National Income-2

17 mins read

56. The term ‘Green GNP’ emphasises-
(A) Rapid growth of GNP
(B) Increase in per capita income
(C) Economic development
(D) Sustainable development
Ans. (D)

57. The national income consists of a collection of goods and services reduced of common basis by being measured in term of money”. Who says this?
(A) Samuelson
(B) Kunznets
(C) Hicks
(D) Pigou
Ans. (C)

58. Which of the following is a better measurement of economic Development?
(A) GNP
(B) Disposable income
(C) NNP
(D) Per capita income
Ans. (D)

59. Which of the statements is correct about India’s national income?
(A) Percentage share of agriculture is higher than services
(B) Percentage share of agriculture is higher than agriculture
(C) Percentage share of services is higher than industry
(D) Percentage share of services is higher than agriculture and industry put together
Ans. (C)

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

61. Personal disposable income is
(A) Always equal to personal income
(B) Always more than personal income
(C) Equal to personal income minus indirect taxes
(D)Equal to personal income minus direct taxes
Ans. (D)

62. Net National Product of a country is-
(A) GDP minus depreciation
(B) GDP plus net income from abroad
(C) GNP minus net income from abroad
(D) GNP minus depreciation alowances
Ans. (D)

63. Which of the following is not a method of estimating National Income?
(A) Expenditure method
(B) Product method
(C) Matrix method
(D)Income method
Ans. (C)

64. National Income is the-
(A) Net National Product at market price
(B) Net National Product at factor cost
(C) Net domestic Product at factor cost
(D) Net domestic Product at factor cost
Ans. (B)

65. An individual’s actual standard of living can be assessed by-
(A) Gross National Income
(B) Net National Income
(C) Per Capital Income
(D) Disposable Personal Income
Ans. (C)

66. The total value of goods and services produced in a country during a given period is-
(A) Disposable income
(B) National income
(C) Per capital income
(D) Net national income
Ans. (B)

67. ‘Personal Income’ equals-
(A) The household sector’s income
(B) Private income minus savings of the corporate tax
(C) Personal disposable income plus miscellaneous
receipts of the Government
(D) All of the above
Ans. (B)

68. An increase in national income because of an increase in price is called-
(A) An increase in National Income in real terms
(B) An increase in national Income at constant prices
(C) An increase in money National Income
(D) An increase in National Income in base year prices
Ans. (D)

69. Net National Product in National income Accounting refers to-
(A) Gross Domestic Product – depreciation
(B) Goss Domestic Product – Depreciation
(C) Gross National Product – Depreciation
(D) Gross Nationa Product + Subsidies
Ans. (C)
n
70. A very high rise in National Income at current market prices and a low rise at constant prices reveals-
(A) The high rate of growth in the economy at the current period
(B) The increased production in the current period
(C) The improper growth of the economy
(D) The high rate of inflation prevailing in the economy
Ans. (D)

71. An increase in per capital income is not an indication of an increase in the economic welfare of the people-
(A) When such increase is the result of an increased production of comforts
(B) When such increase is the result of an increase in agricultural production
(C) When it is the result of an increase in theproduction of industrial goods
(D) When such increase is the result of intoxicants
Ans. (D)

72. Transfer payments include:
(A) Gifts received from a friend
(B) Rent free accommodation by the employer
(C) Net factor income from abroad
(D) Employee’s contribution to social security
Ans. (A)

73. National Income is generated from:
(A) Any money-making activity
(B) Any laborious activity
(C) Any profit-making activity
(D) Any productive activity
Ans. (D)

74. Per capital income=
(A) Net National Product Total Population
(B) Total Population Net National Product
(C) Gross National Product Total Population
(D) National Income Total Population
Ans. (D)

75. Which of the following is deducted from GNP to arrive at NNP?
(A) Depreciation
(B) Interest
(C) Tax
(D) Subsidy
Ans. (A)

76. Transfer payments mean-
(A) Old age pensions
(B) Unemployment compensations
(C) Social security payments
(D) All the above
Ans. (D)

77. Economic progress of a country is determined by-
(A) Increase in Per Capita Income of people of country
(B) Increase in the price of produced capital goods during the year
(C) Increased numbers of Trade Unions
(D) Fall in the general price level of a country
Ans. (A)

78. The difference between GNP and NNP equals
(A) Corporate profits
(B) Personal taxes
(C) Transfer payments
(D) depreciation
Ans. (D)

