Chapter 6 Determination of National Income Quiz CA Foundation Chapter 6 Determination of National Income Quiz 1 1 / 20 Which of the following is a method to measure the National Income? Expenditure method Income method Product method All of the above 2 / 20 Which of the following is the correct term for calculating National Income at the market prices? Money income Non-monetary income Real income None of the above 3 / 20 The difference between the National Income and the Net National Product at market price is known as _______. National debt transfer Current transfers from the rest of the world Net indirect taxes All of the above 4 / 20 Which of the following is the actual definition of transfer payments? Transfer payments refer to the payments made as compensation to the employees within an organisation Transfer payments refer to the payments made to workers on transferring from one job to another Transfer payments refer to the payments made without any exchange of goods and services None of the above 5 / 20 Which of the following is the employment theory related to? Macroeconomics Static economics Microeconomics None of the above 6 / 20 Which of the following items are not included while measuring the Gross National Product? Illegal and leisure activities Purely financial transactions Transferring of used goods and non-market goods and services All of the above 7 / 20 Which of the following is the correct term for calculating National Income at constant prices? Current income Domestic income Real income None of the above 8 / 20 Which of the following is the correct definition for the Gross Domestic Product (GDP) of a country? The Gross Domestic Product is the total monetary value of the economic transactions within a country in a given year The Gross Domestic Product is the total value of both monetary and non-monetary goods and services in a country within a given year The Gross Domestic Product is the total value of tradable goods produced in a country within a given year None of the above 9 / 20 Which of the following organisations calculate the Gross Domestic Product in India? Reserve Bank of India Indian Statistical Institute National Statistical Office None of the above 10 / 20 Which of the following is true for Disposable Income? Disposable Income is the difference between Private Income and Indirect Taxes Disposable Income is the difference between Personal Income and Indirect Taxes Disposable Income is the difference between Private Income and Direct Taxes Disposable Income is the difference between Personal Income and Direct Taxes 11 / 20 Which of the following is another term for the Net National Product at factor cost? Personal Income National Income Gross National Product Net Domestic Product 12 / 20 Which of the following is not a part of the National Income? Undistributed profits Income from government expenditure The interest amount on the unproductive national debt The payments made by a household to a firm for purchasing goods and services 13 / 20 Which of the following is true for Inflation? The value of money increases during Inflation The value of money decreases during Inflation The value of money stays the same during Inflation None of the above 14 / 20 Which of the following is not needed while considering the Gross National Product? The net investment made by foreigners within a given period The total of private investments made within a given period The total purchase of goods made by the government within a given period The total per capita income of the citizens of a country within a given period 15 / 20 Which of the following is the definition of a closed economy? A closed economy is a type of economy where the money supply is totally controlled by the government A closed economy is a type of economy where neither exports nor imports take place A closed economy is a type of economy where deficit financing takes place A closed economy is a type of economy where there are no exports to other countries 16 / 20 Which of the following is true for the National Income of a country? If the savings exceed the investment within a country, the National Income will rise If the savings exceed the investment within a country, the National Income will fall If the savings exceed the investment within a country, the National Income will fluctuate If the savings exceed the investment within a country, the National Income will remain constant 17 / 20 Which of the following is true for Net National Income? The Net National Income is the total of Gross National Product and Depreciation The Net National Income is the difference between Gross National Product and Depreciation The Net National Income is the difference between Gross Domestic Product and Depreciation The Net National Income is the difference between Net Domestic Product and Depreciation 18 / 20 The primary sector within a country for the calculation of National Income includes __________. Small scale industries Retail trading Agriculture All of the above 19 / 20 Which of the following is included in the National Income of a country? Rent Interest Wages Rent, Interest, Wages, Salary, Profits 20 / 20 What is the consumption of Fixed Capital known as? Depreciation Capital Formation Investment All of the above Your score isThe average score is 61% 0% Restart quiz CA Foundation Chapter 6 Determination of National Income Quiz 2 1 / 20 The value of NNP at production point is called NNP at factor cost NNP at market price GNP at market price GNP at factor cost 2 / 20 The average income of a country is called per capita income disposable income inflation rate