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CBSE Questions for Class 12 Commerce Economics National Income Accounting Quiz 5 - MCQExams.com
CBSE
Class 12 Commerce Economics
National Income Accounting
Quiz 5
In India, poverty is measured in ___________ terms.
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absolute
0%
relative
0%
both
0%
none of the above
When poverty is not related to income or consumption expenditure, it is ___________.
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0%
absolute
0%
relative
0%
below poverty line
0%
none of the above
India's per capita income is showing a year on year ___________.
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increase
0%
decrease
0%
constant
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none of above
In Dx$$=$$f(Px, T, Y)Y is?
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Income level of consumer
0%
Tastes of consumer
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Quantity of demand of goods
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None of the above
Explanation
In Dx = f(Px, T, Y)
Here Px is the price of commodity X, T is taste and preference and where Y is income of consumer.
Hence Y is the income of consumer so option a is the correct answer.
For developed economies which of the following methods is most suitable?
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Value Added Method
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Income Method
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Expenditure Method
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Product Method
These days, an increasing proportion of national income is being measured by _______.
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Value Added Method
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Income Method
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Expenditure Method
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Product Method
"Determination of wage rate, distribution of national income" was the theory given by?
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Adam smith
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A. marshall
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Ricardo
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Pigon
Explanation
"Determination of wage rate, distribution of national income" was the theory given by Alfred marshall.
The wage rate is determined by the intersection of supply and demand, a national
income total for a given country and period can be apportioned among smaller spatial units or shorter periods.
Hence option B is correct.
In countries like India, in practice _________.
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contributions of different sectors are calculated by different methods
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one consistent method is used
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both above are true depending upon facts and circumstances
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none of above is true
The net values added (NVA) method of measuring national income is also known as ______.
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net output method
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p
roduction method
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industry of origin method
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all of the above
Explanation
The NVA method of measuring national income is also known as net output method, production method and industry of origin method.
For studying the various national income components it is required that data should be collected on _______________.
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Expenditure
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Investments
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Income
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All of the above
Income method focuses on measurement of national income at _________.
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phase of income disposition
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phase of income distribution
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phase of production of goods and services
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all of the above
Explanation
There are three different phases in circular flow of national income, viz. production, income and expenditure. They represent three related aspects, namely, production (i.e., generation of income), distribution (of income) and disposition (of income, i.e., expenditure).
The net output emerging from production process gets distributed in the form of money income (rent, wages, interest and profit) among factors of production for rendering productive service in the production of output.
Income method indicates distribution of income among factors of production which help to produce. Hence, correct answer is option B.
Excise Duty is leviable on __________, but payable only on __________of goods.
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manufacture, removal
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removal, manufacture
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import, export
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export, import
The production method of calculating national income is also known as _________.
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income method
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subtraction method
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value added method
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repeated distribution method
India's National income is showing a / an _____________.
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Increasing Trend
0%
Decreasing Trend
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Constant Trend
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Fluctuating Trend
Mixed income of the self employed means __________.
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gross profits received by proprietors
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rent, interest and profit of an enterprise
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combined factor payments, which are not distinguishable
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wages due to family workers
Explanation
Mixed income of the self employed means combined factor payments of rent, wages, interest and profits received by the self-employed professional, which are not distinguishable.
Net national product at factor cost is ___________.
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equal to national income
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less than national income
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more than national income
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sometimes less than national income and sometimes more than it
Explanation
Net national product at factor cost is equal to national income, because $$NNP_{FC}$$ refers to Net National Product ($$NNP$$) which is a measure to estimate national income.
Identify the items which is not a factor payment.
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Free uniform to defense personnel
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Salaries to the members of Parliament
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Imputed rent of an owner occupied building
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Scholarship given to the scheduled caste students
Explanation
Factors payments are those payments, which are made to factors of production e.g. rent, interest, profit, wages etc. Scholarships given to the scheduled caste students is not a factor payment, it is a transfer payment and it will not be included in national income.
If Willingness to Save is less, the level of
________
will
be higher.
