National Income accounting Set 1

Bachelor of Business Administration (BBA)

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This set of Business Economics Multiple Choice Questions & Answers (MCQs) focuses on National Income accounting Set 1

Q1 | The value of NNP at consumer point is called the
  • nnp at factor cost
  • nnp at market price
  • gnp at market price
  • gnp at factor cost
Answer: nnp at market price
Q2 | When depreciation is deducted from GNP, the net value is
  • net national product (nnp)
  • net domestic product
  • gross national product
  • disposable income
Answer: net national product (nnp)
Q3 | What is the net value of GDP after deducting depreciation from GDP(Gross domestic product)?
  • net national product
  • net domestic product
  • gross national product
  • disposable income
Answer: net domestic product
Q4 | Consider the following statements and identify the right ones.i. National income is the monetary value of all final goods and services produced.ii. Depreciation is deducted from gross value to get the net value
  • i only
  • ii only
  • both
  • none
Answer: both
Q5 | Which of the following is considered as financial year in India?
  • april 1 to march 31
  • january 1 to december 31
  • march 1 to april 30
  • march 16 to march 15
Answer: april 1 to march 31
Q6 | Which is not added in the calculation of national income of India?
  • the value of goods and services
  • the sold value of the old fridge
  • services rendered by the housewives
  • both [b] & [c]
Answer: both [b] & [c]
Q7 | Which sector contributes the most to India's economy in terms of GDP?
  • service sector
  • manufacturing sector
  • agricultural sector
  • small scale industries
Answer: service sector
Q8 | Which statement is true?
  • national expenditure = national income
  • national expenditure = national income + national savings
  • national expenditure = national income + taxes
  • national expenditure = national income – taxes
Answer: national expenditure = national income
Q9 | There are methods of measuring national income:
  • 5
  • 2
  • 1
  • 3
Answer: 3
Q10 | If we compare GDP and GNP, then:
  • gnp = gdp - net income from abroad
  • gnp = gdp + net income from abroad (r-p) ……. gdp+(r-p)
  • gnp = nnp - net income from abroad
  • gnp = nnp + net income from abroad
Answer: gnp = gdp + net income from abroad (r-p) ……. gdp+(r-p)
Q11 | Select the correct statement:
  • transfer payment are included in national income
  • depreciation allowance is a part of gnp
  • taxes are not included in nnp
  • gdp means gross direct production
Answer: depreciation allowance is a part of gnp
Q12 | Which is the largest figure:
  • nnp
  • gnp
  • pi (disposable personal income)
  • pi (personal income)
Answer: gnp
Q13 | Which is a flow concept:
  • number of my shirts
  • my total wealth
  • my monthly income
  • money supply
Answer: my monthly income
Q14 | To avoid double counting when GDP is estimated, economists:
  • use gdp deflator
  • calculate value added at each stage of production
  • use retail prices
  • use price of only intermediate goods
Answer: calculate value added at each stage of production
Q15 | Personal income includes:
  • direct taxes
  • indirect taxes
  • depreciation
  • none of these
Answer: direct taxes
Q16 | Personal income includes:
  • transfer payments
  • indirect taxes
  • depreciation
  • all of the above
Answer: transfer payments
Q17 | If savings exceed investment then:
  • national income rises
  • national income falls
  • national income is not affected
  • none of the above
Answer: national income falls
Q18 | This statement is true
  • ni = rent + interest + wages + profit
  • ni = rent + interest + wages + taxes
  • ni = govt. expenditure + interest + wages + profit
  • ni = rent + interest + wages + pensions
Answer: ni = rent + interest + wages + profit
Q19 | Which Ministry is responsible for calculating GDP in India?
  • ministry of finance
  • ministry of commerce and industry
  • ministry of central statistical and program implementation
  • ministry of consumer affairs
Answer: ministry of central statistical and program implementation
Q20 | Which state of India currently has the highest Per Capita Income?
  • goa
  • delhi
  • maharashtra
  • punjab
Answer: goa
Q21 | How much does the primary sector contribute to India's GDP?
  • 26%
  • 20%
  • 53%
  • 14%
Answer: 20%
Q22 | Which sector contributes the most to India's economy?
  • service sector
  • manufacturing sector
  • agricultural sector
  • small scale industries
Answer: service sector
Q23 | If the contribution of the agricultural sector is decreasing in a country's economy, then whatconclusion can be drawn?
  • the country is growing in the direction of being a developed nation
  • the country is moving towards becoming developing nation
  • the country is moving towards becoming less developed nation
  • the economic growth rate of the country has stopped
Answer: the country is growing in the direction of being a developed nation
Q24 | Which is not added in the calculation of national income of India?
  • the value of goods and services
  • the sold value of the old fridge
  • services rendered by the housewives
  • both b & c
Answer: both b & c
Q25 | Output means. ……………unless stated otherwise
  • gross output at mp (gdpmp)
  • net output at mp
  • gross output at fc
  • none
Answer: gross output at mp (gdpmp)
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