National Income MCQs

Q. Which of the following items is not included while estimating national income by the Income method? Rent Mixed income Fixed investment Undistributed profits Answer: Fixed investment

Q. Gross domestic capital formation is the sum total of: expenditure on fixed assets gross domestic fixed capital formation and change ins stock net domestic fixed capital formation + inventory investment + depreciation both 2 and 3 Answer: both 2 and 3

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