Test 2

In the production of sugar, sugarcane is

• Consumer good

• Capital good

• intermediate good

• Final good

Net investment is equal to

• Net Investment = Gross Investment / Depreciation
• Net Investment = Gross Investment x Depreciation
• Net Investment = Gross Investment - Depreciation
• Net Investment = Gross Investment + Depreciation

Income of the family is which variable?

• Flow

• Stock

• Ordinal
• Continuous

Quantity measured per unit of time period is called

• Flow variable

• Stock variable

• Inventory

• Consumables

Which of the following is incorrect?

• NNP at Market Price=GNP at market price + Depreciation

• NDP at Market Price=NNP at market price - Net factor income from abroad

• NDP at Factor Cost=NDP at market price - Indirect taxes+Subsidies

• GDP at Factor Cost=NDP at factor cost + Depreciation

Basis of difference between factor cost and market price is

• Direct taxes

• Indirect taxes

• Subsidies

• Net indirect taxes

Which of the following is not included in the final consumption expenditure ?

• 
  Household expenditure on food

• Government expenditure on goods and services
• Household expenditure on education

• Expenditure on raw material

Which of the following is not included, but estimating income through the income method?

• Rent

• Mixed income

• Fixed investment

• Undistributed profits

What is the function of the GDP deflator?

• A) It is a measure of inflation which evaluates the entire range of goods and services produced in the economy.

• B) It shows real GDP growth on the basis of current production.

• C) The GDP deflator is in real terms while the CPI is in nominal terms.

• D) None of the above

Which of the following items is not included while estimating GNP of a country at market price?

• Sales of the enterprises

• Indirect taxes

• Remittances by NRIs

• Subsidy