CHAPTER 2 : National Income and Related Aggregates NCERT MCQ CLASS 12TH Macro Economics Class | EDUGROWN

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)