CBSE Questions for Class 12 Commerce Economics National Income Accounting Quiz 4 - MCQExams.com

Injection into the circular flow are ________.
  • investment
  • government spending
  • exports
  • all of the above
Leakages from the circular flow are _______.
  • savings, net taxes, imports
  • consumption, taxes and exports
  • investment, subsidy, imports
  • depreciation, savings, subsidy
From the following equation estimate disposal income (Y) when consumption (C) is Rs. 910.
C=Rs. 160+0.75Y$$_d$$
  • Rs. 1100
  • Rs. 900
  • 1000
  • 800
In small sector net value added is estimated by ________.
  • income method
  • expenditure method
  • production method
  • survey method
__________ refers to an economic model which describes the reciprocal circulation of income between producers and consumers.
  • Multiplier effect
  • Circular flow of income/money
  • Vicious circle of poverty
  • Inflationary pressure
Mixed income refers to the income of: ______.
  • small enterprises
  • traders
  • self employed persons
  • all the three
If there is a simultaneous fall in consumers disposal income as well as number of suppliers of a product in the market, the _________.
  • equilibrium quantity will decrease
  • equilibrium price will decrease
  • equilibrium price will go up
  • equilibrium quantity will increase
In a circular flow, household sector is responsible for ________.
  • consumption
  • production
  • innovation
  • regulation
From the following equation estimate disposal income (Y) when consumption C=is Rs. 1000 is _______.
C=Rs. 150+0.85Y$$_d$$
  • Rs. 1000
  • Rs. 800
  • Rs.900
  • 1100
 __________ are financial assets which are not a medium of exchange but are a close substitute for a transaction of business. 
  • Equivalent money
  • FIAT money
  • Token money
  • Near money
Given Real GDP 9% and rate of inflation 2.25%, the norminal GDP will be ___.
  • 9%
  • 11.25%
  • 6.75%
  • 8%
From the following equation estimate disposal income (Y) when consumption C=is Rs. 760 is ________.
C=Rs. 160+0.75Y$$_d$$
  • Rs. 1000
  • Rs. 900
  • Rs. 800
  • Rs. 750
Inventories are assets __________________.
  • Held for sale in the ordinary course of business
  • In the production process for such sale
  • In the form of material or supplied to be consumed in the production process or in the rendering of service
  • All of the above
Which of the following affects national income? 
  • Goods and Services tax
  • Corporation tax
  • Subsidies
  • None of the above
Inventory is valued at _____________.
  • Cost price
  • Replacement price
  • Both (a) and (b) whichever is lower
  • Both (a) or (b) whichever is higher
Which one of the following statements are correct?
(i) Inventory includes raw materials, finished goods and goods in process
(ii) Inventory is a part of the working capital
(iii) Inventory includes goods likely to be purchased in the coming months
Select the correct answer using the codes given below.
  • I, II and III
  • II and III
  • I and III
  • I and II
Which of these is not a feature of a Capitalist economy?
  • Right of private property
  • Social justice
  • Profit maximization
  • Consumer sovereighty
If at the beginning and ending of the period, goods inventories are $$Rs. 400$$ and $$Rs. 700$$ respectively and cost of goods sold is $$Rs 3400$$. Then net purchases are __________.
  • $$Rs. 3700$$
  • $$Rs. 3400$$
  • $$Rs. 3100$$
  • $$Rs.3000$$
Which of the following is not classified as inventory in the financial statements?
  • Finished goods
  • Work-in-progress
  • Stored and spares
  • Advance payments made to suppliers for raw materials
Accounting policy for inventories of an enterprise is, 'Inventories are valued at the lower of cost or the net realizable value.' Which accounting principle is followed by the enterprise?
  • Materiality
  • Prudence
  • Substance over form
  • Matching
Income method considers _________.
  • only primary factors of production
  • only secondary factors of production
  • both (a) and (b)
  • none of above
Expenditure on foreign financial assets is included in national income under the expenditure method on ________.
  • gross basis
  • net basis
  • real time basis
  • none of the above
Goods produced in preceding periods are ___________ national income under expenditure method.
  • excluded from
  • included from
  • no specific rule
  • none of above
Expenditure on raw materials and intermediate goods and services is ___________ national income.
  • excluded from
  • included from
  • no specific rule
  • none of above
Net National Expenditure can also be calculated as __________.
  • Gross National Expenditure $$-$$ Replacement expenditure
  • Gross National Expenditure $$+$$ Replacement expenditure
  • Gross National Expenditure $$-$$ depreciation
  • Gross National Expenditure $$+$$ depreciation
Under the expenditure method _________.
  • expenditure on financial assets which are produced and owned within the country is excluded
  • expenditure on financial assets of foreign countries is included
  • both above are true
  • none is true
In which case, net income from abroad need to be added separately under the income method?
  • If national income is calculated from incomes received by people
  • If national income is calculated from data regarding incomes paid out by producers
  • In both above methods, added separately
  • In neither of the above methods, added separately
Transfer incomes are ___________ national income.
  • included in
  • excluded from
  • sometimes included, sometimes excluded
  • none of above
Aggregate of factor incomes of all the factors of production of all the producing units form the subject matter of _______.
  • Value Added Method
  • Income method
  • Expenditure Method
  • None of the above
Which of the following is true?
  • Personal disposable income $$=$$ consumption $$+$$ savings
  • Personal disposable income $$=$$ personal income $$-$$ personal taxes
  • Both above are true
  • None of the above is true
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