National Income-1

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1.The Expenditure on advertisement and public relation by an enterprise is a part of its-
(A) Consumption of fixed capital
(B) Final consumption Expenditure
(C) Intermediate Consumption
(D) Fined Capital
Ans. (C)

2. If a country produces consumer goods only and nothing else, then-
(A) Standard of living will be highest
(B) The country have certain amount of good
(C) The country will soon become poor if external trade will not happen
(D) The country will gradually become rich if external trade will not happen
Ans. (C)

3. The Income of Indians working abroad is-
(A) Domestic Income of India
(B) Income earned from abroad
(C) Net domestic product of India
(D) Gross domestic product of India.
Ans. (B)

4. When increase in income the increase in ratio between income & expenditure changes–
(A) In same ratio
(B) Ratio less than 1
(C) Ratio more than one
(D) None
Ans. (B)

5. The Census of Indian agriculture is done by–
(A) Production Method
(B) Income Method
(C) Expenditure Method
(D) Consumption Method
Ans. (A)

6. The First Income Committee was established in–
(A) 1948
(B) 1949
(C) 1950
(D) 1951
Ans. (B)

7. Depreciation is equal to–
(A) GNP – NNP
(B) NNP – GNP
(C) GNP – Personal Income
(D) Personal Income – Personal Taxes
Ans. (A)

8. Other name of Net National Product at market price-
(A) National Income
(B) Gross Domestic Production
(C) Personal Income
(D) Per Capital Income
Ans. (A)

9. A rising per Capita Income will indicate a better welfare if it is accompanied by –
(A) Unchanged Income distribution overall.
(B) Changed Income distribution in favour of rich.
(C) Changed Income distribution in favour of poor.
(D) Changed Income distribution in favour of Industrial Labour.
Ans. (C)

10. Income and consumption are–
(A) Inversely Related
(B) Directly Related
(C) Partially Related
(D) Unrelated
Ans. (B)

11. Which one of the following is not a method of measurement of National Income?
(A) Value Added Method
(B) Income Method
(C) Investment Method
(D) Expenditure Method
Ans. (C)

12. Gross Profit means–
(A) Total investment over total savings
(B) Changes in methods of production
(C) Changes in the form of business organisation
(D) Total receipts over total expenditure.
Ans. (D)

13. Per Capita Income is equal to–
(A) National Income Total Population of the country
(B) National Income + Population
(C) National Income – Population
(D) National Income x Population
Ans. (A)

14. Which one of the following is the most appropriate reason for inequalities in income?
(A) Racial factors
(B) Lack of opportunities
(C) Inheritance from family environment
(D) Differences in ability
Ans. (B)

15. National Income include–
(A) Financial help to earthquake victims
(B) Pocket money of a child
(C) Winning of a lottery prize
(D) Construction of a new house
Ans. (D)

16. Which of the following is not included in the National Income?
(A) Imputed rent of owner-occupied houses
(B) Government expenditure on making new bridges
(C) Winning a lottery
(D) Commission paid to an agent for sale of house
Ans. (C)

17. What does National Income mean?
(A) The total value of all goods and services produced in the country during a period of 1 year
(B) The total value of all stocks and shares in the country during a period of 1 year
(C) The total value of all capital goods produced in the country during a period of 1 year
(D) The total value of all consumer goods produced in the country during a period of 1 year
Ans. (A)

18. The difference between the GNP and the NNP is equal to the–
(A) Consumer expenditure on durable goods
(B) Direct tax revenue
(C) Indirect tax revenue
(D) Capital depreciation
Ans. (D)

19. The National Income of a country is–
(A) Government annual revenue
(B) Total productive income
(C) Surplus of the public sector enterprise
(D) Export and Import
Ans. (B)

20. The method of calculating the National Income by the product method is otherwise known as–
(A) Income method
(B) Value added method
(C) Expenditure method
(D) Net output method
Ans. (B)

21. While estimating National Income which of the following is not taken into account?
(A) Services of a teacher
(B) Services of a doctor
(C) Services of a housewife
(D) Services of a maid servant
Ans. (C)

22. Gross National Product is the money measure of–
(A) All tangible goods produced in a country
(B) Final goods and services produced in the economy
(C) Services generated annually in the economy
(D) All tangible goods available in the economy
Ans. (B)

23. Gross National Product means–
(A) Gross value of finished goods
(B) Money values of the total national production for any given period
(C) Gross value of raw materials
(D) Money value of inputs and outputs
Ans. (B)

24. Aggregate net value of the output in 1 year is the–
(A) National Income at factor cost
(B) Gross Domestic Product at market prices
(C) Net National Product at market prices
(D) Gross National Product at market prices
Ans. (C)

25. National Income accounting is the study of the ncome and expenditure of the entire–
(A) Family
(B) State
(C) Economy
(D) Organisation
Ans. (C)

26. Fish catch by indian fisher- men in the international waters are part of the GDP of–
(A) Sri Lanka
(B) India and Sri Lanka
(C) India
(D) India and Indonesia
Ans. (C)

27. In a highly developed country the relative
contribution of agriculture to GDP is–
(A) Relative high (B) Relatively low
(C) Same as that of other sectors
(D) Zero
Ans. (B)

28. To achieve high rates of growth of national Government output, the economy has to-
(A) Reduce the rate of growth of population
(B) Borrow foreign capital
(C) Step up the rate of savings
(D) Increase the rate of investment and reduce
the capital output ratio
Ans. (D)

