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 Blank

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