Top 100+ National Income MCQ and Answer with FREE PDF

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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

QuestionsAnswers
What is national incomeNational 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 incomeThere are 3 methods to calculate National Income
The national income is equal toSum total of factor incomes
National income does not includeThe sale of second-hand goods is not included in the national income.
National income is estimated byNational Statistical Office (NSO)
National income is expressed onSum total of factor incomes
National income is which conceptSum total of factor incomes
Which of the following is included in the national incomeNational 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 incomeSaving = investment

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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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