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WorksheetsGr 12. Economics. Macro -1.National income accounting -2
Total questions: 20
Worksheet time: 16mins
Calculate the net value added at the market price of a firm:
Sale 400
Change in stock -- 20
Depreciation 30
Net indirect taxes 40
Purchase of machinery 200
Purchase of intermediate product 250
120
110
115
95
What must be added to the domestic factor income to avail national income?
NIT
Net factor Income from abroad
Depreciation
Transfer Payment
what is real GDP?
Gross domestic product calculated at current year prices
Gross domestic product calculated at constant prices
Gross domestic product at market price
Gross domestic product at factor cost
What is Nominal GNP?
GNP at constant prices
GNP less Net factor income from abroad
GNP at current prices
Real GNP
Which of the following is an example of macroeconomics?
Price determination
Consumer’s equilibrium
Producer’s equilibrium
Inflation
Which of the following is likely to raise the value of national output/income?
Rise in withdrawals matching the rise in injections
Rise in the combined value of investment, public expenditure and exports, injections unchanged
Rise in withdrawals falling short of the rise in injections
Rise in withdrawals exceeding the rise in injections
The value of national output produced by residents located within the country, before depreciation and including the influence of taxes and subsidies, is known as:
GDP at factor cost
GDP at market prices
GNP at market prices
GNP at factor cost
The value of national output produced by residents of a country, whether located at home or overseas, after depreciation and excluding the influence of taxes and subsidies, is known as:
NNP at factor cost.
NNP at market price
NDP at factor cost.
NDP at market price
Which of the following represents the difference between GNP at market prices and GDP at market prices?
The value of taxes and subsidies
Net factor income from abroad.
Depreciation
Indirect taxes
Which of the following is a widely used measure of the standard of living?
Per-capita real GDP
Percapita Nominal GDP
NNP fc
GDP mp
We use 'value added' in the output method to avoid double counting.
false
true
A nation's gross domestic product (GDP):
is the money value of the total output produced within the borders of the nation.
is the money value of the total output produced by its citizens, regardless of where they are living
can be found by summing C + I + S + X--M
is always some amount less than its C + I + G + X--M
Suppose the total market value of all final goods and services produced in a particular country in 2004 is $500 billion and the total market value of final goods and services sold is $450 billion. We can conclude that
GDP in 2004 is $450 billion
NDP in 2004 is $450 billion
GDP in 2004 is $500 billion
inventories in 2004 fell by $50 billion
Final goods and services refer to:
goods and services that are unsold and therefore added to inventories.
goods and services whose value has been adjusted for changes in the price level.
goods and services purchased by ultimate users, rather than for resale or further processing
the excess of exports over imports.
Which of the following is a final good or service?
diesel fuel bought for a delivery truck
fertilizer purchased by a farm supplier
a haircut
Chevrolet windows purchased by a General Motors assembly plant
Setup Corporation buys $100,000 of sand, rock, and cement to produce redi-mix concrete. It sells 10,000 cubic yards of concrete at $30 a cubic yard. The value added by Setup Corporation is:
$300,000.
$100,000.
$200,000
zero
GDP data are criticized as being inaccurate measures of economic welfare because
they do not take into account changes in the amount of leisure.
they do not take into account all changes in product quality
they do not take into account the adverse effects of economic activity on the environment.
of all of the above considerations.
Calculate net value added at market price of a firm: -
(Amount in thousands)
i. Value of output 400
ii. Change in stock 50
iii.Depreciation 20
iv. Net in direct taxes 25
v. Intermediate cost 200
vi. Export 10
Rs. 200 Lakhs.
Rs. 170 Lakhs.
Rs. 180 Lakhs.
Rs. 175 Lakhs.
Calculate ' net value added at factor cost' from the following data:
(Rs IN LAKHS)
i.Sale 700
ii. Purchase of machine for
installation in the factory 100
iii. Subsidies 50
iv. Change in stock. (-) 30
v. Purchase of raw material 400
vi.Rent 60
vii.Consumption of fixed capital 20
Rs. 300 Lakhs.
Rs. 250 Lakhs.
Rs. 280 Lakhs.
Rs. 370 Lakhs.
Intermediate goods are not included to calculate National Income because:
they do not have value
they are with in the boundary line of production
their value is included in final goods so they are not added to avoid the problem of double counting
none of the above
