CBSE Class 12 Economics National Income and Related Aggregates MCQs

Question :  Those goods which satisfy human wants directly are called

a) Intermediate goods         

b) Consumer goods

c) Capital goods

d) None of these

Answer :  Consumer goods

Question :  In the production of sugar, sugarcane is

a) A final good

b) A capital good

c) An Intermediate good

d) None of these

Answer :  An Intermediate good

Question :  Which of the following is a semi-durable goods?

a) Radio

b) Clothes

c) Milk

d) Petrol

Answer :  Clothes

Question :  Capital goods are those goods

a) Which are used in the production process for several years

b) Which are used in the production process for few years

c) Which Involve depreciation losses

d) Both (a) and (c)

Answer :  Both (a) and (c)

Question :  Increase in the stock of capital is known as

a) Capital loss

b) Capital gain

c) Capital formation

d) None of these

Answer :  Capital formation

Question :  Net investment is equal to

a) Gross investment + depreciation

b) Gross investment – depreciation

c) Gross investment ×depreciation

d) Gross investment ÷ depreciation

Answer :  Gross investment – depreciation

Question :  Net capital formation causes

a) Increase in production capacity

b) Increase in depreciation

c) Increase in profits

d) Increase in cost

Answer :  Increase in production capacity

Question :  Which of the following leads to depreciation?

a) Normal wear and tear                 

b) Damages due to floods

c) Damages due to market – crash

d) None of these

Answer :  Normal wear and tear                 

Question :  Which of the following leads to unexpected obsolescence?

a) Change in demand

b) Natural calamities 

c) Change in technology

d) None of these

Answer :  Natural calamities 

Question :  Income of the family is the example of which variable?

a) Stock

b) Flow

c) Both stock and flow

d) Neither stock nor flow

Answer :  Flow

Question :  A quantity measured per unit of time period is known as 

a) Stock variable

b) Flow variable

c) Inventory   

d) None of these

Answer :  Flow variable

Question :  Which of the following is a flow variable 

a) Consumption         

b) Wealth

c) Quantity of money

d) None of these 

Answer :  Consumption         

Question :  Domestic product is equal to:

a) National product + net factor income from abroad

b) National product - net factor income from abroad

c) National product ÷ net factor income from abroad

d) National product × net factor income from abroad

Answer :  National product - net factor income from abroad

Question :  Which of the following is not correct?

a) NNP at Market Price = GNP at Market Price + Depreciation

b) NDP at Market Price = NNP at Market Price - Net Factor Income from Abroad

c) NDP at Factor Cost = NDP at Market Price - Indirect taxes + Subsidies

d) GDP at Factor Cost = NDP at Factor Cost + Depreciation

Answer :  NNP at Market Price = GNP at Market Price + Depreciation

Question :  Which one is correct?

a) National Income = NDP at Factor Cost - Net Factor Income from Abroad

b) GNP at Factor Cost = GNP at Market Price + Net Indirect Tax

c) Personal Income = Private Income - Corporate Tax - Corporate Saving

d) Disposable Income = Saving of Household Sector - Consumption of Household Sector

Answer :  Personal Income = Private Income - Corporate Tax - Corporate Saving

Question :  Basis of the difference between the concepts of market Price and Factor Cost is:

a) Direct taxes

b) Indirect taxes

c) Subsidies     

d) Net indirect taxes

Answer :  Net indirect taxes

Question :  Which one refers to Net Indirect Taxes?

a) Indirect taxes + subsidies

b) Indirect taxes - subsidies

c) Direct taxes - subsidies  

d) None of the above

Answer :  Indirect taxes - subsidies

Question :  Which one leads to Factor Cost ?

a) Marker Price - indirect Taxes

b) Marker Price - Net Indirect Taxes

c) Marker Price + Indirect Taxes

d) Marker Price + Net Indirect Taxes

Answer :  Marker Price - Net Indirect Taxes

Question :  Which one includes depreciation?

a) GNP at Market Price

b) NNP at Market Price

c) NNP at Factor Cost          

d) None of these

Answer :  GNP at Market Price

Question :  Market price of the final goods and services (Including depreciation) produced within the domestic territory of a country during an accounting year  is called:

a) GDP at Market Price       

b) GNP at Factor Cost

c) NNP at Factor cost

d) GDP at Factor Cost

Answer :  GDP at Market Price       

Question :  GNP at market price is measured as:

a) GDP at market price – Depreciation

b) GDP at market price + Net factor Income from abroad

c) GNP at market price + subsidies

d) NDP at factor cost + Net factor income from abroad

Answer :  GDP at market price + Net factor Income from abroad

Question :  Value added method measured the contribution of which of the following within the domestic territory of a country?

a) One producing enterprise only

b) All producing enterprises

c) A few producing enterprises

d) None of these

Answer :  All producing enterprises

Question :  Which of the following is not included in final consumption expenditure?

a) Household expenditure on food          

b) Government final consumption expenditure

c) Household expenditure on education

d) Expenditure on raw material 

Answer :  Expenditure on raw material 

Question :  As a result of double counting, national incomes is:

a) Over- estimated                

b) Under- estimated

c) Correctly - estimated

d) Not estimated for the entire year of accounting

Answer :  Over- estimated                

Question :  Which of these is a limitation in the measurement of social welfare using GDP at constant prices as an index?

a) Increase in population size

b) Change in working conditions

c) Composition of production

d) All of these

Answer :  All of these

Question :  Which of the following is not transfer payment?

a) Interest on national debt

b) Retirement pensions

c) Old- age pensions

d) Donations

Answer :  Retirement pensions

Question :  Which of the following items is not included while estimating GNP of a country at market prices?

a) Salaries and wages before taxes

b) Indirect taxes

c) Remittances by NRIs        

d) Subsidy

Answer :  Remittances by NRIs        

Question :  Which of the following items is not included while estimating national Income by Income method?

a) Rent

b) Mixed income

c) Fixed investment

d) Undistributed profits

Answer :  Fixed investment

Question :  Real national income means:

a) National income at current prices

b) National income at factor prices 

c) National income at constant prices     

d) National income at average prices of the past 10  years

Answer :  National income at constant prices     

Question :  In India, suppliers of money are:

a) Government of the country

b) Banking system of the country

c) Both (a) and (b)

d) None of these

Answer :  Both (a) and (b)