Practice Test

Q1) ………. refers to money value of all the final goods and services produced by a country during a year. Show Answer

Q2) National dividend measures money value of __________ goods and services produced by residents of the country during current year.

Show Answer

Q3) National Income helps the Government to -
Show Answer

Q4) DomesticTerritory includes -
Show Answer

Q5) DomesticTerritory includes -

Show Answer

Q6) Which of the following concepts of National Income takes into consideration the geographical boundaries of a country, rather than the origin of the Factors of Production?
Show Answer

Q7) Concepts like GDP, GNP, NDP, NNP, etc. are measured at-
Show Answer

Q8) Measurement at Market Prices constitute -
Show Answer

Q9) Measurement at Factor Cost constitute -
Show Answer

Q10) Which of the following constitute the reason for difference between Market Prices and Factor Cost?

Show Answer

Q11) Which of the following equations is correct?
Show Answer

Q12) Which of the following equations is correct?
Show Answer

Q13) GDPFC = GDPmp - __________ + subsidies
Show Answer

Q14) GDP at factor cost = __________
Show Answer

Q15) Indirect Taxes minus Subsidies is called -
Show Answer

Q16) The difference between values at Market Prices and Factor Cost is attributed to -
Show Answer

Q17) If NNP figure is available at Market Prices, we will ……… Indirect Taxes and ………. Subsidies to the figure to get National Income of the economy.
Show Answer

Q18) Concepts like GDP, GNP, NDP, NNP, etc. are measured at -
Show Answer

Q19) When the value of output for each year is estimated on the basis of the prices prevailing in that year, it constitutes measurement at -
Show Answer

Q20) When the value of output for each year is estimated on the basis of fixed prices, or prices prevailing at a earlier point of time or in some earlier Base Year, it constitutes measurement at -
Show Answer

Q21) Measurement at Current Prices constitute -
Show Answer

Q22) Measurement at Constant Prices constitute -
Show Answer

Q23) ………. is the money value of all final goods and services produced in the domestic territory of a country during an accounting year.
Show Answer

Q24) ……….is the measure of the Market Value of all final goods and services produced by factors of production located within the boundaries of a country, during a specified period of time.
Show Answer

Q25) Net Domestic Product (NDP) equals -
Show Answer

Q26) Allowance given for using Capital Equipment for Production is known as -
Show Answer

Q27) Depreciation Allowance is also called as -
Show Answer

Q28) The difference between GNP and NNP equals -
Show Answer

Q29) ………. is the sum of the Gross Domestic Product and Net Factor Incomes from Abroad.
Show Answer

Q30) Net National Product (NNP) equals -
Show Answer

Q31) National Income refers to ………. at Factor Cost.
Show Answer

Q32) National Income means -
Show Answer

Q33) Net National Product at Factor Cost can be calculated as -
Show Answer

Q34) National income differs from Net National product at market price by the amount of-.
Show Answer

Q35) Which of the following statements regarding National Income is true?
Show Answer

Q36) Which of the following statements regarding National Income is false?
Show Answer

Q37) What is the usual effect of double counting on the National Income?

Show Answer

Q38) The difference between the GDPmp and GNPmp is –
Show Answer

Q39) GDP at market prices = __________
Show Answer

Q40) If Net Factor Income from Abroad is positive, then which of the following is true?
Show Answer

Q41) If Net Factor Income from Abroad is zero, then which of the following is true?
Show Answer

Q42) If Net Factor Income from Abroad is negative, then which of the following is true?
Show Answer

Q43) If Net Factor Income from Abroad is positive, then which of the following is true?
Show Answer

Q44) If Net Factor Income from Abroad is zero, then which of the following is true?
Show Answer

Q45) If Net Factor Income from Abroad is negative, then which of the following is true?
Show Answer

Q46) GDP at Market Price Less Net Indirect Taxes equals
Show Answer

Q47) GDP at Market Price Less Depreciation equals - Show Answer

Q48) GDP at Factor Cost Less Depreciation equals - Show Answer

Q49) GDP at Market Price Plus Net Factor Income from Abroad equals - Show Answer

Q50) To convert GDPmp → GNPmp

Show Answer

Q51) GDP at Factor Cost Plus Net Factor Income from Abroad equals - Show Answer

Q52) GNP at Market Price Less Net Indirect Taxes equals Show Answer

Q53) GNP at Market Price Less Depreciation equals -
Show Answer

Q54) GNP at Factor Cost Less Depreciation equals - Show Answer

Q55) NDP at Market Price Less Net Indirect Taxes equals - Show Answer

Q56) NDP at Market Price Plus Net Factor Income from Abroad equals - Show Answer

Q57) NDP at Factor Cost Plus Net Factor Income from Abroad equals - Show Answer

Q58) Suppose NDPmp is constant and deprecation is increasing then GDPmp - Show Answer

