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Basic concepts related to national Income

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Which of the following are covered under the domestic territory of India?

a)

State bank of India in London

b)

Google office in India

c)

Office of Tata motors in Australia

d)

Russian Embassy in India

2.

Which one of the following is an intermediate product?

a)

purchases of pulses by consumers

b)

Machine purchased by a firm

c)

wheat purchased by a flour mill

d)

Wheat used by households

3.

Which one of the following is not an example of final goods?

a)

Chalk, dusters, etc. purchased by a school

b)

Fertilizers used by the farmers

c)

Wheat used by the flour mill

d)

All of the above

4.

Which of the following constitute the reason for difference between market price and factor cost?

a)

Indirect taxes

b)

Subsidies

c)

Both Indirect taxes and subsidies

d)

Neither Indirect Taxes nor subsidies

5.

If factor cost is greater than the market price, then it means that:

a)

Indirect Taxes > Subsidies

b)

Indirect Taxes = Subsidies

c)

Indirect taxes < subsidies

d)

Indirect taxes >= Subsidies

6.

Final goods refer to those goods which are used either for.................... or for........................ .

a)

Consumption, investment

b)

Consumption, resale

c)

Resale, investment

d)

Resale, further production

7.

Net factor income from abroad is:

a)

Exports minus imports

b)

Visible Exports minus visible imports

c)

Factor incomes received from abroad minus factor incomes paid abroad

d)

Factor incomes received from abroad

8.

Depreciation means:

a)

Destruction of a plant in a fire accident

b)

Loss of fixed assets over time due to wear and tear

c)

Loss of fixed assets in an earthquake

d)

Closure of the plant due to lockout

9.

Market price and factor cost will be equal when there is:

a)

No direct taxes

b)

No Indirect taxes

c)

No subsidy

d)

No Indirect tax and no subsidy

10.

Which of the following is an example of transfer income?

a)

Bonus

b)

Unemployment Allowance

c)

Compensation from the employer

d)

All of the above

11.

Which of the following is an example of Intermediate goods?

a)

Car sold by a dealer of second hand cars

b)

Steel and cement used to construct a flyover

c)

Fertilizers purchased by a farmer

d)

All of these

12.

Sugar purchased by a Sweet shop is an......... good, while it is a .............................good when it is purchased by a consumer

a)

Capital, final

b)

final, intermediate

c)

intermediate, final

d)

final, producer

13.

Identify the missing item in the following flow chart

a)

Depreciation

b)

Net indirect Taxes

c)

Net factor income from abroad

d)

Indirect taxes

14.

Which of the following flow chart correctly establish the treatment of 'Depreciation'?

a)
b)
c)
d)
15.

Depreciation of fixed capital assets refers to:

a)

Normal wear and tear

b)

foreseen obsolescence

c)

Normal wear & tear & foreseen obsolescence

d)

Unforeseen obsolescence

16.

Unforeseen obsolescence of fixed capital assets during production is:

a)

Consumption of fixed capital

b)

Capital loss

c)

Income loss

d)

None of the above

17.

Refrigerator purchased by a confectionery shop is an example of:

a)

Final good

b)

Intermediate Good

c)

Capital Good

d)

Both Final goods & Capital goods

18.

Which of the following is an example of Non-durable good?

a)

Milk

b)

Bread

c)

Both Milk and bread

d)

Clothes

19.

Addition to the capital stock of an economy is termed as:

a)

Investment

b)

Capital loss

c)

Consumption of Fixed capital

d)

All of these

20.

Japanese Embassy in India is a part of domestic territory of:

a)

India

b)

Japan

c)

Both India and Japan

d)

International Area