National Income

Compensation of employees include:

• wages and salaries in cash
• wages and salaries in kind
• pension on retirement
• all of these

Which of these is a transfer payment:

• Interest on national debt
• Retirement pension
• Old age pension 
• Donations

National Income refers to

• Factor Income only
• income of normal residents only
• sum of domestic income and NFIA
• All of these

Problem of double counting can be avoided by

• Final output method
• Value added method
• both (a) and (b)
• Neither (a) or (b)

Which of these is not included in national income while calculating income by  income method

• Rent 
• Mixed income
• Fixed Investment
• Undistributed profit

Purchase of machine for resale is 

• Final Good
• Intermediate good
• Sometimes intermediate sometimes final
• Neither Final nor Intermediate

Which of the following is not included in  national income?

• transfer payment
• Income from sale of shares
• Income from sale ofsecond hand goods 
• imputed rent of self occupied house

When will NDP at market price be equal to NDP at factor cost ?

• Indirect taxes=subsidy
• indirect taxes >subsidy 
• indirect taxes < subsidy 
• none of these

Which of the following is a final expenditure ?

• Car purchased by a dealer
• Vegetables purchased by a restaurant
• Milk purchased by a tea-maker
• Car purchased by a household

The net value of GDP after deducting depreciation from GDP is

• a. Net national product
• b. Net domestic product
• c. Gross national product
• d. Disposable income