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Economics National Income MCQs -CSEET

1. The difference between value of output and value added is :

(a) Depreciation

(b) Intermediate consumption

(c) Net indirect taxes

(d) NFIA

2. Product method of calculating national income is also known as:

(a) Income method

(b) Value added method

(c) Expenditure method

(d) Distribution method

3. Transfer payments refer to payments, which are made:

(a) Without any exchange of goods and services

(b) To workers on transfer from one job to another

(c) As compensation to employees

(d) None

4. National Income differs from Net National Product at market price by the amount of:

(a) Current transfers from rest of the world

(b) Net Indirect Taxes

(c) National debt interest

(d) It does not differ


5. GDPMP = GDPFC + ................. :

(a) Depreciation

(b) NFIA

(c) Net Indirect Tax

(d) Subsidies

6. GNP = GDP + ...............

(a) Depreciation

(d) Indirect taxes

(c) NFIA

(d) Subsidies

7. National Income doesn’t include:

(a) Interest on unproductive national debt

(b) Income for government expenditure

(c) The payments by the household to firm for the purchase of goods and services

(d) Undistributed profit

8. Which of the following is not correct?

(a) NNPMP = GNPMP - depreciation

(b) NNPMP = NNPFC + net indirect taxes


(d) NDPFC - GDPFC - depreciation

9. Net national product at factor cost is also known as:

(a) Net Domestic product

(b) Gross National product

(c) National Income

(d) Personal Income

10. In GNP calculation which of the following should be excluded?

(a) Rental incomes

(b) Interest payments

(c) Dividends

(d) Government transfer payment

11. The most important problem of estimating National Income is..

(a) Unorganised Market

(b) Double Counting

(c) Population rise

(d) Income Inequalities

12. Goods and services for final consumption are:

(a) Produced goods

(b) Consumer goods

(c) Giffen goods

(d) None of these

13. Real National Income means national income measured at:

(a) Constant Prices

(b) Current Prices

(c) Wholesale Prices

(d) Retail Prices

14. Which one of the following is correct?



(c) NNPMP= NNPFC - Depreciation

(d) NNPMP-NNPFC + Depreciation

15. Same as Q.11

16. Same as Q.6

17. Which of the following represents National Income?

(a) GDP at factor cost

(b) N D P at factor cost

(c) N N P at market price

(d) N N P at factor cost.

18. GDP at factor cost is equal to GDP at market price minus plus subsidies.

(a) direct taxes.

(b) indirect taxes.

(c) foreign loans.

(d) depreciation.

19. Transfer payments are.

(a) Payments transferred from Central Government account to State Government account.

(b) Payments made to factors of production by the organizer.

(c) Payments made for no return service.

(d) None of the above.

20. Real national income means the national income measured in terms of.

(a) Constant prices.

(b) Current prices.

(c) Wholesale prices.

(d) Retail prices.

21. GNP is equal to ................. plus Net foreign income from abroad.

(a) NNP at factor cost

(b) GDP

(c) NNP at market price

(d) national income

22. Personal disposable income means :

(a) Personal income - personal direct taxes

(b) Personal income - Net Indirect taxes

(c) Personal income + personal direct taxes

(d) Personal income + Net indirect taxes

23. National Income estimation in India is done by :

(a) Reserve Bank of India

(b) Planning Commission

(c) Central Statistical Organisation

(d) Ministry of Finance

24. The most important problem in Estimating GNP is :

(a) Double counting

(b) Smuggling

(c) Black marketing

(d) Unorganised market

25. NNPFC minus ................. = NDPFC

(a) NFIA

(b) Net indirect taxes

(c) Depreciation

(d) None.

1 (b) 2 (b) 3 (a) 4 (b) 5 (c) 6 (c)

7 (a) 8 (c) 9 (c) 10 ‘(d) 11 (b) 12 (b)

13 (a) 14 (a) 15 (b) 16 (c) 17 (d) 18 (b)

19 (c) 20 (a) 21 (b) 22 (a) 23 (c) 24 (d)

25 (a)

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