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This set of Introductory Economics 2 Multiple Choice Questions & Answers (MCQs) focuses on Introductory Economics 2 Set 1
Q1 | Which of the following is an example of Transfer Income?
- bonus
- unemployment allowance
- compensation from the employer
- all of these
Q2 | Which of the following is an example of an intermediate good?
- car sold by a dealer of second hand cars
- steel and cement used to construct a flyover
- fertilizers purchased by a farmer
- all of these
Q3 | Out of the following, which aggregate represents 'National Income'?
- nnp mp
- gnp fc
- nnp fc
- gnp mp
Q4 | if facor income received from abroad is equal to factor income paid abroad, then which ofthe following is not a valid statement?
- national income = domestic income
- ndp fc + depreciation = gnp fc
- ndp fc + depreciation = gnp mp
- all are valid
Q5 | Cororate tax is not a part of :
- personal income
- naional income
- domestic income
- private income
Q6 | If economic subsidies are added to and Indirect taxes are substracted from the nationalincome at market prices, then it will be equal to :
- domestic income
- national income
- gnp at market price
- gdp at factor cost
Q7 | In which type of economy, domestic income is equal to national income?
- open economy
- closed economy
- both a and b
- neither a nor b
Q8 | Domestic factor income is another name for:
- ndp fc
- nnp mp
- gdp fc
- nnp fc
Q9 | Which of the following ia a part of National Income?
- old age pension
- unemployment allowance
- profit
- scholarship
Q10 | NDP at FC is less than National Income when:
- net factor income from abroad is positive
- net factor income from abroad is negative
- net factor income from abroad is zero
- net exports are positive
Q11 | National income is equal to:
- domestic product plus factor income earned from abroad
- domestic product plus net factor income earned from abroad
- domestic product mins factor income earned from abroad
- domestic product plus export minus imports
Q12 | is the net amount available to households for consuption and saving
- national income
- personal income
- personal disposable income
- government income
Q13 | GNP exceeds NNP by:
- amount of total taxes
- government expenditure
- transfer payments
- difference between gross investment and net investment
Q14 | GDP MP = Rs.1000 and subsidies = Rs.50, then GDP FC will be :
- 1050
- 950
- 1000
- 900
Q15 | Income method" is also known as:
- distributive share method
- income disposal method
- industrial origin method
- none of these
Q16 | Which one is included in National Income?
- winning from lottery
- milk purchase by a dairy shop
- national debt interest
- none of these.
Q17 | 'Distributed Profits' is also known as:
- corporate tax
- dividend
- retained earnings
- none of these
Q18 | If a farmer sells Wheat to miller for RS.500 and miller sells flour to baker for Rs.700and baker sells bread to consumer for Rs.1000, then total value added by Miller and baker is:
- 500
- 300
- 1700
- 1200
Q19 | Which of the following is included in domestic income?
- factor income from abroad
- windfall gains
- pension on retirement
- capial gains
Q20 | Expenditure method focuses on measurement of National income at:
- phases of production of goods and services
- phase of income distribution
- phase of income disposition
- all of these
Q21 | Which of the following is not an economic activity and hence not included whileestimating national income in india?
- medical services rendered by a dispensary
- a housewife doing household work
- a lawyer doing his practiced
- a maid working full time with a family
Q22 | National product at current prices is higher than national product at constant prices duringa period of :
- rising prices
- falling prices
- constant prices
- both a and b
Q23 | Net Factor Income from Abroad is taken into account when National Income is calculated by:
- value added method
- income method
- expenditure method
- any of the three methods
Q24 | Broker's commission on sale and purchase of second hand goods is included in nationalincome because:
- it is a part of compensation of employees
- it is a part of gross domestic capital formation
- it is an income earned for rendering productive services
- none of these
Q25 | The first National Income calculation on a scientific basis in India is in the year
- 1947-48
- 1951-52
- 1931-32
- 1990-91