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ECONOMICS QUIZ

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

TrEatment of BONUS paid to employees in national income/ domestic income

a)

Not included as it is transfer payment

b)

Included as it is part of compensation of employees

c)

Included as it is within domestic territory

d)

None of these

2.

Treatment of purchase of refrigerator by a firm for own use in NI / DI

a)

Included as it a final producer capital good

b)

Not included as it is a final consumer good

c)

Included as it is a resident firm

d)

None of these

3.

Treatment of purchase of chalks by school in domestic/ national income

a)

Not included as it is an intermediate good

b)

Included as it is a final good

c)

Not included as it is a consumer good

d)

None of these

4.

Treatment of profits earned by branches of INDIAN bank in other country in domestic income of India

a)

Included as it is resident bank

b)

Not included as bank is not in domestic territory of India

c)

Included as profit is part of operating surplus

d)

None of these

5.

Treatment of salaries of Indian working in American embassy in India

a)

Included in national income as indian is normal resident of India

b)

Not included in domestic territory as American embassy is not part of domestic territory of India

c)

Included as salaries is part of Compensation of employees

d)

None of the these

6.

scholarship given to a student is not included because:-

a)

It is a intermediate cost

b)

It is a service for self consumption

c)

It is a transfer payment

d)

None of these

7.

Treatment of interest on loan taken by an individual for car

a)

Included as it is meant for production

b)

Included because it is final expenditure

c)

Not included as it is meant for consumption purpose

d)

None of these

8.

Treatment of school fees paid by student

a)

included as it is part of private final consumption exp

b)

Included as it is investment exp

c)

Not included as it is a transfer payment

d)

None of these

9.

Treatment of profits of a flight of spice jet between new york and london in domestic territory

a)

Included as it is within domestic territory of india

b)

Not included as this flight is not part of domestic territory of India

c)

none of these

10.

Treatment of expenditure done on adding floor to a house in NI/ DI

a)

Not included as it is intermediate cost

b)

Included as it is part of gross domestic capital formation

c)

Included as it within domestic territory of country

d)

None if these