National Income MCQs

Q. Which of the following is an example of an intermediate goods? Car sold by a dealer of second-hand cars Steel and Cement used to construct a flyover Fertilizers purchased by a farmer All of the above Answer: All of the above

Q. Market price and Factor cost will be equal when there are: No direct tax No Indirect tax No subsidy No indirect tax and no subsidy Answer: No indirect tax and no subsidy

Q. Net factor income from abroad is: Exports menu Imports Visible Exports minus Visible Imports factor incomes received from abroad minus factor income paid abroad Factor incomes received from abroad Answer: factor incomes received from abroad minus factor income paid abroad

Q. Final goods refer to those goods which are used either fo_______or for______. Consumption, investment Consumption, resale Resale, investment Resale, further production Answer: Consumption, investment

Q. Which one of the following is not an example of final goods? Chalk, dusters, etc. purchased by a school seeds used by the farmers milk used by a sweets shop All of the above Answer: All of the above

Q. Which of the following are covered under the domestic territory of India? state bank of India in London Google office in India Office of Tata Motors in Australia Russian Embassy in India Answer: Google office in India

Q. The flow of goods and services and factors of production across different sectors in a barter economy is known as: Circular Flow Real Flow Monetary Flow Capital Flow Answer: Real Flow

Q. Which one of the following is an intermediate product? Purchase of oil by consumers Machine purchased by firms Wheat used by a flour mills Wheat used by households Answer: Wheat used by a flour mills

Q. In a closed economy,………is not included. Households Firms Government Foreign sector Answer: Foreign sector

Q. Real flow refers to the flow of factor services from…..to……. Firms to households Households to firms Firms to government Households to government Answer: Households to firms