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

Ans. (b) Intermediate consumption

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

(a) Income method

(b) Value added method

(c) Expenditure method

(d) Distribution method

Ans : (b) Value added 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

Ans: (a) Without any exchange of goods and services

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

Ans : (b) Net Indirect Taxes

5. GDPMP = GDP + ________ :

(a) Depreciation

(b) Indirect taxes

(c) NFIA

(d) Subsidies

Ans: (c) NFIA

6. 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

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

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

Ans: (a) Interest on unproductive national debt

8. Which of the following is not correct ?

(a) NNPMP = GNPMP. depreciation

(b) NNPMP = NNPFC + net indirect taxes

(c) GDPMP = GNPMP +.NFIA

(d) NDPFC = GDPFC – depreciation

Ans: (c) GDPMP = GNPMP +.NFIA

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

Ans : (c) National Income

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

(a) Rental incomes

(b) Interest payments

(c) Dividends

(d) Government transfer payment

Ans: (d) Government transfer payment