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