Q59) Which of the following equations regarding GDP or GNP at Market Prices is true? Show Answer

Q60) Which of the following equation is used to arrive at GNP at Factor Cost? Show Answer

Q61) Which of the following is incorrect?

Show Answer

Q62) ………. is the net flow of output produced in an economy, after adjusting the GNP by amount necessary to keep the existing capital intact. Show Answer

Q63) The difference between values at Domestic level and National Level is attributed to Show Answer

Q64) In the process of measuring the National Income, the difference between National and Domestic Product is known as - Show Answer

Q65) The Factor Income earned by Domestic Residents abroad is 500 and the Factor Income earned by Foreigners in the country is 600. If the GNP of the country is 6000, the GDP of the country is – Show Answer

Q66) From the following information compute GNP at Market Price. GDP at Factor Cost = 3000, Net Factor Income Abroad = 200, Indirect Taxes = 420, Subsidies = 240 Show Answer

Q67) Raj, an Indian Citizen, is working for an Indian MNC in USA. The income earned by Raj is part of Show Answer

Q68) The difference between Gross Values and Net Values is attributed to Show Answer

Q69) NNP at MP = NNP at FC, when there is Show Answer

Q70) GNP excludes Show Answer

Q71) Which will increase GNP? Show Answer

Q72) . GNP - NNP = Show Answer

Q73) National Income at Market Prices, plus Subsidies, but less Indirect Taxes is equal to which one of the following? Show Answer

Q74) ………. is the sum of all incomes actually received by individuals during a given year. Show Answer

Q75) Personal Income = Private Income minus Show Answer

Q76) ………. is the net amount available after meeting tax liabilities Show Answer

Q77) ………. is the net amount available for consumption and savings. Show Answer

Q78) Which of the following statements is not true? Show Answer

Q79) Consumption of a particular good or service depends on various factors such as weather, tastes and preferences of the customer availability of the product and its substitutes, etc. But consumption is primarily determined by - Show Answer

Q80) Which of the following fiscal policy instruments has a direct impact on People's Disposable Income? Show Answer

Q81) In a simple economy, National Income is - Show Answer

Q82) National Income may be viewed as a - Show Answer

Q83) Which of the following is not, by definition, equal to National Income? Show Answer

Q84) National Income may be computed under ………. Method. Show Answer

Q85) The three methods of computing National Income are - Show Answer

Q86) Which of the following is not an approach used to measure National Income? Show Answer

Q87) Product Method focusses on measurement of National Income at Show Answer

Q88) The production method of calculating national income is also known as __________ Show Answer

Q89) Income Method focusses on measurement of National Income at Show Answer

Q90) . Expenditure Method focusses on measurement of National Income at Show Answer

Q91) ………. Method is suitable for measuring National Income in the case of Agricultural Sector. Show Answer

Q92) ………. Method is suitable for measuring National Income in the case of Small Scale Sector. Show Answer

Q93) ………. Method is suitable for measuring National Income in the case of Construction Sector. Show Answer

Q94) ………. Method is suitable for measuring National Income in the case of Developed Countries where all persons file their income-tax returns. Show Answer

Q95) ………. Method is also called Value Added Method of computing National Income. Show Answer

Q96) The Net Values Added method of measuring National Income is also known as Show Answer

Q97) Value added method is used to measure __________ Show Answer

Q98) The Value Added by a Firm is equal to Show Answer

Q99) Which of the following items are included in computing National Income under Product Method?
Show Answer

Q100) In which of the following approaches is National Income measured by calculating the Total Value of the Final Output of a country?
Show Answer

Q101) The annual flow of Factor Earnings in the form of Wages, Rents, Interest and Profits accrued from Labour, Land, Capital and Organization respectively are taken into account in which of the following approaches to measuring National Income? Show Answer

Q102) Which of the following items are included in computing National Income under Income Method? Show Answer

