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NATIONAL INCOME & RELATED AGGREGATES

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

National income does not include_____

a)

Wages and salaries

b)

Rent and Royalty

c)

Student scholarship

d)

Corporate Tax

2.

Product method of calculating national income is also known as:

a)

Income method

b)

Value added method

c)

Expenditure method

d)

Distribution method

3.

Transfer payments refer to payments, which are made:

a)

Without any exchange of goods and services

b)

To workers on transfer from one job to another

c)

As compensation to employees

d)

None

4.

National Income differs from Net National Product at market price by the amount of:

a)

Current transfers from rest of the world

b)

Net Indirect Taxes

c)

National debt interest

d)

it does not differ

5.

GNP(MP) = GDP(MP) + ________ :

a)

Depreciation

b)

Indirect taxes

c)

NFIA

d)

Subsidy

6.

Net national product at factor cost is also known as:

a)

Net Domestic product

b)

Gross National product

c)

National Income

d)

Personal Income

7.

In a circular flow of income, we have:

a)

Production

b)

Distribution

c)

Disposition

d)

All above

8.

A person or an institution who normally resides in country and whose economic interest lies in that country is known as:

a)

Normal Resident of a country

b)

Non- resident of a country

c)

Both (a) and (b)

d)

None of these.

9.

Transfer income is:

a)

One side payment.

b)

Factor payment.

c)

Factor income.

d)

Mixed Income

10.

A payment made periodically to a landlord for the use of property for a specific period of time is called:

a)

Rent

b)

Profit

c)

Interest

d)

Royalty

11.

State the formula of National Income at Factor Cost

a)

National Income at Market Price - Indirect Tax

b)

National Income at Market Price + Indirect Tax

c)

National Income at Market Price - Net Indirect Tax

d)

National Income at Market Price ×\times Indirect Tax

12.

Which of the following item is not a component of profit?

a)

Dividend

b)

Corporate Savings

c)

Corporation Tax

d)

Rent

13.

Which of the following item is not a component of 'Operating Surplus'?

a)

Royalty

b)

Bonus

c)

Interest

d)

Rent.

14.

The tax which is imposed on the profit of corporate is known as:

a)

Income Tax

b)

Corporate Tax

c)

Sales Tax

d)

Excise duty

15.

1.How many approaches in calculating national income?

a)

4

b)

3

c)

2

d)

1

16.

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

17.

Which of the following makes GDP an inappropriate index of welfare?

a)

a) non-monetary transaction

b)

b) externalities

c)

c) composition and distribution of GDP

d)

all of these

18.

Real national income means:

a)

a) national income at current price

b)

b) national income at factor price

c)

c) national income at constant price

d)

d) national income at average price of past 10 years

19.

The impact of externality is:

a)

a) positive

b)

b) negative

c)

c) either positive or negative

d)

d) neither positive nor negative

20.

Items not included in the estimation of national income:

a)

a) sale of second hand goods

b)

b) value of intermediate goods

c)

c) sale of shares and bonds

d)

all of these