WorksheetsNational income accounting
Total questions: 20
Worksheet time: 11mins
NATIONAL INCOME 1. Real flow is the flow of –
A. Goods only
B. Money only
C. Services only
D. Goods and services.
Injections are the macroeconomic variables which lead to a rise in the level of output in the economy. 1 Leakages are the macroeconomic variables which lead to a fall in the level of output in the economy. The circular flow of income remains stable if (a) are exactly equal to injections.
Water in a stream is a -
Stock concept
Non-economic concept
Flow concept
Hypothetical concept
Read the following statements and choose the correct alternatives among those given below:
Statement 1: Gross investment includes only inventory.
Statement 2: Gross investment shows net addition to the existing capital stock.
A. Both the statements are true
B. Both the statements are false
C. Statement 1 is true and statement 2 is false
D. Statement 2 is true and statement 1 is false
If factor cost is equal to market price, then it means that:
a. Indirect Taxes is greater than Subsidies
b. Indirect Taxes is equal to Subsidies
c. Indirect Taxes is less than Subsidies
d. none of these
What is the formula for calculating Net National Product (NNP)?
a) NNP = GDP – Depreciation
b) NNP = GNP – Depreciation
c) NNP = NI + Depreciation
d) NNP = NI – Depreciation
Net National Product equals net domestic product when :
A. factor income from abroad is greater than factor income to abroad
B. factor income from abroad is less than factor income to abroad
C. factor income from abroad is equal to factor income to abroad
D. None of these.
Net National Product at market price is greater than net National Product at factor cost when:
A. indirect tax is greater than subsidies
B. indirect tax is less than subsidies
C. indirect tax is equal to subsidies
D. None of these.
Depreciation is associated with:
A. fixed capital
B. human capital
C. working capital
D. none of these
Assertion (A): production of food grain for self-consumption is included in GDP: Reason (R): GDP is market value of final product produced within domestic Territory of a country in a financial year:
A) Assertion (A) and Reason (R) are true and R is correct explanation of A.
B) Assertion (A) and Reason (R) are true and R is not correct explanation of A.
C)Assertion (A) is false and Reason (R) is true .
D)Assertion (A) is true and Reason (R) is false.
Match the following and choose the correct option :
(I).car purchased by a travel agency A) Consumption Good
(II). sugar purchased by household (B). Intermediate Good
(III) sugarcane purchased by sugar mill (C). Capital Good
A. I (A), II (B) And III(C)
B. I (C), II (A) And III(B)
C. I (A), II (C) And III(B)
D. I (B), II (C) And III(C)
Which of the following is included in national income:
i. Vegetables obtained from kitchen garden ii. A teacher teaching his own son at his home
A. i only
C. Both i & ii
D. None of the above
Change in stock is a … (a) variable (stock/flow).
Due to „Covid 19‟ pandemic a lot of Indians sent back to India. As a result, NRIs have to come back and have been staying in India and working from home. Identify which statement regarding their status in India is true?
a) They are treated as normal residents of India.
b) Their income will be treated as factor income from abroad.
c) Their income will be treated as factor income to abroad.
d) No effect on National income of India.
Choose the correct option: Statement-1: NDP at factor cost is the income earned by the factors in the form of wages, profits, rent, interest, etc., within the domestic territory of a country or abroad.
Statement-2: If the country is not able to replace the capital stock lost through depreciation, then GDP will fall.
(a) Both Statement 1 & 2 are True
(b) Both Statement 1 & 2 are False
(c) Statement-1 is True but Statement-2 is False
(d)Statement-2 is True but Statement-1 is False
Read the following statements carefully: Statement 1: In estimating GNP, only the final products are taken into account
Statement 2: The sale and purchase of shares of existing companies are included in GNP In light of the given statements, choose the correct option from the following:
A. Statement 1 is true and Statement 2 is false.
B. Statement 1 is false and Statement 2 is true.
C. Both Statements 1 and 2 are true.
D. Both Statements 1 and 2 are false.
Ravi’s mother is a housewife. She also teaches Ravi. How will you treat this act of teaching Ravi while calculating National Income and Domestic Income?
a. It will be included in the National Income but not in Domestic Income
b. It will not be included in the National Income but in Domestic Income
c. It will be included both in the National Income and Domestic Income
d. It will neither be included in the National Income and nor in Domestic Income
If in an economy, the value of Net Factor Income from Abroad is Rs. 500 crores and the value of Factor Income to Abroad is Rs. 150 crores, identify the value of Factor Income from Abroad.
a. Rs. 250 crores
b. Rs. (-)350 crores
c. Rs. 360 crores
d. Rs. 650 crores
If factor cost is equal to market price, then it means that:
a. Indirect Taxes is greater than Subsidies
b. Indirect Taxes is equal to Subsidies
c. Indirect Taxes is less than Subsidies
d. none of these
Read the following statements carefully:
Statement 1: Gross Domestic Product (GDP) is the sum total of the gross market value of all the final goods and services added by all the sectors in the economy during a fiscal year.
Statement 2: Gross Value Added at Market Price (GVAMP) is equal to the excess of value of output over intermediate consumption. In the light of the given statements, choose the correct alternative from the following:
(a) Statement 1 is true and Statement 2 is false.
(b) Statement 1 is false and Statement 2 is true.
(c) Both Statements 1 and 2 are true.
(d) Both Statements 1 and 2 are false.
