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National Income MCQ and Answer
1. The average income of the country is
(A) Per capita income
(B) Disposable income
(C) Inflation rate
(D) Real national income
Answer: Per capita income
2. What base year is used to calculate per capita income in India?
(A) 2004-05
(B) 2011-12
(C) 2001-2002
(D) 2014-15
Answer: 2011-12
3. Which the state of India currently has the highest Per Capita Income?
(A) Goa
(B) Delhi
(C) Maharashtra
(D) Punjab
Answer: Maharashtra
4. At present, how much is India’s Per Capita Income (based on market prices)?
(A) Rs.72350
(B) Rs.93293
(C) Rs.85261
(D) Rs.103007
Answer: Rs.103007
5. How much does the primary sector contribute to India’s GDP?
(A) 26%
(B) 20%
(C) 53%
(D) 14%
Answer: 20%
6. Which sector contributes the most to India’s economy?
(A) Service sector
(B) Manufacturing sector
(C) Agricultural sector
(D) Small scale industries
Answer: Service sector
7. If the contribution of the agricultural sector is decreasing in a country’s economy, then what conclusion can be drawn?
(A) The country is growing in the direction of being a developed nation
(B) The country is moving towards becoming a developing nation
(C) The country is moving towards becoming a less developed nation
(D) The economic growth rate of the country has stopped
Answer: The country is growing in the direction of being a developed nation
8. What percentage of Indians pay income tax?
(A) 15%
(B) 20%
(C) 9%
(D) 3%
Answer: 3%
9. Which is not added in the calculation of the national income of India?
(A) The value of goods and services
(B) The sold value of the old fridge
(C) Services rendered by the housewives
(D) Both b & c
Answer: Both b & c
10. Which Indian state gives the highest income tax collection to the Government of India?
(A) Uttar Pradesh
(B) Kerala
(C) Maharashtra
(D) Goa
Answer: Maharashtra
11. The financial year in India is
(A) April 1 to March 31
(B) January 1 to December 31
(C) March 1 to April 30
(D) March 16 to March 15
Answer: April 1 to March 31
12. Which Ministry is responsible for calculating GDP in India?
(A) Ministry of Finance
(B) Ministry of Commerce and Industry
(C) Ministry of Central Statistical and Program Implementation
(D) Ministry of Consumer Affairs
Answer: Ministry of Central Statistical and Program Implementation
13. The net value of GDP after deducting depreciation from GDP is
(A) Net national product
(B) Net domestic product
(C) Gross national product
(D) Disposable income
Answer: Net domestic product
14. When depreciation is deducted from GNP, the net value is
(A) Net national product
(B) Net domestic product
(C) Gross national product
(D) Disposable income
Answer: Net national product
15. The value of national income adjusted for inflation is called
(A) Per capita income
(B) Disposable income
(C) Inflation rate
(D) Real national income
Answer: Real national income
Previous Years Quiz and Answers on National Income
| Questions | Answers |
| What is national income | National Income is the monetary value of all final goods and services that are produced by the residents of the country. |
| There are _____ methods of measuring national income | There are 3 methods to calculate National Income |
| The national income is equal to | Sum total of factor incomes |
| National income does not include | The sale of second-hand goods is not included in the national income. |
| National income is estimated by | National Statistical Office (NSO) |
| National income is expressed on | Sum total of factor incomes |
| National income is which concept | Sum total of factor incomes |
| Which of the following is included in the national income | National income thus calculated represents the aggregate income of the owners of the factors of production; it is the sum of wages, salaries, profits, interest, dividends, rent, and so on. |
| Which shows the equilibrium of national income | Saving = investment |
Related MCQs and Answers
FAQs on National Income
What is the national income formula?
National Income = C (household consumption) + G (government expenditure) + I (investment expense) + NX (net exports).
What is the national income and how it is calculated?
The national income is calculated by adding the total output of the companies in the economy. If you add up the total profit and loss, if all these companies belong to you, your income will be called national income or GDP. Based on this calculation, we can see which sectors contribute more than others to the total output.
What is a national income example?
National income is the value of goods and services produced by a country during a financial year. Therefore, it can be said that national income means how much money a country earns in a particular period of time.
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