Question 1

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 C

Question 2

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 B

Question 3

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 B

Question 4

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 (difference between Indirect tax and subsidy) 
C) National debt interest 
D) it does not differ 
A) Current transfers from rest of the world 
B) Net Indirect Taxes (difference between Indirect tax and subsidy) 
C) National debt interest 
D) it does not differ

Question 5

An Indian farmer produces wheat without incurring cost of inputs alll sells for Rs. 1,000 to a miller who grinds wheat into flour and sells for Rs 1,200 to baker. The baker sells bread to consumers for Rs. 1,600. Total added is Rs.

Accepted Answer

A) 1,600 
B) 2,200 
C) 1,000 
D) 1,400 
A) 1,600 
B) 2,200 
C) 1,000 
D) 1,400

Question 6

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

Question 7

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 8

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

Question 9

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 10

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 11

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 12

Which out of the following is not included in estimation of NI?

Accepted Answer

A) Subsidized Lunch 
B) Old-age Pension 
C) Free Medical facilities 
D) Construction of a house 
A) Subsidized Lunch 
B) Old-age Pension 
C) Free Medical facilities 
D) Construction of a house

Question 13

Which of following is not a capital good?

Accepted Answer

A) Use of Machine tools 
B) Raw Material 
C) Advocate's Services 
D) Heavy Machinery 
A) Use of Machine tools 
B) Raw Material 
C) Advocate's Services 
D) Heavy Machinery

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

A student records her income and spending for past month, she uses the function of money

Accepted Answer

A) Medium of exchange 
B) Standard of deferred payments 
C) Store of value 
D) Unit of account 
A) Medium of exchange 
B) Standard of deferred payments 
C) Store of value 
D) Unit of account

Question 16

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

Question 17

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 18

Subsidy implies Selling the product

Accepted Answer

A) To the government at higher prices 
B) Below the cost of production. 
C) Selling the product at loss. 
D) Selling the product at cost plus indirect taxes. 
A) To the government at higher prices 
B) Below the cost of production. 
C) Selling the product at loss. 
D) Selling the product at cost plus indirect taxes.

Question 19

Which of following is not included in national income?

Accepted Answer

A) Factor income 
B) Rent 
C) Operating surplus 
D) Transfer income 
A) Factor income 
B) Rent 
C) Operating surplus 
D) Transfer income

Question 20

A saving account in a bank represents the function of money:

Accepted Answer

A) A measure of value 
B) A medium of exchange 
C) A standard for deferred payments 
D) Store of value 
A) A measure of value 
B) A medium of exchange 
C) A standard for deferred payments 
D) Store of value

Net national product at factor cost is also known as:

Following is an example of final good:

Product method of calculating national income is also known as:

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

An Indian farmer produces wheat without incurring cost of inputs alll sells for Rs. 1,000 to a miller who grinds wheat into flour and sells for Rs 1,200 to baker. The baker sells bread to consumers for Rs. 1,600. Total added is Rs.

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

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

Which of following is not an intermediate goods?

Which of following is not a part of national income?

Which of the following is not true about final goods?

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

Which out of the following is not included in estimation of NI?

Which of following is not a capital good?

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

A student records her income and spending for past month, she uses the function of money

In GNP calculation which of the following should be excluded?

Depreciation is the:

Subsidy implies Selling the product

Which of following is not included in national income?

A saving account in a bank represents the function of money:

Economics : Macroeconomics, Factors, Goods, and Indicators

Understanding National Income, GDP, and Economic Sectors in India

Money and Monetary Policy: Understanding the Characteristics and Functions of Currency and Government Securities

Money and Inflation

Macroeconomic Concepts and Theories

Economics and Public Finance

Understanding Public Finance and Business Cycles

Filters

Exam 3: National Income and Final Goods

Net national product at factor cost is also known as:

Following is an example of final good:

Product method of calculating national income is also known as:

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

An Indian farmer produces wheat without incurring cost of inputs alll sells for Rs. 1,000 to a miller who grinds wheat into flour and sells for Rs 1,200 to baker. The baker sells bread to consumers for Rs. 1,600. Total added is Rs.

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

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

Which of following is not an intermediate goods?

Which of following is not a part of national income?

Which of the following is not true about final goods?

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

Which out of the following is not included in estimation of NI?

Which of following is not a capital good?

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

A student records her income and spending for past month, she uses the function of money

In GNP calculation which of the following should be excluded?

Depreciation is the:

Subsidy implies Selling the product

Which of following is not included in national income?

A saving account in a bank represents the function of money:

Economics : Macroeconomics, Factors, Goods, and Indicators

Understanding National Income, GDP, and Economic Sectors in India

Money and Monetary Policy: Understanding the Characteristics and Functions of Currency and Government Securities

Money and Inflation

Macroeconomic Concepts and Theories

Economics and Public Finance

Understanding Public Finance and Business Cycles

Filters