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A Brief Description About National Income MCQ PDF
| Topic: | National Income MCQ |
| No of Questions: | 100+ |
| Question type: | Multiple Choice Question |
| Question Format: | Text & PDF |
| PDF Size: | 1 MB |
| Download PDF: | Attached Below |
National Income MCQ and Answer
Q1. Which method is adopted in measuring National Income?
(a) Production Method
(b) Income Method
(c) Expenditure Method
(d) All of these
Answer: (d) All of these
Q2. Which sector is included in an economy?
(a) Primary
(b) Secondary
(c) Tertiary
(d) All of these
Answer: (d) All of these
Q3. Which of the following is not included in the calculation of Gross National Product?
(a) Purchase and Sale of Old commodities
(b) Intermediate Commodities
(c) (a) and (b) both
(d) None of the above
Answer: (c) (a) and (b) both
Q4. Which one of the following services are included in the Secondary Sector?
(a) Insurance
(b) Manufacturing
(c) Trade
(d) Banking
Answer: (b) Manufacturing
Q5. Which one is included in Primary Sector?
(a) Land
(b) Forest
(c) Mining
(d) All these
Answer: (d) All these
Q6. To include the value of goods or services more than one time while calculating National Income is called :
(a) Single Counting
(b) Double Counting
(c) Multiple Counting
(d) None of these
Answer: (b) Double Counting
Q7. Which one is a component of profit?
(a) Dividend
(b) Undistributed Profit
(c) Corporate Profit Tax
(d) All of these
Answer: (d) All of these
Q8. Which one is included in National Income?
(a) Transfer Earnings
(b) Sale proceeds of Shares and Bonds
(c) Black Money
(d) None of the Above
Answer: (d) None of the Above
Q9. Which one is included in the calculation of National Income?
(a) New Final Goods and Services
(b) Earned Income of Indian Companies in Abroad
(c) Expenses made by Foreign Tourists in the country
(d) All the above
Answer: (d) All the above
Q10. Which one is the limitation of Macro Economics?
(a) Collective Economic Paradox
(b) Ignores Individual Units
(c) Both (a) and (b)
(d) None of these
Answer: (c) Both (a) and (b)
Q11. Macro-economics is the study of:
(a) Principle or Theories of national income
(b) Consumer’s theory
(c) Production theory
(d) None of these.
Answer: (a) Principle or Theories of national income
Q12. Out of the following which is not a flow:
(a) Capital
(b) Income
(c) Investment
(d) Depreciation.
Answer: (a) Capital
Q13. From the following which method is used for measuring national income:
(a) Production method
(b) Income method
(c) Expenditure method
(d) All of the above.
Answer: (d) All of the above.
Q14. Which of the following is included in the primary sector:
(a) Land
(b) Forest
(c) Mines
(d) All of the above.
Answer: (d) All of the above
Q15. Total national income divided by total population is known as:
(a) Private income
(b) Personal income
(c) Personal spendable income
(d) Per capita income.
Answer: (d) Per capita income
Q16. Production enterprises are divided in:
(a) Two sectors
(b) Three sectors
(c) Four sectors
(d) Five sectors.
Answer: (b) Three sectors
Q17. Who had made the first attempt at National Income Accounting?
(A) Prof. D.R.Gadgill
(B) Simon Kuznets
(C) J.M.Keynes
(D) Gregory King
Answer: (D) Gregory King
Q18. Calculation of National Income at Market Prices is known as _________
(A) Money income
(B) Real income
(C) Non-monetary income
(D) None of these
Answer: (A) Money income
Q19. Accounting of National Income at constant prices is known as ________
(A) Money income
(B) Real income
(C) Current income
(D) Domestic income
Answer: (B) Real income
Q20. Which of the following items are excluded from GNP measurement?
(A) Purely financial transactions
(B) Transfer of used goods and non-market goods and services
(C) Illegal activities and the value of leisure
(D) All of these
Answer: (D) All of these
Q21. The subject of the Study of Macro Economics is:
(a) The Principle of National Income
(b) The Principle of Consumer
(c) The Principle of Producer
(d) None of these
Answer: (a) The Principle of National Income
Q22. Macro Economics Studies:
(a) Employment opportunities in the economy
(b) Theory of supply of Commodities
(c) Elasticity of demand in Scooter
(d) Price of wheat in the market
Answer: (a) Employment opportunities in the economy
Q23. General Price Level is studied in:
(a) Micro Economics
(b) Macro Economics
(c) Both (a) and (b)
(d) None of these
Answer: (b) Macro Economics
Q24. Employment Theory is related to :
(a) Static Economics
(b) Micro Economics
(c) Macro Economics
(d) None of these
Answer: (c) Macro Economics
Q25. Increase in Stock of Capital is known as:
(a) Capital Loss
(b) Capital Profit
(c) Capital Formation
(d) None of these
Answer: (c) Capital Formation
Q26. Which of the following is sPktock ?
(a) Wealth
(b) Saving
(c) Export
(d) Profit
Answer: (a) Wealth
Q27. Which one of the following is included in circular flow?
(a) Real Flow
(b) Money Flow
(c) Both (a) and (b)
(d) None of these
Answer: (c) Both (a) and (b)
Q28. Which one of the following is included in ‘Stock’?
(a) Quantity of Money
(b) Wealth
(c) Quantity of wheat stored in a warehouse
(d) All the above
Answer: (d) All the above
Q29. Which one is included inflow ?
(a) Consumption
(b) Investment
(c) Income
(d) All of these
Answer: (b) Investment
Q30. Which of the following is included in real flow?
(a) Flow of Goods
(b) Flow of Services
(c) Both (a) and (b)
(d) None of these
Answer: (c) Both (a) and (b)
Q31. Which services are provided by families to a firm?
