National Income Objective Questions for CBSE Board Exam
National Income Objective Questions for CBSE Board Exam
Class: CBSE Class 12
Subject: Economics
Section: National Income and Related Aggregates — Introductory Macroeconomics
Topic: National Income Objective Questions
Exam Focus: CBSE Board Examinations (NCERT Based)
Subject: Economics
Section: National Income and Related Aggregates — Introductory Macroeconomics
Topic: National Income Objective Questions
Exam Focus: CBSE Board Examinations (NCERT Based)
1. National Income refers to:
Answer: B
Explanation: National Income measures the total monetary value of all final goods and services produced within a country during an accounting year. It reflects the overall economic performance.
Explanation: National Income measures the total monetary value of all final goods and services produced within a country during an accounting year. It reflects the overall economic performance.
2. GDP at Market Price includes:
Answer: C
Explanation: GDP at Market Price is calculated by adding net indirect taxes (Indirect Taxes – Subsidies) to GDP at Factor Cost.
Explanation: GDP at Market Price is calculated by adding net indirect taxes (Indirect Taxes – Subsidies) to GDP at Factor Cost.
3. Which of the following is a stock variable?
Answer: C
Explanation: Stock variables are measured at a point of time. Capital is a stock, while income and investment are flow variables.
Explanation: Stock variables are measured at a point of time. Capital is a stock, while income and investment are flow variables.
4. NNP at Factor Cost is also known as:
Answer: B
Explanation: NNP at Factor Cost represents income earned by residents from all factors of production and is termed National Income.
Explanation: NNP at Factor Cost represents income earned by residents from all factors of production and is termed National Income.
5. Depreciation means:
Answer: B
Depreciation is the fall in value of capital goods due to wear and tear and obsolescence.
Depreciation is the fall in value of capital goods due to wear and tear and obsolescence.
6. Net Domestic Product =
Answer: B
NDP is obtained after deducting depreciation from GDP.
NDP is obtained after deducting depreciation from GDP.
7. NFIA stands for:
Answer: A
It is the difference between factor income earned from abroad and paid abroad.
It is the difference between factor income earned from abroad and paid abroad.
8. GNP =
Answer: A
GNP includes domestic product plus net factor income from abroad.
GNP includes domestic product plus net factor income from abroad.
9. Transfer payments are:
Answer: B
They are one‑sided payments like pensions with no productive service.
They are one‑sided payments like pensions with no productive service.
10. Personal Income excludes:
Answer: B
Corporate taxes are not received by households.
Corporate taxes are not received by households.
11. Disposable Income =
Answer: A
Income available for consumption and saving.
Income available for consumption and saving.
12. Value Added means:
Answer: A
It avoids double counting in national income.
It avoids double counting in national income.
13. Double counting should be avoided because it:
Answer: B
Including intermediates inflates income figures.
Including intermediates inflates income figures.
14. Income method measures:
Answer: A
It sums wages, rent, interest, profit.
It sums wages, rent, interest, profit.
15. Expenditure method includes:
Answer: A
Total spending on final goods.
Total spending on final goods.
16. Inventory investment is:
Answer: C
It measures change in unsold goods.
It measures change in unsold goods.
17. Real GDP is measured at:
Answer: B
Removes price change effect.
Removes price change effect.
18. Nominal GDP uses:
Answer: B
Reflects both price and quantity changes.
Reflects both price and quantity changes.
19. GDP Deflator measures:
Answer: A
It is a price index derived from GDP.
It is a price index derived from GDP.
20. Mixed income is income of:
Answer: C
It includes profit + wages of self‑employed persons.
It includes profit + wages of self‑employed persons.