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National Income MCQs - CSEET Economics


  1. -------------is a index of price changes of goods and services included in GDP a. GDP inflator b. GDP deflator c. GDP accelerator d. GDP decelarator Ans A

  2. .---------------means the actual income, which can be spend on consumption by individuals and families a) Personal disposable income b) Per capita income c) Net national income d) Gross national income Ans A

  3. Which of the following is not included in the estimates of national income a) Sales of collector items b) Additional to inventory, but not sale of the company products c) Market ret of self owned house d) Cost of government services Ans A

  4. Which is not correct? a) NNP at market price = GNP at market price+ Depreciation b) NDP at Market price = NNP at market price-net factor income from abroad c) NDP at factor cost= NDP at market price-indirect taxes+ subsidies d) GDP at factor cost = NDP at factor cost+ depreciation Ans A

  5. Which is correct? a) National income = NDP at factor cost-net factor income from abroad. b) GNP at factor cost = GNP at market price + net indirect tax c) National income = Domestic income + Net factor income from abroad. d) GDP at factor cost = NDP at factor cost – depreciation Ans C

  6. Which one leads to factor cost? a) Market price – indirect taxes b) Market price -net indirect taxes c) Market price + indirect taxes d) Market price +net indirect taxes Ans B

  7. Basis of the difference between the concepts of market price and factor cost is a) Direct taxes b) Indirect taxes c) Subsidies d) Net indirect taxes Ans D

  8. Which one includes depreciation? a) GNP at market price b) NNP at market price c) NNP at factor cost d) None of these Ans A

  9. Which of the statements are right

  10. GDP is a better measure of national income than GNP

  11. GNP is always higher than GDP. a) Only 1 b) Only 2 c) Both 1 and 2 d) Neither 1 or 2 Ans D

  12. The term national income represents a) GNP at market price minus depreciation b) GNP at market price – depreciation + net factor income abroad c) GNP at market price – depreciation and indirect taxes + subsidies d) GNP at market prices minus net factor income from abroad. Ans C

  13. The impact of externality is a) Positive b) Negative c) Either positive or negative d) Neither positive not negative Ans C

  14. Market price of the final goods and services, including depreciation, produced within the domestic territory of a country during an accounting year is called a) GDP at market price b) GNP at market price c) GDP at factor cost d) GNP at factor cost Ans A

  15. The national income of a country for a given period is equal to the a) Total value of goods and services produced by the nationals b) Sum of the total consumption and investments expenditure c) Sum of personal income of all individuals d) Money value of final goods and services produced Ans D

  16. Which one of the following the most appropriate method to measure the economic growth of a country? a) National income b) Net national product c) Gross capital formation d) Gross domestic product Ans D

  17. In which of the sectors, growth in GDP continuously decreasing from 2013? a) Agriculture, forestry and fishing b) Industry c) Manufacturing d) Financing, real estate and professional services Ans A

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