Table of Contents
NCERT MCQ ON National Income and Related Aggregates:
Question1 : Those goods which satisfy human wants directly are called
- a) Intermediate goods
- b) Consumer goods
- c) Capital goods
- d) None of these
Answer : Consumer goods
Question 2: In the production of sugar, sugarcane is
- a) A final good
- b) A capital good
- c) An Intermediate good
- d) None of these
Answer : An Intermediate good
Question3 : Which of the following is a semi-durable goods?
- a) Radio
- b) Clothes
- c) Milk
- d) Petrol
Answer : Clothes
Question4 : Capital goods are those goods
- a) Which are used in the production process for several years
- b) Which are used in the production process for few years
- c) Which Involve depreciation losses
- d) Both (a) and (c)
Answer : Both (a) and (c)
Question5 : Increase in the stock of capital is known as
- a) Capital loss
- b) Capital gain
- c) Capital formation
- d) None of these
Answer : Capital formation
Question 6: Net investment is equal to
- a) Gross investment + depreciation
- b) Gross investment – depreciation
- c) Gross investment ×depreciation
- d) Gross investment ÷ depreciation
Answer : Gross investment – depreciation
Question7 : Net capital formation causes
- a) Increase in production capacity
- b) Increase in depreciation
- c) Increase in profits
- d) Increase in cost
Answer : Increase in production capacity
Question 8: Which of the following leads to depreciation?
- a) Normal wear and tear
- b) Damages due to floods
- c) Damages due to market – crash
- d) None of these
Answer : Normal wear and tear
Question9 : Which of the following leads to unexpected obsolescence?
- a) Change in demand
- b) Natural calamities
- c) Change in technology
- d) None of these
Answer : Natural calamities
Question10 : Income of the family is the example of which variable?
- a) Stock
- b) Flow
- c) Both stock and flow
- d) Neither stock nor flow
Answer : Flow
Question11 : A quantity measured per unit of time period is known as
- a) Stock variable
- b) Flow variable
- c) Inventory
- d) None of these
Answer : Flow variable
Question12 : Which of the following is a flow variable
- a) Consumption
- b) Wealth
- c) Quantity of money
- d) None of these
Answer : Consumption
Question13 : Domestic product is equal to:
- a) National product + net factor income from abroad
- b) National product – net factor income from abroad
- c) National product ÷ net factor income from abroad
- d) National product × net factor income from abroad
Answer : National product – net factor income from abroad
Question 14: Which of the following is not correct?
- a) NNP at Market Price = GNP at Market Price + Depreciation
- b) NDP at Market Price = NNP at Market Price – Net Factor Income from Abroad
- c) NDP at Factor Cost = NDP at Market Price – Indirect taxes + Subsidies
- d) GDP at Factor Cost = NDP at Factor Cost + Depreciation
Answer : NNP at Market Price = GNP at Market Price + Depreciation
Question 15: Which one is correct?
- a) National Income = NDP at Factor Cost – Net Factor Income from Abroad
- b) GNP at Factor Cost = GNP at Market Price + Net Indirect Tax
- c) Personal Income = Private Income – Corporate Tax – Corporate Saving
- d) Disposable Income = Saving of Household Sector – Consumption of Household Sector
Answer : Personal Income = Private Income – Corporate Tax – Corporate Saving
Question16 : Basis of the difference between the concepts of market Price and Factor Cost is:
- a) Direct taxes
- b) Indirect taxes
- c) Subsidies
- d) Net indirect taxes
Answer : Net indirect taxes
Question17 : Which one refers to Net Indirect Taxes?
- a) Indirect taxes + subsidies
- b) Indirect taxes – subsidies
- c) Direct taxes – subsidies
- d) None of the above
Answer : Indirect taxes – subsidies
Question 18: Which one leads to Factor Cost ?
- a) Marker Price – indirect Taxes
- b) Marker Price – Net Indirect Taxes
- c) Marker Price + Indirect Taxes
- d) Marker Price + Net Indirect Taxes
Answer : Marker Price – Net Indirect Taxes
Question19 : Which one includes depreciation?
- a) GNP at Market Price
- b) NNP at Market Price
- c) NNP at Factor Cost
- d) None of these
Answer : GNP at Market Price
Question 20: Market price of the final goods and services (Including depreciation) produced within the domestic territory of a country during an accounting year is called:
- a) GDP at Market Price
- b) GNP at Factor Cost
- c) NNP at Factor cost
- d) GDP at Factor Cost
Answer : GDP at Market Price
Question 21: GNP at market price is measured as:
- a) GDP at market price – Depreciation
- b) GDP at market price + Net factor Income from abroad
- c) GNP at market price + subsidies
- d) NDP at factor cost + Net factor income from abroad
Answer : GDP at market price + Net factor Income from abroad
Question22 : Value added method measured the contribution of which of the following within the domestic territory of a country?
- a) One producing enterprise only
- b) All producing enterprises
- c) A few producing enterprises
- d) None of these
Answer : All producing enterprises
Question 23: Which of the following is not included in final consumption expenditure?
- a) Household expenditure on food
- b) Government final consumption expenditure
- c) Household expenditure on education
- d) Expenditure on raw material
Answer : Expenditure on raw material
Question 24: As a result of double counting, national incomes is:
- a) Over- estimated
- b) Under- estimated
- c) Correctly – estimated
- d) Not estimated for the entire year of accounting
Answer : Over- estimated
Question25 : Which of these is a limitation in the measurement of social welfare using GDP at constant prices as an index?
- a) Increase in population size
- b) Change in working conditions
- c) Composition of production
- d) All of these
Answer : All of these
Question 26: Which of the following is not transfer payment?
- a) Interest on national debt
- b) Retirement pensions
- c) Old- age pensions
- d) Donations
Answer : Retirement pensions
Question27 : Which of the following items is not included while estimating GNP of a country at market prices?
- a) Salaries and wages before taxes
- b) Indirect taxes
- c) Remittances by NRIs
- d) Subsidy
Answer : Remittances by NRIs
Question28 : Which of the following items is not included while estimating national Income by Income method?
- a) Rent
- b) Mixed income
- c) Fixed investment
- d) Undistributed profits
Answer : Fixed investment
Question29 : Real national income means:
- a) National income at current prices
- b) National income at factor prices
- c) National income at constant prices
- d) National income at average prices of the past 10 years
Answer : National income at constant prices
Question30 : In India, suppliers of money are:
- a) Government of the country
- b) Banking system of the country
- c) Both (a) and (b)
- d) None of these
Answer : Both (a) and (b)
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