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NATIONAL INCOME ACCOUNTING

Total questions: 35

Worksheet time: 18mins

Name
Class
Date
1.

1.How many approaches in calculating national income?

a)

4

b)

3

c)

2

d)

1

2.

4. The national income is

a)

a. NNP at factor cost

b)

b. NNP at market price

c)

c. GNP at market price

d)

d. GNP at factor cost

3.

5.The value of the output of all goods and services produced within a country in a year.

a)

total output

b)

Gross Domestic Product

c)

national income

d)

net domestic product

4.

6.When a nation's exports exceed its imports and is calculated as exports - imports

a)

trade surplus

b)

trade deficit

c)

inventory

d)

gross domestic product

5.

7.When a nation's imports exceed its exports and is calculated as imports -exports

a)

inventory

b)

gross domestic product

c)

trade surplus

d)

trade deficit

6.

In a circular flow of income in a closed economy with government intervention, leakage consists of _________________.

a)

Investment and savings

b)

Savings only

c)

Savings and taxes

d)

Savings, taxes and imports

7.

Which of the following is considered to be an investment in the national income accounts?

a)

Increases in inventories of unsold goods

b)

Money deposited in a bank

c)

Purchases of land

d)

Purchases of Treasury bills

8.

National production means goods and services produced within the borders of a nation during a specified period.

a)

TRUE

b)

FALSE

9.

In order to calculate national production value, GDP values the goods based on the market price.

a)

TRUE

b)

FALSE

10.

Net national product does not include_______________.

a)

Interest on consumer loans

b)

Undistributed corporate profit

c)

Taxes on corporate profits

d)

Depreciation

11.

2.When will GDP at market price be equal to GDP at factor cost ?

a)

Indirect taxes=subsidy

b)

indirect taxes >subsidy

c)

indirect taxes < subsidy

d)

none of these

12.

4. The national income is

a)

a. NNP at factor cost

b)

b. NNP at market price

c)

c. GNP at market price

d)

d. GNP at factor cost

13.

6.When a nation's exports exceed its imports and is calculated as exports - imports

a)

trade surplus

b)

trade deficit

c)

inventory

d)

gross domestic product

14.

8.Which of the following is a final expenditure ?

a)

Car purchased by a dealer

b)

Vegetables purchased by a restaurant

c)

Milk purchased by a tea-maker

d)

Car purchased by a household

15.

9.Which is an example of a final good or service

a)

Coffee Beans at Starbucks

b)

T-Shirt at Polo Store

c)

Lumber at furniture store

d)

Wheat at a bakery

16.
Which of the following is not included in  national income?
a)
transfer payment
b)
Income from sale of shares
c)
Income from sale ofsecond hand goods 
d)
imputed rent of self occupied house
17.
When will NDP at market price be equal to NDP at factor cost ?
a)
Indirect taxes=subsidy
b)
indirect taxes >subsidy 
c)
indirect taxes < subsidy 
d)
none of these
18.
Which of the following is not an intermediate good for a former?
a)
Seeds
b)
Fertilizer
c)
Tractor
d)
All of these
19.
A firm's value added is equal to:
a)
Sales
b)
Profit
c)
Sales+Change in stock-Intermediate consumption
d)
Sales + Intermediate consumption
20.
If NDP at factor cost = Rs 2000 and net factor income from abroad =(-)500 , then NNP at factor cost will be:
a)
2500
b)
1000
c)
1500
d)
2000
21.
when will the NI be greater than DFI ?
a)
net factor income from abroad is zero 
b)
net factor income from abroad is positive 
c)
net factor income from abroad is negative
d)
none of the above
22.
The correct formula of Domestic income is .......
a)
NDP at FC
b)
GDP at MP
c)
NNP at FC
d)
GNP at MP
23.
What must be added to domestic factor income to obtain national income?
a)
Net factor income from abroad.
b)
Net indirect tax
c)
Depriciation
d)
Subsidy
24.

Which of the following is an example of STOCKS ?

a)

Capital

b)

Value addition

c)

Savings

d)

Both capital and savings

25.

Durable goods purchased by government for military purposes are?

a)

final goods

b)

intermediate goods

c)

material goods

d)

non material goods

26.

If we measure the flow at B by measuring the aggregate value of final goods and services produced by all the firms, it will be called ________________

a)

expenditure method

b)

product method

c)

income method

d)

both product and income method

27.

It refers to the net MONEY value of all the final goods and services produced within the domestic territory of a country during a period of one year.

a)

NDP fc

b)

NDP mp

c)

GDP fc

d)

GDP mp

28.

Which of the following is not one of the classifications of factor incomes?

a)

compensation of employees

b)

subsidies

c)

mixed income

d)

operating surplus

29.

Flow of factor services from households to firms and the flow of goods and services from firms to households is called

a)

money flow

b)

income flow

c)

product flow

d)

real flow

30.

Which of the following refers to money flows in an economy?

a)

Flow of factor services from households to business

b)

Flow of money across different sectors of the economy

c)

Flow of goods from firms to households

d)

Flow of services from firms to households

31.

The Circular Flow Diagram is a model showing

a)

that the different sectors of the economy are interdependent.

b)

how the market system works.

c)

the relationship between major sectors of the economy.

d)

the relative importance of the different sectors of the economy.

32.

Accounting of National Income at constant prices is known as ________

a)

Money income

b)

Real income

c)

Current income

d)

Current income

33.

Who all are normal citizens of india?

1. An Indian girl studying in USA since 2019

2. A korean working in WHO office in delhi for 2 years

3. An american diplomat working in india since 2017

4. Indian ambassador working in singapore

a)

2. and 4.

b)

1. 2. and 4.

c)

2. 3. and 4.

d)

all of the above

34.

Calculate NFIA when:

Factor Income From abroad= Rs. 500

Factor Income to abroad= Rs. 300

a)

Rs. 800

b)

Rs. 200

c)

Rs. 500

d)

none of the above

35.

Gross Investment= 7000

Net Investment= 5000

calculate Depreciation.

a)

1000

b)

12000

c)

2000

d)

- 2000