79. Which of the following is not an investment expenditure in goods and services?
(A) Expansion of the main plant of a company
(B) Purchase of a house
(C) Purchase of machinery
(D) An increase in business inventories
Ans. (B)

80. Which one of the following represents the Savings of the Private Corporate Sector?
(A) Dividends paid to shareholders
(B) Total Profits of a company
(C) Undistributed profits
(D) Excess of income over expenditure
Ans. (C)

81. Which one of the following is not a method for computing GNP?
(A) Income Approach
(B) Expenditure Approach
(C) Savings Approach
(D) Value Added Approach
Ans. (C)

82. Average propensity to consume is defined as-
(A) Aggregate consumption total population
(B) Aggregate income Aggregate consumption
(C) Change in consumption Change in income
(D) Aggregate consumption Aggeregate income
Ans. (B)

83. Which of the following relations always holds true?
(A) Income = Consumption + Investment
(B) Income = Consumption + saving
(C) Saving = Investment
(D) Income = Consumption + Saving + Investment
Ans. (B)

84. Over short period, when income rises, average propensity to consume usually-
(A) Rises
(B) Falls
(C) Remains constant
(D) Fluctuates
Ans. (B)

85. The value of investment multiplier relates to-
(A) Change in income due to change in autonomous investment.
(B) Change in autonomous investment due t change in income.
(C) Change in income due to change in consumption.
(D) Change in the income due to change in induced investment.
Ans. (D)

86. Savings rate is relatively low in developed economics because of-
(A) Low Per Capita Income
(B) Welfare programmes
(C) Liquidity/Borrowing constraint
(D) High interest rate
Ans. (D)

87. The relationship between the rate of interest and level of consumption was first visualized by-
(A) Amartya K.Sen
(B) Milton Friedman
(C) Irving Fisher
(D) James Duesenberry
Ans. (C)

88. The hypothesis that rapid growth of per capita income will be associated with a reduction in poverty is called-
(A) Trickle down Hypothesis
(B) Trickle up hypothesis
(C) U shaped hypothesis
(D) Poverty estimation hypothesis
Ans. (A)

89. Gross National product – Depreciation Allowance=?
(A) Per Capital Income
(B) Gross Domestic Product
(C) Personal Income
(D) Net National Product
Ans. (D)

90. Which of the following best indicates economic growth of a Nation?
(A) Agriculture income
(B) Per capita income
(C) Gross industrial production
(D) Inflation
Ans. (B)

91. Sectoral distribution of GDP index measures____
(A) Agricultural development of a country
(B) Economic development of a country
(C) Social development of a country
(D) Socio-economic development of a country
Ans. (A)

92. If People’s income of a country is denoted in a curved line space that it has increased, then what does itdenote?
(A) The income is increasing
(B) The income is decreasing
(C) Dissimilarity is decreasing in income distribution
(D) Dissimilarity in income distribution is increasing
Ans. (C)

93. Capital formation in an economy depends on-
(A) Total Income
(B) total demand
(C) Total savings
(D) Total production
Ans. (C)

94. The data collection for national income estimation is conduced in India by_
(A) The Finance Ministry of the Government of India
(B) The RBI
(C) The NSSO (National Sample Survey Organi-sation)
(D) None of these
Ans. (C)

95. Sectoral distribution of GDP index measures______
(A) Agriculture development of a country
(B) Economic development of a country
(C) Social development of a country
(D) Socio-Economic development of a country
Ans. (B)

96. Saving is that portion of money income that is __________.
(A) Spent for development of Industries
(B) Not spent on consumption
(C) Spent on health and education
(D) Spent for consumer durables
Ans. (B)

97. An indifference curve measures the same level of _________
(A) Output from two factors
(B) Satisfaction from two commodities
(C) Satisfaction from Income and Capital
(D) Satisfaction from expenditure and savings
Ans. (B)

98. An indifference curve measures level of satisfaction derived from different combinations of commodity X and Y.
(A) Same
(B) Higher
(C) Lower
(D) Minimum
Ans. (A)

99. Value of Total Goods and Services produced in a country is its _____________ .
(A) Gross Domestic Product
(B) Gross Revenue Income
(C) Total Goods Revenue
(D) Total Income
Ans. (A)

100. If hiring an extra worker increases a factory’s output from 1000 to 1200 units per day but the factory has to reduce the price of its product from Rs. 25 to Rs. 24 per unit to sell the
additional output, the marginal revenue product of the last worker is
(A) Rs. 3800
(B) Rs. 200
(C) Rs. 100
(D) Rs. 4000
Ans. (A)