(a) Land
(b) Labour
(c) Capital and Enterprises
(d) All the above
Answer: (d) All the above
Q32. Which one is included in the three-sector model?
(a) Family
(b) Firm
(c) Government
(d) All of these
Answer: (d) All of these
Q33. Which one is included in the four-sector model?
(a) Family, Firm, Industry
(b) Family, Firm, Government
(c) Family, Firm, Government, Foreign Sector
(d) None of the above
Answer: (c) Family, Firm, Government, Foreign Sector
Q34. Which is the equilibrium condition of circular flow in the four sector model?
(a) C + I
(b) C + I + G
(c) C + I + G + (X-M)
(d) None of these
Answer: (c) C + I + G + (X-M)
Q35. The primary sector includes:
(a) Agriculture
(b) Retail trading
(c) Small Industries
(d) All the these
Answer: (d) All the these
Q36. For a four sector or open economy the condition for equilibrium is:
(a) Savings + taxes + Imports = Investment + govt, expenditure + exports
(b) Total Leakages = Total Injections
(c) Aggregate output = Aggregate Expenditure
(d) All of these
Answer: (d) All of these
Q37. Which service is included in Tertiary Sector?
(a) Mining
(b) Construction
(c) Communication
(d) Animal Husbandry
Answer: (c) Communication
Q38. Which of the following is not flow?
(a) Capital
(b) Income
(c) Investment
(d) Depreciation
Answer: (a) Capital
Q39. The market price of all final goods of a country in a year is known as:
(a) GDPMP
(b) GDPFC
(c) NNPFC
(d) None of these
Answer: (a) GDPMP
Q40. Which one is true?
(a) GNP = GDP + Depreciation
(b) NNP = GNP + Depreciation
(c) NNP = GNP – Depreciation
(d) GNP = NNP – Depreciation
Answer: (c) NNP = GNP – Depreciation
Q41. GNPMp =?
(a) GDPMp – Depreciation
(b) GDPMp + Net Factor Income from Abroad
(c) GNPMp + Subsidy
(d) None of the above
Answer: (b) GDPMp + Net Factor Income from Abroad
Q42. NNPMP = ?
(a) GNPMp – Depreciation
(b) GNPMp + Depreciation
(c) GNPMp + Indirect Tax
(d) None of the above
Answer: (a) GNPMp – Depreciation
Q43. Depreciation expenses are included in:
(a) GNPMp
(b) NNPMp
(c) NNPFC
(d) None of these
Answer: (a) GNPMp
Q44. NDPFC = ?
(a) NDPMP – Indirect Tax
(b) GNPMP – Indirect Tax + Subsidy
(c) NDPMP – Subsidy
(d) NDPMF – Depreciation
Answer: (b) GNPMP – Indirect Tax + Subsidy
Q45. Net National Income at Factor Cost is called?
(a) National Income
(b) Gross Investment
(c) Domestic Income
(d) None of these
Answer: (a) National Income
Q46. Which one is included in National Income?
(a) Rent, Wage, Interest
(b) Rent, Wage, Salary
(c) Rent, Profit, Interest
(d) Rent, Wage, Salary, Interest, Profit
Answer: (d) Rent, Wage, Salary, Interest, Profit
Q47. What is the consumption of fixed capital called?
(a) Capital formation
(b) Depreciation
(c) Investment
(d) All of these
Answer: (b) Depreciation
Q48. Which of the following is correct?
(a) Disposable Income = Personal Income – Direct Taxes
(b) Disposable Income = Private Income – Direct Taxes
(c) Disposable Income = Personal Income – Indirect Taxes
(d) Disposable Income = Private Income – Indirect Taxes
Answer: (a) Disposable Income = Personal Income – Direct Taxes
Q49. If for a country net factor income from abroad is negative then:
(a) GDP < GNP
(b) GDP > GNP
(c) GDP ≥ GNP
(d) GDP = GNP
Answer: (b) GDP > GNP
Q50. The market value of all final goods and services produced in an economy over a year is called :
(a) Gross National Product
(b) National Income
(c) Gross Domestic Product
(d) Net National Product
Answer: (c) Gross Domestic Product
Q51. GNP at MP = ______
(A) GDPMP – Depreciation
(B) GDPMP + Depreciation
(C) GDPMP ÷ Depreciation
(D) GDPMP + Net factor income from abroad
Answer: (A) GDPMP – Depreciation
Q52. NDPMP = ________
(A) GDPMP – Depreciation
(B) GDPFC + Net factor income from abroad
(C) NNPFC + Net indirect taxes
(D) All of these
Answer: (A) GDPMP – Depreciation
Q53. NNPMP = ________
(A) GNPMP – Depreciation
(B) NDPMP + Net factor income from abroad
(C) NNPFC + Net indirect taxes
(D) All of these
Answer: (D) All of these
Q54. GDPFC =
(A) GDPMP – Net indirect taxes
(B) GDPMP + Net indirect taxes
(C) GDPMP + Subsidies
(D) GDPMP – Indirect taxes
Answer: (A) GDPMP – Net indirect taxes
Q55. NDPFC =
(A) GDPFC – Indirect taxes
(B) GDPFC – Depreciation
(C) GDPFC + Economic subsidy
(D) All of these
Answer: (B) GDPFC – Depreciation
Previous Year’s Quiz and Answers on National Income
| Questions | Answers |
| 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 shows the equilibrium of national income | Saving = investment |
Related MCQs and Answers
FAQs on National Income
1. What is the national income formula?
Answer: National Income = C (household consumption) + G (government expenditure) + I (investment expense) + NX (net exports).
2. What is the national income and how it is calculated?
Answer: 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.
3. What is a national income example?
Answer: 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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