National Income MCQs - CSEET
1. Which statement is true?
A.Nationl Expenditure = National income
B.Nationl Expenditure = National income + National savings
C.Nationl Expenditure = National income + Taxes
D.Nationl Expenditure = National income - Taxes
Answer: Option A
2. Which statement is true?
A.National Income = National expenditure - indirect taxes
B.NI = GNP - NNP
C.NI = NNP - indirect taxes
D.NI = PI
Answer: Option C
3. There are methods of measuring national income:
A.5
B.2
C.1
D.3
Answer: Option D
4. If we compare GDP and GNP, then:
A.GNP = GDP - net income from abroad
B.GNP = GDP + net income from abroad
C.GNP = NNP - net income from abroad
D.GNP = NNP + net income from abroad
Answer: Option B
5. It is deducted from GNP to get NNP:
A.Indirect taxes
B.Depreciation
C.Direct taxes
D.Transfer payment
Answer: Option B
6. It is added to GDP to get GNP
A.Depreciation allowance
B.Direct taxes
C.Subsidies
D.Net income from abroad
Answer: Option D
7. Select the correct statement:
A.Transfer payment are included in national income
B.Depreciation allowance is a part of GNP
C.Taxes are not included in NNP
D.GDP means Gross Direct Production
Answer: Option B
8. Which is the largest figure:
A.NNP
B.GNP
C.DPI
D.PI
Answer: Option B
9. Which is a flow concept:
A. Number of my shirts
B. My total wealth
C. My monthly income
D. Money supply
Answer: Option C
10. To avoid double counting when GDP is estimated, economists:
A. Use GDP deflator
B. Calculate value added at each stage of production
C. Use retail prices
D. Use price of only intermediate goods
Answer: Option B
11. Net investment is equal to
a. Gross investment + depreciation
b. gross investment - depreciation
c. gross investmetn * depreciation
d. gross investment / depreciation
Answer B
12. capital goods are those goods
1. which are used in the production process or several years
2. which are used in the production process for few years
3. which involve depreciation losses
4. Both a and b
Answer D
13. In the production of sugar, sugarcane is
a. final good
b, capital good
c. an intermediate good
d. none of those
Answer C
14. Those goods which satisfy human wants directly are called
1. intermediate goods
2. consumer goods
3. capital goods.
4. None of the above
Answer B
15. which of the following leads to depreciation?
1. Normal wear and tear
2. damages due to floods
3. damages due to market crash
4. None of the above
Answer A
16. which one refers to net indirect taxes?
1. indirect taxes + subsidies
2. Indirect taxes – subsidies
3. Direct taxes – subsidies
4. None of the above
Answer B
17. Domestic product is equal to
1. National product + net factor income from abroad
2. National product – net factor income from abroad
3. national product / net factor income from abroad
4. National product * net factor income from abroad
Answer B
18. which one includes depreciation?
1. GNP at market price
2. NNP at market Price
3. NNP at factor cost
d. None of these
Answer A
19. which of the following is not transfer payment?
1. interest on national debt
2. Retirement pensions
c. Old age pensions
d. Donations
Answer B
20. In India, supplier of money are
1. Government of the country
2. Banking system of the country
3. Both a and b
4. None of these
Answer C
