CBSE Class 12 Economics National Income Worksheet Set 02

Question. Which concept is known as the study of aggregates?
a) Microeconomics
b) Macroeconomics
c) Market demand
d) Aggregate demand

Answer : B

Question. The goods which are ready to be used by the producers, are called .......... .
a) final goods
b) consumer goods
c) producer goods
d) Both (a) and (c)

Answer : D

Question. The goods used by manufacturer like tools, equipment and plant, etc are known as
a)manufactured goods
b) intermediate goods
c) final producer goods
d) All of these

Answer : C

Question. National income is the sum of factor incomes accuring to
a) nationals
b) economic territory
c) residents
d) both residents and non-residents

Answer : D

Question. Building, plant and machinery are capital goods. In the light of this statement, following are the characteristics of capital goods excluding
a) they are of high value
b) they are the assets of the company
c) they are used for less than one year
d) they are used in production process

Answer : C

Question. The individuals or institutions which take decisions regarding consumption, production, budget, taxation, policy, etc are known as
a) producers
b) consumers
c) government
d) All of these

Answer : D

Question. Real national income means the national income measured in terms of …… .
a) constant prices
b) current prices
c) wholesale prices
d) retail prices

Answer : A

Question. Which of the following represents national income?
a) GNPFC
b) NDPFC
c) NNPMP
d) NNPFC

Answer : D

Question. Match the following.
Column I                                 Column II
A. NDP_MP                            (i) NDP_FC +NFI_A  
B. NDP_FC                            (ii) GDP_MP– Depreciation
C. NNP_FC                            (iii) GDP_MP − NIT  – Depreciation
(Where, NDP = Net Domestic Product, GDP = Gross Domestic Product, NNP = Net National Product, NIT = Net Indirect Taxes, MP = Market Price, FC = Factor Cost, NFIA = Net Factor Income From Abroad)
Codes
     A   B  C 
a) (iii) (i) (ii)
b) (i) (ii) (iii)
c) (ii) (iii) (i)
d) (ii) (i) (iii)

Answer : C

Question. Which of the following affects national income?
a) Goods and Service Tax
b) Corporation Tax
c) Subsidies
d) None of these

Answer : B

Question. Under income method, profit of a company is the sum total of
a) retained earnings and dividends
b) dividends and corporation taxes
c) corporation taxes and retained earnings
d) retained earnings, dividends and corporation taxes

Answer : D

Question. Transfer payments are …… .
a) payments transferred from Central Government account to State Government account
b) payments made to factors of production by an organiser
c) payments made for no return service
d) None of the above

Answer : C

Question. .......... of the goods is the principle basis of classifying the goods into intermediate and final goods.
a) Production
b) Consumption
c) End-use
d) Expenditure

Answer : C

Question. When gross domestic product of a country is calculated at current prices, it is called
a) current GDP
b) real GDP
c) nominal GDP
d) constant GDP

Answer : C

Question. The process of adding to physical stock of capital is known as
a) investment
b) savings
c) capital formation
d) Both (a) and (c)

Answer : D

Question. Match the following.
Types of Producing Units                   Examples
A. Primary sector                                 (i) Medical and Transportation
B. Secondary sector                             (ii) Mining and Quarrying
C. Tertiary sector                                 (iii) Construction and manufacturing
Codes
      A   B  C 
a) (iii) (ii) (i)
b) (ii) (iii) (i)
c) (i) (ii) (iii)
d) (iii) (i) (ii)

Answer : B

Question. If gross value added at market price is Rs 350 crore, change in stock is − Rs 50 crore and intermediate consumption is Rs 200 crore, find the total amount of sales.
a) Rs 200 crore
b) Rs 250 crore
c) Rs 600 crore
d) Rs 500 crore

Answer : C

Question. The most common problem in estimating GNP is …… .
a) double counting
b) smuggling
c) black marketing
d) unorganised market

Answer : A

Question. Domestic territory of country includes
a) political frontiers
b) territorial water
c) embassies of a country located abroad
d) All of these

Answer : D

Question. National income for a given economy is Rs 10,000 crores while the domestic income of the same country is Rs 12,000 crores. What will be the value of NFIA?
a) Rs 2,000 crores
b) Rs – 2,000 crores
c) Rs 10,000 crores
d) None of these

Answer : B

Question. The difference between value of output and value added is …… .
a) depreciation
b) intermediate consumption
c) Net Indirect Taxes
d) NFIA

Answer : B

Question. In GNP calculation, which of the following should be excluded?
a) Rental incomes
b) Interest payments
c) Dividends
d) Government transfer payment

Answer : D

Question. If GNP at MP is Rs 5,200 and NNP at MP is Rs 5,000, what will be the value of consumption of fixed capital?
a) Rs 5,000
b) Rs 5,200
c) Rs 200
d) Can’t be determined

Answer : C

Question. Scholarship is an example of
a) grant
b) transfer payment
c) subsidies
d) capital formation

Answer : B

Question. Which of the following items are excluded in calculation of national income under income method?
a) Income from illegal activities like smuggling, theft, gambling, etc.
b) Income from windfall gains.
c) Transfer earnings like unemployment allowance, scholarship, etc.
d) All of the above

Answer : D

Question. As per the value added method of measuring national income, identify which of the following item will be excluded.
a) Production for self-consumption
b) Imputed rent of owner occupied houses
c) Brokerage earned by selling second hand goods
d) Sale proceeds of second hand goods

Answer : D

Question. Factor income received from abroad is Rs 100 crores while factor income paid to abroad is Rs120 crores.
The value of NFIA will be ............ .
a) Rs 20 crores
b) Rs – 20 crores
c) Rs 100 crores
d) Can’t be determined

