Font size
WorksheetsFEATURE OF NATIONAL INCOME AND CIRCULAR FLOW
Total questions: 25
Worksheet time: 12mins
What does national income represent?
Income of the economy as a whole
Income of individuals
Income from government taxes
Income from foreign investments
Why are only final goods and services considered in national income?
To assess government revenue
To measure individual income
To avoid double counting
To include all production costs
What is excluded from the calculation of national income?
Final goods
Net income from abroad
Depreciation costs
Intermediate goods
What does national income include regarding foreign transactions?
Only exports
Only imports
Net income from abroad
Total foreign investments
What is the financial year for national income in India?
1st April to 31st March
1st January to 31st December
1st July to 30th June
1st June to 31st May
What type of concept is national income considered?
Flow concept
Static concept
Stock concept
Fixed concept
In what terms is national income expressed?
Monetary terms
Physical units
Qualitative terms
Percentage terms
What does the term 'depreciation cost' refer to in national income?
Total production costs
Wear and tear of capital assets
Increase in asset value
Government spending
Which of the following is NOT included in national income?
Intermediate goods
Net income from abroad
Final goods
Services
What is the primary purpose of calculating national income?
To determine tax rates
To assess economic performance
To measure individual wealth
To evaluate government spending
Which of the following best describes national income?
A measure of individual earnings
A measure of total economic output
A measure of government revenue
A measure of foreign investments
What is the significance of excluding intermediate goods in national income?
To include all production
To prevent double counting
To avoid inflation
To simplify calculations
How is net income from abroad calculated?
Receipts minus payments
Exports minus imports
Total exports only
Total imports only
What does the flow concept of national income indicate?
Changes in economic output over time
Government budget deficits
Static economic conditions
Total wealth accumulation
Which of the following is a characteristic of national income?
It is expressed in physical units
It includes all types of goods
It represents the economy as a whole
It is calculated only annually
Which of the following is the consumption sector?
households
firms
foreign
government
Real flow is also known as:
nominal flow
physical flow
money flow
both nominal and physical flow
Two sector economy consists of:
households, firms
firms, foreign sector
households, government
firms, government
Which of the following is not considered a factor income?
rent
wages
gifts from abroad
profit
Land, Labour, Capital and Entrepreneurship are also known as (a)
Firms sell their resources to Households, and in exchange they are paid an income
True
False
In a closed economy, ........................... is not included?
households
firms
government
Foreign sector
Real flow refers to the flow of factor services from ....... to........ .
firms to households
households to firms
firms to government
household to government
Money flow involves exchange of:
goods and services
gifts
money
none of these
