CBSE Questions for Class 12 Commerce Economics National Income Accounting Quiz 8 - MCQExams.com

Which of the following is a stock?
  • Wealth
  • Saving
  • Exports
  • Profits
Sugar purchased by a Sweet shop is an ______ good, while it is a _______ good when it is purchased by a consumer. 
  • capital, final
  • final, intermediate
  • intermediate, final
  • final, producer
Depreciation of fixed capital assets refers to _______________.
  • Normal wear and tear
  • Foreseen obsolescence
  • Normal wear & tear & foreseen obsolescence
  • Unforeseen obsolescence
Which of the following is a flow?
  • Deposits in a bank
  • Capital
  • Depreciation
  • Wealth
Circular Flow of Income is correctly represented in the diagram:
Change in stock is negative when:
  • Closing stock $$>$$ Opening stock
  • Closing stock $$<$$ Opening stock
  • Closing stock $= 0$$
  • Opening stock $= 0$$
Net factor income from abroad is taken into account when national income is calculated by: 
  • Value added method
  • Income method
  • Expenditure method
  • Any of the three methods
Are the following statements true or false? Give reasons.
Production of services for self-consumption are not included in national income. 
  • True
  • False
Which of the following is included in compensation of employees? 
  • Dearness Allowance
  • Tools given to employees to be used during work
  • Payment by insurance company to an injured employee
  • Contribution by employee to provident fund
Activities related to coordinating, controlling and planning flow of inventory are classified as ________________.
  • decisional management
  • throughput management
  • inventory management
  • manufacturing management
Which method of inventory valuation helps in reducing the burden of income tax in times of rising prices?
  • Last-in-first-out
  • First-in-first-out
  • Average cost
  • Base stock method
Which one out of the following is not an inventory valuation method?
  • FIFO
  • LIFO
  • Weighted Average
  • EOQ
A higher inventory ratio indicates ____________.
  • Better inventory management
  • Quicker turnover
  • Both A and B
  • None of the above
When planned savings is less than planned investment, then: 
  • national income is likely to fall
  • there will be no change in national income
  • national income is likely to rise
  • none of the above
National Income in India is the ___________________.
  • Net National Product at market price
  • Net National Product at Factor cost
  • Net Domestic Product at market price
  • Net Domestic Product at factor cost
In India the term National Income represents ___________________.
  • Gross national product at market prices minus depreciation.
  • Gross national product at constant prices minus depreciation plus net factor income from abroad.
  • Gross national product and indirect taxes plus subsidies and net factor income from abroad.
  • Gross national product at constant prices minus net factor income from abroad.
What is correct about the 'normal profit' in an economy like India?
  • It is the minimum profit necessary to attract and retain suppliers in a perfectly competitive market.
  • the profit at which a buyer is eager to purchase a particular volume of the goods.
  • The maximum gain a manufacturer can manage out of a market.
  • None of the above.
The national income of a country for a given period is equal to the _____________________.
  • total value of goods and services produced by the nationals
  • sum of total consumption and investment expenditure
  • sum of personal income of all individuals
  • money value of final goods and services produced
National income is the sum of factor incomes accuring to :
(Choose the correct alternatives )
  • Nationals
  • Economic territory
  • Residents
  • Both residents and non-residents
State true or false  with reason: Intermediate good remain within the production boundary.
  • True
  • False
___________________ refers to the difference between factor income received from the rest of the world and factor income paid to the rest of the world.
  • Net factor income to abroad
  • Net factor income from abroad
  • Net indirect tax
  • Subsidies
Circular flow of income refers to cycle of ________________ in the production process, its distribution among the factors of production and finally, its circulation from households to firms in the form of consumption expenditure on goods and services produced by them.
  • Generation of income
  • Generation of gain
  • Generation of services
  • Generation of goods
__________ are those final goods which help in production of other goods and services.
  • Consumption goods
  • Capital goods
  • Both A and B
  • None of the above
___________ help in raising production capacity.
  • Consumption goods
  • Capital goods
  • Producer goods
  • Both A and C
___________________ are neither included in national income nor in domestic income.
  • Final goods
  • Intermediate goods
  • Both A and B
  • None of the above
What is/are the components of net factor income from abroad?
  • Net compensation of employees
  • Net income fro property and entrepreneurship
  • Net retained earnings
  • All of the above
Net factor income from abroad (NFAI) = National income - _________. 
  • Domestic income
  • Net indirect tax
  • Subsidies
  • Market price
_________ refers to net market value of all final goods and services produced within the domestic territory of a country during a period of one year.
  • GDP at MP
  • GDP at FC
  • NDP at MP
  • NDP at FC
_________ refers to net market value of all final goods and services produced by the normal residents of a country during a period of one year.
  • GNP at MP
  • GNP at FC
  • NNP at MP
  • NNP at FC
_________ refers to net money value of all final goods and services produced within the domestic territory of a country during a period of one year.
  • GDP at MP
  • GDP at FC
  • NDP at MP
  • NDP at FC
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