real national income 3 / 20 Which of the following is considered as financial year in India? April 1 to March 31 January 1 to December 31 March 1 to April 30 March 16 to March 15 4 / 20 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 i only ii only both none 5 / 20 What is the net value of GDP after deducting depreciation from GDP (Gross domestic product)? Net national product Net domestic product Gross national product Disposable income 6 / 20 When depreciation is deducted from GNP, the net value is Net national product (NNP) Net domestic product (NDP) Gross national product (GNP) Disposable income 7 / 20 The value of NNP at consumer point is called the NNP at factor cost NNP at market price GNP at market price GNP at factor cost 8 / 20 If we compare GDP and GNP, then: GNP = GDP – net income from abroad GNP = GDP + net income from abroad (r-p) ……. gdp+(r-p) GNP = NNP – net income from abroad GNP = NNP + net income from abroad 9 / 20 There are methods of measuring national income: 5 2 1 3 10 / 20 Which statement is true? national expenditure = national income national expenditure = national income + national savings national expenditure = national income + taxes national expenditure = national income – taxes 11 / 20 Which sector contributes the most to India’s economy in terms of GDP? service sector manufacturing sector agricultural sector small scale industries 12 / 20 Which is not added in the calculation of national income of India? the value of goods and services the sold value of the old fridge services rendered by the housewives both [b] & [c] 13 / 20 Personal income includes: direct taxes indirect taxes depreciation none of these 14 / 20 To avoid double counting when GDP is estimated, economists: use GDP deflator calculate value added at each stage of production use retail prices use price of only intermediate goods 15 / 20 Which is a flow concept: number of my shirts my total wealth my monthly income money supply 16 / 20 Which is the largest figure: NNP GNP PI (disposable personal income) PI (personal income) 17 / 20 Select the correct statement: transfer payment are included in national income depreciation allowance is a part of GNP taxes are not included in NNP GDP means gross direct production 18 / 20 Personal income includes: transfer payments indirect taxes depreciation all of the above 19 / 20 If savings exceed investment then: national income rises national income falls national income is not affected none of the above 20 / 20 This statement is true NI= rent + interest + wages + profit NI= rent + interest + wages + taxes NI = Govt. expenditure + interest + wages + profit NI = rent + interest + wages + pension Your score isThe average score is 62% 0% Restart quiz CA Foundation Chapter 6 Determination of National Income Quiz 3 1 / 20 Which Ministry is responsible for calculating GDP in India? ministry of finance ministry of commerce and industry ministry of central statistical and program implementation ministry of consumer affairs 2 / 20 Which state of India currently has the highest Per Capita Income? goa delhi maharashtra punjab 3 / 20 Output means. ……………unless stated otherwise Gross output at mp (GDPmp) Net output at MP Gross output at FC none 4 / 20 Which is not added in the calculation of national income of India? the value of goods and services the sold value of the old fridge services rendered by the housewives both b & c 5 / 20 If the contribution of the agricultural sector is decreasing in a country’s economy, then what conclusion can be drawn? the country is growing in the direction of being a developed nation the country is moving towards becoming developing nation the country is moving towards becoming less developed nation the economic growth rate of the country has stopped 6 / 20 Which sector contributes the most to India’s economy? service sector manufacturing sector agricultural sector small scale industries 7 / 20 How much does the primary sector contribute to India’s GDP? 26% 20% 53% 14% 8 / 20 Which of the following is not true about final goods ? final gods satisfy wants of ultimate consumers and producers. final goods have direct demand as they satisfy the wants directly. final goods are subject to further transformation in the process of production. final goods are neither used up as raw-material nor for resale in the same year. 9 / 20 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. 1600 2200 1000 1400 10 / 20 If factor cost is greater than marker price, it means that indirect taxes indirect taxes) indirect taxes > subsidies i.t = subsidies none 11 / 20 Which of the following is not a component of domestic income? operating surplus compensation of employees net factor income from abroad mixed income 12 / 20 If factor cost is greater than marker price, it means that indirect taxes indirect taxes) indirect taxes > subsidies indirect taxes > subsidies C. i.t = subsidies none 13 / 20 Goods which are not used in the production of other goods are called: capital goods consumption goods producer goods intermediate goods 14 / 20 Piyush’s mother is a teacher. She also teaches Piyush. How would you treat this white calculating national income and domestic income ? it will be included in the national income, but not in the domestic income. it will be included in the domestic income, but not in the national income. it will be included in domestic income as well as national income. it will neither be included in the domestic income nor in the national income. 