September 2022

Q. Value-added refers to:- production of durable goods output – intermediate consumption production of non-durable goods expenditure on intermediate goods Answer: output – intermediate consumption

Q. Value added method measures the contribution of which of the following within the domestic territory of a country? Household consumers The producing enterprises owned by residents of the country The producing enterprises owned by the non-residents of the country Both 2 and 3 Answer: Both 2 and 3

Q. own account production of goods is included in national income because: goods are tangible their valuation is possible goods are more productive than services None of these Answer: their valuation is possible

Q. Household inventory is: not included in national income a stock concept both 1 and 2 None of these Answer: both 1 and 2

Q. The impact of an externality is: Positive Negative either positive or negative neither positive nor negative Answer: either positive or negative

Q. GDP Deflator = Real income/Nominal income * 100 Nominal Income/Real Income * 100 Real Income/Population * 100 None of these Answer: Nominal Income/Real Income * 100

Q. Which of the following makes GDP an inappropriate index of welfare? Non-monetary trAnswer:actions Externalities Composition and distribution of GDP All of these Answer: All of these

Q. National income refers to: factor incomes only income of only normal residents of the country the sum total of domestic income and net factor income from abroad all of these Answer: all of these

Q. National income (NNP at FC) is equal to: GNP at FC + depreciation GNP at FC – depreciation NNP at mp – Net indirect taxes both 2) and 3) Answer: both 2) and 3)

Q. GNP at market price is measured as: GDP at market price – Depreciation GDP at market price + Net factor income from abroad GNP at market price + subsidies NDP at factor cost + Net factor income from abroad Answer: GDP at market price + Net factor income from abroad