Q103) Which of the following items are not included in computing National Income under Income Method? Show Answer

Q104) Net Value Added is equal to Show Answer

Q105) ………. refers to the Income where the distinction between Capital and Labour is not possible, e.g. income of self-employed persons. Show Answer

Q106) Mixed Income of the self-employed means Show Answer

Q107) Income Method does not include Show Answer

Q108) . ……… Sectors have expenditure in the economy. Show Answer

Q109) ……… Method of measuring National Income aggregates all the money spent by Private Citizens, Firms and the Government within a given year. Show Answer

Q110) ……… constitutes expenditure on consumer goods and services. Show Answer

Q111) ……… constitutes expenditure on Capital Goods. Show Answer

Q112) Which of the following is not included in Gross Investment? Show Answer

Q113) . Consumption Expenditure is done by ……… Sectors of the economy Show Answer

Q114) Expenditure on Defence is Show Answer

Q115) Investment Expenditure is done by ……… Sectors of the economy Show Answer

Q116) Which is not the major source of Government Saving? Show Answer

Q117) Transfer Payments refer to payments which are made Show Answer

Q118) Which of the following is an example of a Government Transfer Payment?
Show Answer

Q119) . Identify the item which is not a Factor Payment. Show Answer

Q120) In computing National Income under Expenditure Method, the expenditure on Final Goods and Services produced ……… is included. Show Answer

Q121) In computing National Income under Expenditure Method, the expenditure on ……… is excluded. Show Answer

Q122) In computing National Income under Expenditure Method, Government Expenditure on Pensions, Scholarships, Unemployment Allowance, etc. is Show Answer

Q123) Under Expenditure Method, Consumption Expenditure + Net Domestic Investment + Replacement Expenditure equals - Show Answer

Q124) Under Expenditure Method, Consumption Expenditure + Net Domestic Investment + Net Foreign Investment + Replacement Expenditure equals - Show Answer

Q125) Under Expenditure Method, Consumption Expenditure + Net Domestic Investment equals Show Answer

Q126) Under Expenditure Method, Consumption Expenditure + Net Domestic Investment + Net Foreign Investment equals - Show Answer

Q127) Which of the following relationships is true? Show Answer

Q128) Net Domestic Expenditure is Consumption Expenditure plus Show Answer

Q129) Which of the following economic policies by Governments help maintain full employment and reasonable price stability in an economy? Show Answer

Q130) Which of the following is correct? Show Answer

Q131) In the Keynesian model, equilibrium aggregate output is determined by Show Answer

Q132) Keynes believed that an economy may attain equilibrium level of output Show Answer

Q133) According to Keynes, consumption expenditure is determined by Show Answer

Q134) The marginal propensity to consume (MPC) can be defined as Show Answer

Q135) If the consumption function is expressed as C = a + bY then b represents Show Answer

Q136) If the consumption function is expressed as C = a + bY then a represents Show Answer

Q137) If the consumption function is C = 20 + 0.5Yd, then an increase in disposable income by ₹ 100 will result in an increase in consumer expenditure by ₹ ---------- Show Answer

Q138) If the autonomous consumption equals ₹ 2,000 and the marginal propensity to consume equals 0.8. If disposable income equals ₹ 10,000, then total consumption will be ₹ ______ Show Answer

Q139) I n the Keynesian cross diagram, the point at which the aggregate demand function crosses the 45- degree line indicates the
Show Answer

Q140) I n a closed economy, aggregate demand is the sum of

Show Answer

Q141) Under equation C= a+by, b=0.8, what is the value of 2 sector expenditure multiplier? Show Answer

Q142) Which of the following is NOT a component of Gross Domestic Product (GDP)? Show Answer

Q143) Which of the following is the correct formula for calculating Gross Domestic Product(GDP)? Show Answer

Q144) Which of the following is a measure of a country's Gross National Product(GNP)? Show Answer

Q145) In national income accounting,"Net Domestic Product (NDP)" is defined as: Show Answer

Q146) What does GNP stand for in national income accounting? Show Answer

Q147) In national income accounting,what does the term "disposable income" refer to? Show Answer

Q148) Which of the following is used to measure the total income earned by a country's residents,regardless of their location? Show Answer

Q149) In National Income Accounting,depreciation of capital refers to: Show Answer

Q150) Which of the following is an example of a transfer payment in National Income Accounting? Show Answer

