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circular flow of income

Total questions: 31

Worksheet time: 16mins

Name
Class
Date
1.

Which of the following is a phase of Circular flow?

a)

Generation phase

b)

Distribution phase

c)

Disposition phase

d)

All of these

2.

Which of the following is not an example of flow variable?

a)

Number of births during a year

b)

National wealth

c)

National income

d)

wheat produced during a year

3.

Which of the following is not considered a factor income?

a)

rent

b)

wages

c)

gifts from abroad

d)

profit

4.

Which of the following is not considered a factor income?

a)

rent

b)

wages

c)

gifts from abroad

d)

profit

5.

Two sector economy consists of:

a)

households, firms

b)

firms, foreign sector

c)

households, government

d)

firms, government

6.

Stock variable is defined as a variable which is:

a)

measured over a period of time

b)

measured at a particular point of time

c)

cannot be measured

d)

None of these

7.

Losses are classified as:

a)

stock variable

b)

flow variable

c)

either stock or flow

d)

neither stock nor flow

8.

Real flow is also known as:

a)

nominal flow

b)

physical flow

c)

money flow

d)

both nominal and physical flow

9.

Which of the following is the consumption sector?

a)

households

b)

firms

c)

foreign

d)

government

10.

Money flow involves exchange of:

a)

goods and services

b)

gifts

c)

money

d)

none of these

11.

Real flow refers to the flow of factor services from ....... to........ .

a)

firms to households

b)

households to firms

c)

firms to government

d)

household to government

12.

In a closed economy, ........................... is not included?

a)

households

b)

firms

c)

government

d)

Foreign sector

13.

Which of the following is not a flow?

a)

Capital

b)

Income

c)

Investment

d)

Depreciation

14.

Which of the following is not a flow?

a)

Capital

b)

Income

c)

Investment

d)

Depreciation

15.

which of the following is a stock?

a)

wealth

b)

saving

c)

exports

d)

profits

16.

Which of the following diagram represents real flow?

a)
b)
c)
d)
17.

Circular flow of income is correctly represented in the diagram:

a)
b)
c)
d)
18.

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

19.

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.

20.

Which of the following is not in intermediate goods for a farmer?

a)

Seeds

b)

Fertilizers

c)

Tractor

d)

All of these.

21.

Which of the following is not a normal resident of a country?

a)

An Indian working in WHO situated in India.

b)

An American tourist in India.

c)

An Indian working in American Embassy

d)

A branch of WHO in India.

22.

Which of the following is a final expenditure?

a)

Computer purchased by a school.

b)

Scooter purchased by a dealer.

c)

Vegetable purchased by a restaurant.

d)

Milk purchased by a tea-maker.

23.

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

24.

Income earned through entrepreneurship is called:

a)

Profit

b)

Loss

c)

Operating Surplus

d)

Royalty

25.

Which of the following is an example of macroeconomics?

a)

Saving of an individual

b)

Consumption of a household

c)

Price level of a firm

d)

Aggregate demand of an economy

26.

Intermediate goods are those goods:

a)

Which have yet not crossed the boundary line of production.

b)

Which are purchased by one firm from the other firm for resale.

c)

Which are not included in the estimation of National Product.

d)

All of these.

27.

Which of the following is intermediate product?

a)

Pulses purchased by consumers

b)

Machine purchased by a firm

c)

Wheat used by flour mill

d)

Wheat used by household.

28.

Income earned within the economic territory of a country is called

a)

GDP

b)

GNP

c)

NNDI

d)

Private Income

29.

Which of the followings is a final good?

a)

Raw materials used by a firm

b)

Tea brewing machine purchased by a restaurant

c)

Car purchased by a car dealer

d)

An Apartment purchased for resale

30.

Japanese embassy in India is a part of domestic territory of (a)  

31.

Transfer income is:

a)

One side payment.

b)

Factor payment.

c)

Factor income.

d)

Mixed Income