National Income and Related Aggregates MCQs with Answers (NCERT Based)
National Income and Related Aggregates MCQs with Answers (NCERT Based)
Class: 12
Subject: Economics
Section: National Income and Related Aggregates
Book: Introductory Macroeconomics
Board: CBSE Board Examination
1. National Income is the sum total of:
Answer: C
National Income includes the monetary value of all final goods and services produced within a country during an accounting year. Intermediate goods are excluded to avoid double counting.
National Income includes the monetary value of all final goods and services produced within a country during an accounting year. Intermediate goods are excluded to avoid double counting.
2. GDP at Market Price includes:
Answer: A
GDP at MP includes indirect taxes but excludes subsidies. Net indirect taxes (Indirect Taxes – Subsidies) convert Factor Cost to Market Price.
GDP at MP includes indirect taxes but excludes subsidies. Net indirect taxes (Indirect Taxes – Subsidies) convert Factor Cost to Market Price.
3. NDP =
Answer: A
Net Domestic Product is derived by deducting depreciation (consumption of fixed capital) from GDP.
Net Domestic Product is derived by deducting depreciation (consumption of fixed capital) from GDP.
4. Which is a stock concept?
Answer: B
Wealth is measured at a point of time (stock), while income is measured over a period (flow).
Wealth is measured at a point of time (stock), while income is measured over a period (flow).
5. Personal Income excludes:
Answer: B
Corporate taxes are not received by households, hence excluded while calculating Personal Income.
Corporate taxes are not received by households, hence excluded while calculating Personal Income.
6. Disposable Income =
Answer: A
Disposable Income is the income available for spending and saving after paying direct taxes.
Disposable Income is the income available for spending and saving after paying direct taxes.
7. Value added method is also called:
Answer: B
It measures value added at each stage of production, hence called Product/Output method.
It measures value added at each stage of production, hence called Product/Output method.
8. Double counting refers to:
Answer: B
Including intermediate goods leads to overestimation, known as double counting.
Including intermediate goods leads to overestimation, known as double counting.
9. GNP = GDP +
Answer: A
GNP includes income earned by residents abroad minus income earned by foreigners domestically.
GNP includes income earned by residents abroad minus income earned by foreigners domestically.
10. Which is excluded from National Income?
Answer: A
Pension is a transfer payment; no current production is involved.
Pension is a transfer payment; no current production is involved.
11. Depreciation means:
Answer: B
Depreciation is consumption of fixed capital due to use and obsolescence.
Depreciation is consumption of fixed capital due to use and obsolescence.
12. NNP at FC is also called:
Answer: C
NNP at Factor Cost represents total factor earnings — National Income.
NNP at Factor Cost represents total factor earnings — National Income.
13. Expenditure method includes:
Answer: D
All final expenditures are summed under this method.
All final expenditures are summed under this method.
14. Mixed income belongs to:
Answer: C
Self-employed earn mixed income (wages + profit).
Self-employed earn mixed income (wages + profit).
15. Net factor income from abroad can be:
Answer: D
Depends on cross-border income flows.
Depends on cross-border income flows.
16. Intermediate goods are used for:
Answer: C
They help produce final goods.
They help produce final goods.
17. Real GDP measures output at:
Answer: B
Removes price changes using base year prices.
Removes price changes using base year prices.
18. Nominal GDP uses:
Answer: B
Calculated at prevailing market prices.
Calculated at prevailing market prices.
19. Transfer payments include:
Answer: D
No production service is provided in return.
No production service is provided in return.
20. Final goods are those:
Answer: B
They complete the production boundary in national income.
They complete the production boundary in national income.