29. The national income of a country is
(A) Government annual revenue
(B) Total productive income
(C) Surplus of the public sector enterprise
(D) Export-(Loan) import
Ans. (B)

30. A firm sells new shares worth Rs. 1000 directly to individuals. This transaction will cause
(A) Groos National product to rise by Rs. 100
(B) Gross Domestic product to rise by Rs. 1000
(C) National Income to rise by Rs. 1000
(D) No impact on Gross National product
Ans. (D)

31. What is the main function of Central Statistical Organsiation (CSO)?
(A) Determination of Money supply
(B) Collection of estimates of national income
(C) Collection of detail data regarding empolyment
(D) Price Determination
Ans. (B)

32. India’s biggest nationalised enterprise today
(A) The Indian Railways
(B) The Indian Commercial Banking System
(C) The Indian Power Sector
(D) The Indian Telecommu-nication System
Ans. (A)

33. Per capita income is obtained by dividing National Income by
(A) Total population of the country
(B) Totol working population
(C) Area of the country
(D) Volume of capital used
Ans. (A)

34. GDP at factor Cost is-
(A) GDP minus indirect taxes plus subsidies
(B) GDP minus depreciation allowances
(C) NNP plus depreciation allowances
(D) GDP minus subsidies plus indirect taxes
Ans. (A)

35. Gross Domestic Product is defined as the value of all-
(A) Goods produced in an economy in a year
(B) Goods and services produced in an economy in a year
(C) Final goods produced in an economy in a year
(D) Final goods and services produced in a economy in a year
Ans. (D)

36. The largest share of India’s national income originates in the-
(A) Primary sector
(B) Secondary sector
(C) Tertiary sector
(D) Any of the above
Ans. (A)

37. The preparation of National Income Estimates is the responsibility of the
(A) Planning Commission
(B) National Development Council
(C) National Sample Survey Organsiation
(D) Central Statistical Organsiation
Ans. (D)

1. Advisory to statistical agencies
2. Preparing and publishing national accounts statistics
3. Conducting economic census
38. Which of the following is not a part of national income?
(A) Wages and Salaries
(B) Profits
(C) Rent
(D) Interest on national debt
Ans. (D)

39. National Income at factor cost is equal to-
(A) Net National Product – Indirect taxes + Subsidies
(B) Net National Product – Direct taxes + Subsidies
(C) Gross National Product – Depreciation charges
(D) Net National Product + Net Income from abroad
Ans. (A)

40. Who among the following Indian Economists has done pioneering work on National Income?
(A) Jagdish Bhagwati
(B) M.L. Seth
(C) Amartya Sen
(D) V.K.R.V. Rao
Ans.(D)

41. Who had estimated National Income in India first?
(A) V.K.R.V. Rao
(B) Dadabhai Naoroji
(C) R.C. Dutt
(D) D.R. Gadgil
Ans. (B)

42. While computing national income estimates, which of the following is required to be observed?
(A) The value of exports to be added and the value of imports to be substracted
(B) The value of exports to be subtracted and the value of imports to be added
(C) The value of the both exports and imports to be added
(D) The value of both exports and imports to be subtracted
Ans. (A)

43. Which of the following is deducted fron NNP to arrive at NI?
(A) Indirect Tax
(B) Capital consumption allowance
(C) Subsidy
(D) Interest
Ans. (A)

44. Which one of the following is not included while estimating national income through income method?
(A) Rent
(B) Mixed incomes
(C) Pension
(D) Undistributed profits
Ans. (D)

45. The largest component of National income in india is
(A) Service Sector
(B) Agriculture
(C) Industrial Sector
(D) Trade Sector
Ans. (A)

46. The main difference between Gross Domestic Product (GDP) and Gross National Product (GNP) is-
(A) Transfer payments
(B) Net foreign income from abroad
(C) Capital consumption allowance
(D) Capital gains
Ans. (B)

47. Gross domestic product is a measure of-
(A) A country international economic activities
(B) A country’s domestic economic activities
(C) A country’s financial position
(D)A country’s industrial output
Ans. (B)

48. Which of the following method is not used in determining National income of a country?
(A) Income Method
(B) Product Method
(C) Expenditure Method
(D) Investment Method
Ans. (D)

49. The profits of Indian banks operating in foreign countries are a part of-
(A) Income from entrepreneurship earned from abroad
(B) Domestic factor income of india
(C) Profits of the enterprises working in domestic territory of India
(D) Operating surplus of the banks located in india
Ans. (A)

50. National Income can be calculated in all except one of the following ways-
(A) Sum of all expenditures
(B) Sum of all outputs
(C) Sum of all savings
(D) Sum of all incomes
Ans. (C)

51. The method of calculating the national income by the product method is otherwise known as:
(A) Income method
(B) Value added method
(C) Expenditure method
(D) Net output method
Ans. (D)

52. The best measure to assess a country economic growth is-
(A) Per capita income at constant prices
(B) Per capita income at current prices
(C) Gross domestic product at current prices
(D)Gross national product at current prices
Ans. (A)

53. Which of the following is not required while computing Gross National Product (GNP)?
(A) Net foreign investment
(B) Private investment
(C) Per capita income of citizens
(D) Purchase of goods by government
Ans. (C)

54. The sum total of incomes recieved for the services of labour, land or capital in a country is called-
(A) Gross domestic product
(B) National income
(C) Gross domestic income
(D) Gross national income
Ans. (C)

55. In calculating National income which of the following is included?
(A) Services of housewives
(B) Pensions
(C) Income of smugglers
(D) Income of watchmen
Ans. (D)

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