101. Calculate a country’s GDP if for the year consumer spending is $400 mi ll ion, government spending is $150 investment by businesses is $80 million, exports are $35 million and imports are $40 million.
(A) $ 625 million
(B) $ 465 million
(C) $ 475 million
(D) $ 635 million
Ans. (A)

102. If for the year a country’s GDP was $990 million, consumer spending was $630 million,
investment by businesses was $110 million, exports were $55 million and imports were $45 million, calculate government spending?
(A) $260 million
(B) $240 million
(C) $480 million
(D) $460 million
Ans. (B)

103. If for the year a country’s GDP was $ 1315 million, consumer spending was $900 million, investment by businesses was $180 million, exports were $85 million and imports were $100 million, calculate government spending?
(A) $220 million
(B) $250 million
(C) $580 million
(D) $610 million
Ans. (B)

104. Calculate a country’s GDP if for the year, consumer spending is $900 million, government spending is $250 million, investment by businesses is $180 million, exports are $85 million and imports are $100 million.
(A) $1345 million
(B) $1315 million
(C) $955 million
(D) $815 million
Ans. (B)

105. Which of the following measures will not increase a nation’s wealth?
(A) Investing in new companies
(B) Increasing efficiency of factories
(C) Converting grasslands into orchards
(D) By redistributing taxes as subsidies
Ans. (D)

106. In 2015, the nominal rate of interest in a country was 5.5% and the inflation rate then was 2.5%. So real rate of interest in 2015 was_________.
(A) 8 percent
(B) 2.2 percent
(C) 3 percent
(D) 13.75 percent
Ans. (C)

107. Which of the following equation is/are INCORRECT?
I. NI = NDP + Net Foreign Income
II. GNP = GDP + Net Foreign Income
III.NDP = GNP – Depreciation
(A) Only (I ) and (II)
(B) Only (III)
(C) Only (II) and (III)
(D) Only (II)
Ans. (B)

108. Which of the following is called GDP Deflator?
(A) Ratio of nominal to real GDP
(B) Ratio of nominal to real GNP
(C) Ratio of nominal to real CPI
(D) Ratio of real to nominal GNP
Ans. (A)

109. Which organisation monitors the banks in actually maintaining cash balance?
(A) State Bank of India
(B) Reserve Bank of India
(C) Grameen Bank of India
(D) None of these
Ans. (B)

110. From which of the following, is the GDP of a country not derived from?
(A) Agricultural sector
(B) Industrial sector
(C) International sector
(D) Service sector
Ans. (C)

111. GDP – indirect taxes + subsidies = ______
(A) NNP at factor cost
(B) GDP at factor cost
(C) GNP
(D) Personal Income
Ans. (B)

112. GNP – depreciation allowances = ______
(A) National Income
(B) NDP
(C) NNP
(D) GNP
Ans. (C)

113. What is the full form of GNI?
(A) Gross National Interest
(B) Gross National Income
(C) Gross Net Interest
(D) Gross Net Income
Ans. (B)

114. Which organisation measures Gross Domestic Product in India?
(A) Reserve Bank of India
(B) NITI Aayog
(C) State Bank of India
(D)Central Statistics Office
Ans. (D)

406 Economics Rakesh Yadav Readers Publication Pvt. Ltd. 115. If exports equal imports then, which of the following relations will be true?
(A) GDP = GNP
(B) GDP > GNP
(C) GDP < GNP (D) None of these Ans. (A) 116. What is the full form of NNP? (A) Normal Net Production (B) Net National Product (C) Normal National Produce (D) Net Normal Produce Ans. (B) 117. What is Disposable Personal Income? (A) Personal Income + Subsidies (B) Personal Income - Subsidies (C) Personal Income - Direct Taxes (D) Personal Income - Indirect Taxes Ans. (C)

Hi Everyone, Exam Syllabus Portal provide all central govt and state govt exam syllabus pdf . Where you can download also PDF For this .

Leave a Reply

Your email address will not be published.

Latest from Blog

Miscellaneous-3

62. A firm is in equilibrium when its– (A) Marginal cost equals the marginal revenue (B)

Miscellaneous-2

33. Economic growth is dependent mainly on– (A) Level of consumption (B) Price stability (C) Level

Miscellaneous-1

1. Multinational firm is– (A) A company started by foreign governments (B) A single company established

Schemes

1. Oilseeds production Programme (OPP) was started in– (A) 1986 (B) 1987 (C) 1988 (D) 1990