hitechpathshala

Q. 1

Keynes believed that an economy may attain equilibrium level of output

only at the full-employment level of output

below the full-employment level of output

only if prices were inflexible

a) and c) above

Q. 2

1. According to Keynes, consumption expenditure is determined by

the level of interest rates

extent of government taxes and subsidies

disposable income

autonomous investment expenditure

Q. 3

The marginal propensity to consume (MPC) can be defined as

a change in spending due to a change in income

a change in income that is saved after consumption

part of income that is spent on consumption.

part of income that is not saved.

Q. 4

If the consumption function is expressed as C = a + bY then b represents

autonomous consumer expenditure when income is zero

the marginal propensity to consume.

the expenditure multiplier when consumption is increased

part of disposable income

Q. 5

If the consumption function is expressed as C = a + bY then a represents

autonomous consumer expenditure.

the marginal propensity to consume.

the consumption income relationship

Non- linear consumption function

Q. 6

Read the following statements
I. ‘Value added’ refers to the difference between value of output and purchase of intermediate goods.
II. ‘Value added’ represents the contribution of labour and capital to the production process.

Statements I and II are incorrect

Statements I and II are correct

Statement I is correct and II is incorrect

Statement II is correct and I is incorrect

Q. 7

Non-economic activities are

those activities whose value is excluded from national income calculation as it will involve double counting

those which produce goods and services, but since these are not exchanged in a market transaction they do not command any market value

those which do not involve production of goods and services as they are meant to provide hobbies and leisure time activities

those which result in production for self consumption and therefore not included in national income calculation

Q. 8

Which of the following does not enter into the calculation of national income?

Exchange of previously produced goods

Exchange of second hand goods

Exchange of stocks and bonds

All the above

Q. 9

1. Which of the following enters into the calculation of national income?

The value of the services that accompany the sale

Additions to inventory stocks of final goods and materials

Stocks and bonds sold during eth current year

(a) and (b) above

Q. 10

1. Gross National Product at market prices GNP MP is

GDP MP + Net Factor Income from Abroad

GDP MP - Net Factor Income from Abroad

GDP MP - Depreciation

GDP MP + Net Indirect Taxes

Q. 11

Which of the following is an example of transfer payment?

Old age pensions and family pensions

Scholarships given to deserving diligent students.

Compensation given for loss of property due to floods

All the above

Q. 12

Mixed income of the self -employed means

net profits received by self -employed people

outside wages received by self- employed people

combined factor payments which are not distinguishable,

wages due to non- economic activities

Q. 13

Which of the following is added to national income while calculating personal income?

Transfer payments to individuals

Undistributed profits of corporate

Transfer payments made to foreigners

Mixed income of self employed

Q. 14

The difference between value of output and value added is :

Depreciation

Intermediate consumption

Net indirect taxes

NFIA

Q. 15

Product method of calculating national income is also known as:

Income method

Value added method

Expenditure method

Distribution method

Q. 16

The most important problem of estimating National Income is..

Unorganised Market

Double Counting

Population rise

Income Inequalities

Q. 17

Goods and services for final consumption are:

Produced goods

Consumer goods

Giffen goods

None of these

Q. 18

Real National Income means national income measured at:

Constant Prices

Current Prices

Wholesale Prices

Retail Prices

Q. 19

Which one of the following is correct?

NNPFC = NNPMP - NIT

NNPMP = NNPFC - NIT

NNPMP= NNPFC - Depreciation

NNPMP-NNPFC + Depreciation

Q. 20

Which of the following represents National Income?

GDP at factor cost

N D P at factor cost

N N P at market price

N N P at factor cost.

Q. 21

NNPFC minus ................. = NDPFC

NFIA

Net indirect taxes

Depreciation

None.

Q. 22

GNP at factor cost minus depreciation is equal to.

NNP at factor cost

NDP at factor cost

GDP at factor cost

NNP at market price.

Q. 23

As per the Value Added Method of measuring national income identify which of the following item is excluded?

Brokerage and Commission earned by dealers of second hand goods

Sale of second hand machines

Production for Self - Consumption

Imputed rent of owner occupied houses.

Q. 24

Net Domestic Product (NDP) = Gross Domestic Product (GDP) minus

NFIA

IT

Depreciation

Transfer payment

Q. 25

GDP at Factor Cost = GDP at Market Price minus indirect taxes plus

income from abroad

subsidies

transfer payments

operating surplus

Q. 26

The difference between the GDPMP and GNPMP is

net income

subsidies

net factor income from abroad

depreciation.

Q. 27

GDP at factor cost = GDP at market price-(minus) +(plus) subsidies

direct taxes

indirect taxes

income from abroad

foreign debts.

Q. 28

National Income differs from Net National Product at market price by the amount of

Current transfers from the rest of the world

Net indirect taxes

National debt interest

Subsidies

Q. 29

Value added method is used to measure ..............

national income

domestic income

gross income

per capita income

Q. 30

Product method of calculating national income is also known as

Income method

Value added method

Expenditure method

None of the above.

Determination of National Income

Marks: 30