theory of employment, there is the possibility of:

Net national product at factor cost is also known as:

Which of the following is a synonym of "Undistributed Profits"?

Following is an example of final good:

Which of the following is not true about final goods ?

Excess demand for money, according to Say's law in the Economy:

Which of the following is not an assumption of classical theory?

Which of following is not a part of national income?

Product method of calculating national income is also known as:

National Income differs from Net National Product at market price by the amount of:

Depreciation is the:

Transfer payments refer to payments, which are made:

Goods which are not used in the production of other goods are called:

Which of the following is not a component of domestic income?

The normal condition of a capitalist economy in classical theory is:

Which of following is not an intermediate goods?

Key Concepts in Macroeconomics and Economic History

National Income and GDP Calculation in India

Economic Concepts and Policies

Understanding Inflation, Business Cycles, and Monetary Policy

International Trade Theories and Concepts

Understanding Terms of Trade and International Trade Policies

International Trade Policies and Organizations

International Trade and Economic Policies

Balance of Payment and International Trade

International Trade and Finance

Understanding Foreign Exchange Market and Exchange Rate Systems: Part 1

Understanding Foreign Exchange Market and Exchange Rate Systems: Part 2

Filters