Answer : B

Question. Gross Investment = Net Investment + …… .
a) Factor Income from Abroad
b) Net Indirect Taxes
c) Depreciation
d) None of the above

Answer : C

Question. Which of the following is correct?
a) Disposable Income = Personal Income – Direct Taxes
b) Disposable Income = Private Income – Direct Taxes
c) Disposable Income = Personal Income – Indirect Taxes
d) Disposable Income = Private Income – Indirect Taxes

Answer : A

Question. If the value of NIT is Rs 150 and subsidies is Rs 30.
What will be the value of indirect taxes?
a) Rs 120
b) Rs 150
c) Rs 180
d) Can’t be determined

Answer : C

Question. Which one is included in the two-sector model?
a) Family, Firm, Industry
b) Family, Firm, Government
c) Family, Firm, Government, Foreign Sector
d) None of the above

Answer : D

Question. Why are the intermediate goods not included in the national income while measuring national income?
a) To avoid double accounting
b) It decreases income
c) Intermediate goods are not good
d) All of the above

Answer : A

Question. Increase in stock of capital is known as
a) Capital Loss
b) Capital Profit
c) Investment
d) None of these

Answer : C

Question. GNP at MP = ................. .
a) GDPMP – Depreciation
b) GDPMP + Depreciation
c) GDPMP / Depreciation
d) GDPMP + Net Factor Income from Abroad

Answer : D

Question. Calculation of national income at market prices is known as .................... .
a) Money income
b) Real income
c) Non-monetary income
d) None of these

Answer : A

Question. Which of the following items are excluded from GNP measurement?
a) Purely financial transactions
b) Transfer of used goods and non-market goods and services
c) Illegal activities and the value of leisure
d) All of the above

Answer : D

Question. Increase in stock of capital is known as
a) Capital Loss
b) Capital Profit
c) Capital Formation
d) None of these

Answer : C

Question. Which of the following is not included in the calculation of gross national product?
a) Purchase and sale of old commodities
b) Intermediate commodities
c) (a) and (b) both
d) None of the above

Answer : C

Question. Which of the following is/are the method (s) of measuring national income?
a) Income method
b) Product method
c) Expenditure method
d) All of these

Answer : D

Question. Accounting of national income at constant prices is known as ............... .
a) Money income
b) Real income
c) Current income
d) Domestic income

Answer : B

Question. Calculate intermediate consumption from the following data

S.No.	Contents	Rs (in lakh)
(i)	Value of Output	200
(i)	Net Value Added at Factor Cost	80
(i)	Sales Tax	15
(iv)	Subsidy	5
(v)	Depreciation	20

a) Rs 200 lakh
b) Rs 140 lakh
c) Rs 150 lakh
d) Rs 220 lakh

Answer : C

Question. Which one of the following is included in circular f low?
a) Real Flow
b) Money Flow
c) Both (a) and (b)
d) None of these

Answer : C

Question. Which one of the following is included in circular f low?
a) Real Flow
b) Money Flow
c) Both (a) and (b)
d) None of these

Answer : C

Question. Which of the following is not a f low concept?
a) Capital
b) Income
c) Investment
d) Depreciation

Answer : A

Question. Find Net Value Added at Factor Cost.

S.No.	Contents	Rs (in lakhs)
(i)	Durable use Producer Goods with a Life Span of 10 Years 10	10
(iI)	Single use Producer Goods 5	5
(iII)	Sales 20	20
(iV)	Unsold Output Produced During the Year 2	2
(V)	axes on Production 1	1

a) Rs 10 lakh
b) Rs 15 lakh
c) Rs 29 lakh
d) Rs 17 lakh

Answer : B

Question. Which one of the following is not true?
a) GNP = GDP + Depreciation
b) NNP = GNP + Depreciation
c) NDP = GNP – Depreciation – NFIA
d) GNP = NDP + Depreciation + NFIA

Answer : A

Question. Consumption of fixed capital expenses are included in
a) GNPMP
b) NNPMP
c) NNPFC
d) None of these

Answer : A

Question. If the Nominal GDP is Rs 1,200 and Price Index (with base = 100) is 120, calculate Real GDP.
a) Rs 1,200
b) Rs 1,000
c) Rs 120
d) Can’t be determined

Answer : B

Question. Calculate national income from the following data

S.No.	Contents	Rs (in crore)
(i)	Net Current Transfers to the Rest of the World	(–) 5
(ii)	Private Final Consumption Expenditure	500
(iii)	Consumption of Fixed Capital	20
(iv)	Net Factor Income to Abroad (–)10	(–)10
(v)	overnment Final Consumption	200
(vi)	Net Indirect Tax	100
(vii)	Net Domestic Fixed Capital Formation	120
(viii)	Net Imports	30
(ix)	Change-in-stock	(–)20

a) Rs 680 crore
b) Rs 500 crore
c) Rs 820 crore
d) Rs 670 crore

Answer : A

Question. Calculate gross national product at market price from the following data

S.No.	Contents	Rs (in crore)
(i)	Compensation of Employees	4,000
(ii)	Rent	800
(iii)	Profits	1,500
(iv)	Undistributed Profits	400
(v)	Mixed Income of Self-employed	1,800
(vi)	Net Exports	(–) 30
(vii)	Net Domestic Capital Formation	900
(viii)	Gross Domestic Fixed Capital Formation	1,000
(ix)	Change-in-stock	(–) 80
(x)	Interest	50
(xi)	NIT	900
(xii)	Net Current Transfer from Rest of the World	500
(xii)	Net Factor Income from Abroad	60

a) Rs 5,800 crore
b) Rs 2,600 crore
b) Rs 9,130 crore
d) Rs 8,100 crore

Answer : C

 

Please click on below link to download CBSE Class 12 Economics National Income Worksheet Set B