Methods of Measuring National Income MCQs Practice
Methods of Measuring National Income – MCQs Practice
Class: CBSE Class 12
Subject: Economics
Section: National Income and Related Aggregates — Introductory Macroeconomics
Topic: Methods of Measuring National Income MCQs Practice
Exam Focus: CBSE Board Examinations | Strictly NCERT Based
Subject: Economics
Section: National Income and Related Aggregates — Introductory Macroeconomics
Topic: Methods of Measuring National Income MCQs Practice
Exam Focus: CBSE Board Examinations | Strictly NCERT Based
1. How many main methods are used to measure National Income?
Answer: C
National Income is measured through Production (Value Added), Income, and Expenditure methods.
National Income is measured through Production (Value Added), Income, and Expenditure methods.
2. Production method is also known as:
Answer: B
It sums value added at each stage of production.
It sums value added at each stage of production.
3. Value Added =
Answer: A
It prevents double counting in NI estimation.
It prevents double counting in NI estimation.
4. Double counting leads to:
Answer: B
Including intermediate goods inflates National Income.
Including intermediate goods inflates National Income.
5. Income method measures:
Answer: C
It sums wages, rent, interest, profit and mixed income.
It sums wages, rent, interest, profit and mixed income.
6. Compensation of Employees includes:
Answer: C
It includes all payments made to employees.
It includes all payments made to employees.
7. Operating surplus includes:
Answer: D
It is income from property and entrepreneurship.
It is income from property and entrepreneurship.
8. Mixed income refers to income of:
Answer: C
It combines wages + profit.
It combines wages + profit.
9. Expenditure method measures:
Answer: A
It totals consumption, investment, government spending, net exports.
It totals consumption, investment, government spending, net exports.
10. Expenditure formula is:
Answer: A
Standard macroeconomic identity.
Standard macroeconomic identity.
11. Consumption expenditure is by:
Answer: B
12. Investment includes:
Answer: B
13. Government expenditure excludes:
Answer: C
No productive service.
No productive service.
14. Net exports =
Answer: B
15. Production method suitable for:
Answer: A
16. Income method avoids:
Answer: B
17. Expenditure method reflects:
Answer: A
18. All three methods should give:
Answer: B
19. Statistical discrepancy arises due to:
Answer: A
20. Best method for developed economies:
Answer: A
Due to organized data availability.
Due to organized data availability.