Question 1

Personal income includes:

Accepted Answer

A)  Direct taxes
B)  Indirect taxes
C)  Depreciation
D)  None of these A

Question 2

Which statement is true?

Accepted Answer

A)  National Income = National expenditure - indirect taxes
B)  NI = GNP - NNP
C)  NI = NNP - indirect taxes (because, from NNP if we minus the indirect taxes it will give us NNP@FC which is equal to NI) 
D)  NI = PI C

Question 3

Which is the largest figure:

Accepted Answer

A)  NNP
B)  GNP
C)  PI (Disposable Personal Income) 
D)  PI (personal income)  B

Question 4

Which sector contributes the most to India's economy in terms of GDP?

Accepted Answer

A)  Service sector
B)  Manufacturing sector
C)  Agricultural sector
D)  Small scale industries

Question 5

To avoid double counting when GDP is estimated, economists:

Accepted Answer

A)  Use GDP deflator
B)  Calculate value added at each stage of production
C)  Use retail prices
D)  Use price of only intermediate goods

Question 6

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

Accepted Answer

A)  I only
B)  ii only
C)  both
D)  none

Question 7

If the contribution of the agricultural sector is decreasing in a country's economy, then what conclusion can be drawn?

Accepted Answer

A)  The country is growing in the direction of being a developed nation
B)  The country is moving towards becoming developing nation
C)  The country is moving towards becoming less developed nation
D)  The economic growth rate of the country has stopped

Question 8

Which Ministry is responsible for calculating GDP in India?

Accepted Answer

A)  Ministry of Finance
B)  Ministry of Commerce and Industry
C)  Ministry of Central Statistical and Program Implementation
D)  Ministry of consumer Affairs

Question 9

Personal income includes:

Accepted Answer

A)  Transfer payments
B)  Indirect taxes
C)  Depreciation
D)  All of the above

Question 10

Which is a flow concept:

Accepted Answer

A)  Number of my shirts
B)  My total wealth
C)  My monthly income
D)  Money supply

Question 11

Which of the following is considered as financial year in India?

Accepted Answer

A)  April 1 to March 31
B)  January 1 to December 31
C)  March 1 to April 30
D)  March 16 to March 15

Question 12

Which sector contributes the most to India's economy?

Accepted Answer

A)  Service sector
B)  Manufacturing sector
C)  Agricultural sector
D)  Small scale industries

Question 13

If we compare GDP and GNP, then:

Accepted Answer

A)  GNP = GDP - net income from abroad
B)  GNP = GDP + net income from abroad (R-P) ……. GDP+(R-P) 
C)  GNP = NNP - net income from abroad
D)  GNP = NNP + net income from abroad

Question 14

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

Question 15

Select the correct statement:

Accepted Answer

A)  Transfer payment are included in national income
B)  Depreciation allowance is a part of GNP
C)  Taxes are not included in NNP
D)  GDP means Gross Direct Production

Question 16

Output means. ……………unless stated otherwise

Accepted Answer

A)  Gross output at MP (GDPmp) 
B)  Net output at MP
C)  Gross output at FC
D)  None

Question 17

Which statement is true?

Accepted Answer

A)  National Expenditure = National income
B)  National Expenditure = National income + National savings
C)  National Expenditure = National income + Taxes
D)  National Expenditure = National income - Taxes

Question 18

An Indian farmer produces wheat without incurring cost of inputs all 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

Question 19

If savings exceed investment then:

Accepted Answer

A)  National income rises
B)  National income falls
C)  National income is not affected
D)  None of the above

Question 20

How much does the primary sector contribute to India's GDP?

Accepted Answer

A)  26%
B)  20%
C)  53%
D)  14%

Exam 2: Understanding National Income, GDP, and Economic Sectors in India

Personal income includes:

Which statement is true?

Which is the largest figure:

Which sector contributes the most to India's economy in terms of GDP?

To avoid double counting when GDP is estimated, economists:

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

If the contribution of the agricultural sector is decreasing in a country's economy, then what conclusion can be drawn?

Which Ministry is responsible for calculating GDP in India?

Personal income includes:

Which is a flow concept:

Which of the following is considered as financial year in India?

Which sector contributes the most to India's economy?

If we compare GDP and GNP, then:

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

Select the correct statement:

Output means. ……………unless stated otherwise

Which statement is true?

An Indian farmer produces wheat without incurring cost of inputs all 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 savings exceed investment then:

How much does the primary sector contribute to India's GDP?