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0%
Government regulated Savings
0%
Compulsory Savings
0%
Forced Savings
0%
All of the above
Net National Product at Factor Cost can be calculated as ___________.
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NNP at Market Prices less Net Indirect Taxes
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GNP at Factor Cost less Depreciation
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NDP at Factor Cost plus Net Factor Income from abroad
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All of the above
Per capita national income is measured as ________.
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$$\dfrac{NNP}{Population}$$
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$$\dfrac{\text{Total capital}}{Population}$$
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$$\dfrac{Population}{NNP}$$
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None of the above
Explanation
Per capita national income refers to income per head.
It can be calculated as $$\dfrac{NNP}{Population}$$
The difference between the $$GDP_{MP}$$ and $$GNP_{MP}$$ is ____________.
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0%
net factor income from abroad
0%
depreciation
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net income
0%
none of these
Explanation
GNPMP = GDPMP + Net factor income from abroad
Hence the difference between the GDPMP and GNPMP is net factor income from abroad.
GNPMP can be less than GDPMP when NFIA is negative.
Hence a is the correct answer
Which one of the following agencies in India is responsible for computation of national income?
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NCAER
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CSO
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NSS
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RBI
Explanation
Central Statistical Organisation (1949) now renamed as Central Statistical Office (CSO) has been formulating National Income.
It comes under the Ministry of Statistics and Programme Implementation.
Hence b is the correct option.
Which of the following equations regarding GDP and GNP at Factor Cost is true?
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GDP or GNP at Market Prices = GDP or GNP at Factor Cost Less Indirect Taxes, less subsidies
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GDP or GNP at Market Prices = GDP or GNP at Factor Cost Plus Indirect Taxes, less subsidies
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GDP or GNP at Market Prices = GDP or GNP at Factor Cost Less Indirect Taxes, plus subsidies
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GDP or GNP at Market Prices = GDP or GNP at Factor Cost Plus Indirect Taxes, plus subsidies
Explanation
Gross domestic product or gross national product at market price is the total product produced in an economy. In order to make it equal to GDP or GNP FC, indirect taxes should be added and subsidies are subtracted. Hence, the correct option is B.
Net National product (NNP) at factor cost was ________ in 1950-51.
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Rs. 92,367 crore
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Rs. 1,02,367 crore
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Rs. 1,22,367 crore
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Rs. 2,04,924 crore
GNP at Factor Cost Less Depreciation equals ___________.
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NNP at Market Price
0%
NNP at Factor Cost
0%
GDP at Market Price
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GDP at Factor Cost
Explanation
NNP at market price is
Gross National Product
(GNP) at market price minus depreciation. Net National Product at factor cost is also called as national income. Net National Product at factor cost is equal to sum total of value added at factor cost or net domestic product at factor cost and net factor income from abroad. Hence, correct answer is option B.
GNP at Market Price Less Net Indirect Taxes equals -
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GDP at Market Price
0%
GNP at Factor Cost
0%
NDP at Market Price
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NDP at Factor Cost
Suppose $$NDP_{MP}$$ is constant and depreciation is increasing then $$GDP_{MP}$$ ______________.
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decreases
0%
increases
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decreases with same amount of depreciation
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increases with same amount of depreciation
Which of the following equation is used to arrive at GNP at Factor Cost?
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GNP at Factor Cost = GDP at Factor Cost + Net Factor Income from Abroad
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GNP at Factor Cost = GDP at Factor Cost X Net Factor Income from Abroad
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GNP at Factor Cost = GDP at Factor Cost - Net Factor Income from Abroad
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GNP at Factor Cost = GDP at Factor Cost + Net Factor Income from Abroad - Depreciation
Which of the following is incorrect?
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GNP at Market Price - Depreciation = NNP market price
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GNP at Market Price - NFIA = GDP market price
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GNP at Market Price - Net indirect tax = GNP at Factor Cost
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None of these
NNP at factor cost in 2010-11 was __________.
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0%
Rs. 20,41,776 crore
0%
Rs. 42,60,000 crore
0%
Rs. 27,64,795 crore
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Rs. 21,40,536 crore
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