Q151) Which of the following is NOT a component of Aggregate Expenditure in National Income Accounting? Show Answer

Q152) National Income estimates are essential for: Show Answer

Q153) The Gross Domestic Product (GDP) per capita is used to: Show Answer

Q154) Which of the following is NOT a usefulness of National Income estimates? Show Answer

Q155) National Income estimates help identifying: Show Answer

Q156) The difference between Gross National Product (GNP) and Gross Domestic Product (GDP) is mainly due to: Show Answer

Q157) Which of the following is a usefulness of National Income estimates in economic planning? Show Answer

Q158) Which of the following is NOT a significance of National Income estimates? Show Answer

Q159) The concept of "per capita income" derived from National Income estimates is used to: Show Answer

Q160) National Income estimates help in identifying: Show Answer

Q161) National Income estimates are essential for: Show Answer

Q162) National Income estimates are essential because they help in: Show Answer

Q163) The significance of National Income estimates lies in: Show Answer

Q164) Which of the following is NOT a usefulness of National Income estimates? Show Answer

Q165) National Income estimates help in international comparisons of countries economies because they: Show Answer

Q166) Which of the following statements is true regarding the usefulness of National Income estimates? Show Answer

Q167) Gross Domestic Product(GDP) measures: Show Answer

Q168) Gross National Product(GNP) is defined as: Show Answer

Q169) Net National Produced(NNP) is calculated by: Show Answer

Q170) National Disposal Income(NDI) is defined as: Show Answer

Q171) Personal Income (PI) is calculated as: Show Answer

Q172) Gross Domestic Product (GDP) is defined as the total: Show Answer

Q173) Gross National Product (GNP) is calculated as the total: Show Answer

Q174) Net Income Product (NNP) is derived by deducing: Show Answer

Q175) National Disposal Income (NDI) is calculated by: Show Answer

Q176) Personal Income (PI) is derived from National Income (NI) by: Show Answer

Q177) Which concept of National Income includes only the market value of final goods and service produced within a country's borders during a specific time period? Show Answer

Q178) Which concept of National Income deducts depreciation (capital consumption) from Gross Domestic Product(GDP)? Show Answer

Q179) Which concept of National Income takes into account the net income earned from foreign investments and deducts net income earned by foreigners within the country? Show Answer

Q180) Which concept of National Income includes only the value added at each stage of production and avoids double-counting?
Show Answer

Q181) Which concept of National Income measures the total market value of all final goods and services produced within a country's borders,excluding the value of indirect taxes and including subsidies? Show Answer

Q182) In a country,the nominal GDP for the year 2022 is Rs 800 billion ,and the GDP deflator for 2022 is 120.0.What is the real GDP for 2022? Show Answer

Q183) The nominal GDP of a country in the base year was Rs 500 billion,and the real GDP in the same year was Rs 450 billion.Calculate the GDP deflator for the base year. Show Answer

Q184) In the current year,the nominal GDP of the country is Rs 600 billion ,and the real GDP is Rs 540 billion.Calculate the GDP deflator for the current year using the base year's GDP deflator (which is 100.0). Show Answer

Q185) If the GDP deflator for a particular year is 120.0,what does it indicate about the price level compared to the base year? Show Answer

Q186) If the GDP deflator for a particular year is 90.0,what does it indicate about the price level compared to the base year? Show Answer

Q187) In a country, the Gross National product (GNP) for the year 2021 is calculated as follows:
- Gross Domestic Product(GDP)=Rs 900 billion
- Net factor income from abroad (NFIA)=-Rs 50 billion (negative value indicates net outflow if income to foreign countries)
Calculate the GNP for the year 2021. Show Answer

Q188) In a country,the Gross National Product (GNP) for the year 2022 is Rs 1200 billion,and Net factor income from abroad (NFIA) is Rs 40 billion(positive value indicates net inflow of income from foreign countries).
Calculate the Gross Domestic Product (GDP) for the year 2022. Show Answer

Q189) In a country,the Gross National Product(GNP) for the year 2023 is Rs 2500 billion,and Net factor income from abroad(NFIA) is Rs 80 billion (positive value indicates net inflow of income from foreign countries).The GDP for the year 2023 is: Show Answer

Q190) In a country,the Gross National Product (GNP) for the year 2022 is calculated as follows:
Gross Domestic Product(GDP)=Rs 900 billion
Net factor income from abroad=Rs 50 billion
What is the Gross National Product (GNP) for the year 2022? Show Answer