15 / 20 Which of the following is a synonym of “Undistributed Profits”? savings of private corporate sector reserves and surplus retained earnings all of these 16 / 20 Which out of the following is not included in estimation of NI? subsidized lunch old-age pension free medical facilities construction of a house 17 / 20 Following is an example of final good: flour used by a banker in making biscuits unsold stock of goods lying with the sellers tyres purchased by a transport company mobile sets purchased by a mobile dealer 18 / 20 Depreciation is the: loss of vale of fixed assets in use due to normal wear and tear loss of value of fixed assets in use due to normal rate of accidental damages loss of value of fixed assets in the due to foreseen obsolescence all of these 19 / 20 Which of following is not an intermediate goods? wheat gold service of doctor sand and bricks 20 / 20 Which of following is not included in national income ? factor income rent operating surplus transfer income Your score isThe average score is 61% 0% Restart quiz CA Foundation Chapter 6 Determination of National Income Quiz 4 1 / 27 Which of following is not a final good? machinery purchased by dealer machinery purchased by a factory use of petrol washing machine 2 / 27 Which of following is not a part of national income? depreciation net factor income from abroad operating surplus mixed income 3 / 27 Net national product at factor cost is also known as: net domestic product gross national product national income personal income 4 / 27 National Income differs from Net National Product at market price by the amount of: current transfers from rest of the world net indirect taxes (difference between indirect tax and subsidy) national debt interest it does not differ 5 / 27 Transfer payments refer to payments, which are made: without any exchange of goods and services to workers on transfer from one job to another as compensation to employees none 6 / 27 Transfer payments refer to payments, which are made: without any exchange of goods and services to workers on transfer from one job to another as compensation to employees none 7 / 27 Product method of calculating national income is also known as: income method value added method expenditure method distribution method 8 / 27 A consumption function describes the relation between ________& ________. Consumption and savings Demand and supply Savings and income Consumption and income 9 / 27 Marginal Propensity to Consume is the change in consumption per unit change in_______. Demand Consumption price Income 10 / 27 The marginal propensity to consume may be explained as a rate of change of consumption as income changes. Depends On Savings Depends on Consumption Correct Incorrect 11 / 27 National Income differs from Net National Product at market price by the amount of: current transfers from rest of the world net indirect taxes national debt interest it does not differ 12 / 27 In GNP calculation which of the following should be excluded? rental incomes interest payments dividends government transfer payment 13 / 27 Consider the following equation with reference to National Income:National income (market cost) – National Income (factor cost) = ______________ Revenue Taxes Market prices None of the above 14 / 27 GDP that takes into account the costs in terms of environmental pollution and exploitation of natural resources is called________. white GDP green GDP brown GDP non of these 15 / 27 The GDP estimation method measuring the aggregate value of goods and services produced by the firms is called_____. expenditure method income method consumption method product method 16 / 27 The National Statistical Office said the estimated annual per capita at current prices for 2022-2023 stands at_________. Rs. 1.72 Lakhs Rs. 2.72 Lakhs Rs. 6.72 Lakhs Rs. 10.72 Lakhs 17 / 27 Gross Domestic Product Less depreciation is_____________. Gross Domestic Investment Net Domestic Product Gross National Product Net national product 18 / 27 If we deduct depreciation from GNP the measures of aggregate income that we obtain is called________. Gross domestic product at market price Gross Domestic Product Net national product Personal income 19 / 27 The GDP deflator is also called: implicit price deflator explicit inflation index implicit inflation index expicit price deflator 20 / 27 __________ is assessment of economic production in any economy that includes current prices in its calculations. Ordinal GDP Interval GDP Nominal GDP Real GDP 21 / 27 Net National Product (NNP) at Factor cost is equal to national income always more than GNP more than national income less than national income 22 / 27 Which of the following organisation calculates Gross Domestic Products (GDP) in India? National Statistical Office Ministry of Commerce and Industry Indian Staistical Institute Reserve Bank of India 23 / 27 In India, National Income is computed by which of the following? Planning Commission Ministry of Finance Central Statistical Organisation Reserve Bank of India 24 / 27 The Income left with the people after the payment of personal direct taxes is called Personal Income Average Capital Investment Disposable Income Gross Domestic Product 25 / 27 As per Central Statistics Office (CSO), which is the present base year of IIP calculations? 2008-09 2009-10 2010-11 2011-12 26 / 27 Which among the following is included in the gross domestic product? Sale of used goods Bartered goods and services Sales of final goods Transfer payments 27 / 27 The GNP estimation method measuring the aggregate value of goods and services produced by the firms is called ______. expenditure method income method consumption method product method Your score isThe average score is 66% 0% Restart quiz
