CUET Economics MCQs Unit III National Income and Related Aggregates Basic Concepts and Measurement

Question : Those goods which satisfy human wants directly are called

a) Intermediate goods

b) Consumer goods

c) Capital goods

d) None of these

Answer : B

Question : 9 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 : A

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 : D

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 : A

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 : C

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 : D

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 : A

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 : D

Question : Increase in the stock of capital is known as

a) Capital loss

b) Capital gain

c) Capital formation

d) None of these

Answer : C

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

a) Radio

b) Clothes

c) Milk

d) Petrol

Answer : B

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 : B

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 : B

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 : B

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 : C

Question : Net capital formation causes

a) Increase in production capacity

b) Increase in depreciation

c) Increase in profits

d) Increase in cost

Answer : A

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 : B

Question : Which of the following is a flow variable

a) Consumption

b) Wealth

c) Quantity of money

d) None of these

Answer : A

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 : B

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 : C

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 : C

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 : A

Question : Which of the following is not transfer payment?

a) Interest on national debt

b) Retirement pensions

c) Old- age pensions

d) Donations

Answer : B

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 : D

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 : B

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 : C

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 : B
 

CUET Economics National Income and Related Aggregates MCQs

Question : Net investment is equal to

a) Gross investment + depreciation

b) Gross investment – depreciation

c) Gross investment ×depreciation

d) Gross investment ÷ depreciation

Answer : B

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 : C

Question : Those goods which satisfy human wants directly are called

a) Intermediate goods

b) Consumer goods

c) Capital goods

d) None of these

Answer : B

Question : Increase in the stock of capital is known as

a) Capital loss

b) Capital gain

c) Capital formation

d) None of these

Answer : C

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 : B

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 : B

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 : B

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 : B

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 : D

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 : C

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

a) Radio

b) Clothes

c) Milk

d) Petrol

Answer : B

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 : A

Question : Which of the following is a flow variable 

a) Consumption

b) Wealth

c) Quantity of money

d) None of these 

Answer : A

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 : D

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 : A

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 : A

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 : B

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 : D

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 : B

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 : A

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 : C

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 : C

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 : A

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 : B

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 : C

Question : Net capital formation causes

a) Increase in production capacity

b) Increase in depreciation

c) Increase in profits

d) Increase in cost

Answer : A

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 : B

Question : Which of the following is not transfer payment?

a) Interest on national debt

b) Retirement pensions

c) Old- age pensions

d) Donations

Answer : B

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 : B

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