MACRO ECONOMICS - MODULE -1 QUIZ

Multiple Choice

Output of a nation in certain period is called as ____________

• Measurement of National Income

• Economic Growth

• Inflation Rates

• Government Policies

Multiple Choice

What does National Income represent?

• Total value of goods and services produced

• Total value of imports and exports

• Total value of government spending

• Total value of foreign investments

Multiple Choice

When did the estimation of National Income in India formally begin?

• 1947

• 1949

• 1951

• 1955

Multiple Choice

What are the challenges of measuring National Income (NI)?

• Stage of economic activity

• Types of goods and services

• Problem of double counting

• All of the above

Multiple Choice

What are the three ways national income can be analyzed based on the circular flow of production, income, and expenditure?

• As a flow of goods and services

• As a flow of incomes

• As a flow of expenditure on goods and services

• As a flow of investments

Multiple Choice

The factor income approach to calculating GDP can be summarized as the summation of

• consumption, investment, government purchases, and exports.

• consumption, investment, government purchases, and net exports.

• consumption, investment, government purchases, and imports.

• wages, interest, rent, and profit.

• wages, interest, imports and rents

Multiple Choice

In the circular flow of income, firms pay households for:

• Goods and services

• Labor, land, and capital

• Taxes

• Government services

Multiple Choice

What are the main components of National Income Accounting?

• Consumption

• Investment

• Government Spending

• All of the above

Multiple Choice

What is the difference between exports and imports as described in the image?

• Exports + Imports

• Exports - Imports

• Exports x Imports

• Exports / Imports

Fill in the Blanks

Fill in the blank: Government Spending (G) includes all expenditure by central, state, and local governments on public goods and services, salaries of government employees, and

programs.

Multiple Choice

Which component of National Income refers to the total spending by households on goods and services?

• Investment

• Consumption

• Government Spending

• Net Exports

Multiple Choice

What are the components of National Income as described in the image?

• Consumption

• Investment

• Government Spending

• Net Exports

Multiple Choice

What is the formula for calculating NNP at FC?

• GDP at MP + Net Factor Income from Abroad - Depreciation - Indirect Taxes + Subsidies

• GDP + GNP - Depreciation

• GNP - Depreciation + Indirect Taxes

• GDP + Net Factor Income from Abroad

Multiple Choice

What are the three approaches to calculating National Income as shown in the diagram?

• Expenditure Approach, Income Approach, Output Approach

• Consumption Approach, Investment Approach, Government Approach

• Income Approach, Profit Approach, Revenue Approach

• Expenditure Approach, Profit Approach, Revenue Approach

Multiple Choice

What is the formula for calculating Net National Product (NNP) from Gross National Product (GNP)?

• NNP = GNP - Depreciation

• NNP = GNP + Depreciation

• NNP = GNP * Depreciation

• NNP = GNP / Depreciation

Multiple Choice

What is the formula for calculating Net National Product at Factor Cost (NNP)?

• NNP = NNP_MP + Net Indirect Taxes

• NNP = NNP_MP - Net Indirect Taxes

• NNP = NNP_MP * Net Indirect Taxes

• NNP = NNP_MP / Net Indirect Taxes

Multiple Choice

What are the components of the National Income calculated using the Income Method?

• Compensation of Employees

• Operating Surplus

• Mixed Income of the Self-Employed

• All of the above

Multiple Choice

What is the formula to calculate National Income (NNP)?

• NNP = NDP + NFIA

• NNP = NDP - NFIA

• NNP = NDP * NFIA

• NNP = NDP / NFIA

Multiple Choice

What does the Value-Added Method calculate in an economy?

• The total output of all sales

• The contribution of each producing enterprise

• The cost of raw materials

• The value of intermediate consumption