GDP, GNP & NNP MCQs with Answers Class 12
GDP, GNP & NNP MCQs with Answers – Class 12 Economics
Class: CBSE Class 12
Subject: Economics
Section: National Income and Related Aggregates — Introductory Macroeconomics
Topic: GDP, GNP & NNP MCQs with Answers
Exam Focus: CBSE Board Examinations | NCERT Based Questions
Subject: Economics
Section: National Income and Related Aggregates — Introductory Macroeconomics
Topic: GDP, GNP & NNP MCQs with Answers
Exam Focus: CBSE Board Examinations | NCERT Based Questions
1. GDP stands for:
Answer: A
GDP refers to the total monetary value of all final goods and services produced within domestic territory during a year.
GDP refers to the total monetary value of all final goods and services produced within domestic territory during a year.
2. Domestic territory includes:
Answer: D
Domestic territory includes embassies, consulates, ships and aircraft operated by residents.
Domestic territory includes embassies, consulates, ships and aircraft operated by residents.
3. GNP =
Answer: A
GNP includes domestic output plus Net Factor Income from Abroad.
GNP includes domestic output plus Net Factor Income from Abroad.
4. NNP is derived by:
Answer: B
NNP = GNP – Depreciation. It shows net production after capital consumption.
NNP = GNP – Depreciation. It shows net production after capital consumption.
5. GDP at Factor Cost =
Answer: A
Factor cost excludes net indirect taxes.
Factor cost excludes net indirect taxes.
6. NFIA refers to income earned:
Answer: B
Difference between factor income received from abroad and paid abroad.
Difference between factor income received from abroad and paid abroad.
7. Which is largest?
Answer: B
Positive NFIA makes GNP > GDP.
Positive NFIA makes GNP > GDP.
8. Depreciation means:
Answer: A
It is capital consumption due to wear and tear.
It is capital consumption due to wear and tear.
9. Net Domestic Product =
Answer: A
It reflects net output within domestic territory.
It reflects net output within domestic territory.
10. National Income =
Answer: B
NNP at Factor Cost is called National Income.
NNP at Factor Cost is called National Income.
11. GDP measures production within:
Answer: B
Includes only domestic territory.
Includes only domestic territory.
12. If NFIA negative:
Answer: B
Income paid abroad exceeds received.
Income paid abroad exceeds received.
13. Market price includes:
Answer: C
Taxes – Subsidies.
Taxes – Subsidies.
14. Real GDP uses:
Answer: B
Removes inflation.
Removes inflation.
15. Nominal GDP reflects:
Answer: C
16. GDP Deflator =
Answer: A
17. Per capita GDP =
Answer: A
18. NNP MP → NNP FC deduct:
Answer: C
19. GNP – Depreciation =
Answer: B
20. Final measure of NI avoids:
Answer: A
Only final goods counted.
Only final goods counted.