Q191) In a country,the Gross National Product (GNP) at Market Prices for the year 2021 is Rs 800 billion.During the same year,depreciation (Capital Consumption Allowance) amounts to Rs 100 billion.Calculate the Net National Product at Market Prices (NNPMP) for the year 2021. Show Answer

Q192) In a country,the Gross National Product(GNP) at Market Prices for the year 2022 is Rs 1500 billion.During the same year,depreciation(Capital Consumption Allowance) amounts to Rs 200 billion.Calculate the Net National Product at Market Prices (NNPMP) for the year 2022. Show Answer

Q193) In a country,the Gross National Product (GNP) at Market Prices for the year 2023 is Rs 2000 billion.During the same year,depreciation(Capital Consumption Allowance)amounts to Rs 250 billion. The Net National Product at Market Prices (NNPMP) for the year 2023 is: Show Answer

Q194) In a country,the Gross Domestic Product at Market Prices (GDPMP) for the year 2021 is Rs900 billion,and indirect taxes (subsides) on products are Rs 50 billion.Calculate the Gross Domestic Product at Factor Cost (GDPFC) for the year 2021. Show Answer

Q195) In a country,the Gross Domestic Product at Market Prices (GDPMP) for the year 2022 is Rs 1200 billion,and indirect taxes (subsidies) on products are Rs 100 billion.Calculate the Gross Domestic Product at Factor Cost (GDPFC) for the year 2022. Show Answer

Q196) In a country,the Gross Domestic Product at Market Prices (GDPMP) for the year 2023 is Rs 2500 billion,and indirect taxes (subsidies) on products are Rs 200 billion.Calculate the Gross Domestic Product at Factor Cost (GDPFC) for the year 2023. Show Answer

Q197) In a country,the Gross Domestic Product at Factor Cost (GDPFC) for the year 2021 is Rs 800 billion,and depreciation(consumption of fixed capital) is Rs 100 billion.Calculate the Net Domestic Product at Factor Cost (NDPFC) for the year 2021. Show Answer

Q198) In a country,the Gross Domestic Product at Factor Cost (GDPFC) for the year 2022 is Rs 1200 billion,and depreciation (consumption of fixed capital) is Rs 150 billion.Calculate the Net Domestic Product at Factor Cost (NDPFC) for the year 2022. Show Answer

Q199) In a country,the Gross Domestic Product at Factor Cost (GDPFC) for the year 2023 is Rs 2500 billion,and depreciation (consumption of fixed capital) is Rs 200 billion.Calculate the Net Domestic Product at Factor Cost (NDPFC) for the year 2023. Show Answer

Q200) In a country ,the Gross National Product at Factor Cost (GNPFC) for the year 2021 is Rs 900 billion,and net indirect taxes(subsidies) on products are Rs50 billion.Calculate the Net National Product at Factor Cost (NNPFC) or National Income for the year 2021. Show Answer

Q201) In a country,the Gross National Product at Factor Cost (GNPFC) for the year 2022 is Rs 1200 billion, and net indirect taxes (subsidies) on products are Rs 100 billion. Calculate the Net National Product at Factor Cost (NNPFC) or National Income for the year 2022. Show Answer

Q202) In a country ,the Gross National Product at factor Cost (GNPFC) for the year 2021 is Rs 800 billion ,and the total population is 200 million.
Calculate the Per Capita Income for the year 2021. Show Answer

Q203) In a country ,the Gross National Product at Factor Cost (GNPFC) for the year 2022 is Rs 1200 billion,and the total population is 250 million.Calculate the Per Capita Income for the year 2022. Show Answer

Q204) In a country ,the Gross National Product at Factor Cost (GNPFC) for the year 2023 is Rs 2500 billion,and the total population is 300 million.Calculate the Per Capita Income for the year 2023. Show Answer

Q205) In a country ,he Gross National Product at Factor Cost(GNPFC) for the year 2021 is Rs 900 billion,depreciation (consumption if fixed capital) is Rs 100 billion,net indirect taxes (subsidies) on products are Rs 50 billion,and net current transfers from abroad are Rs 20 billion.Calculate the Personal Income for the year 2021. Show Answer

Q206) In a country,the Gross National Product at Factor Cost (GNPFC) for the year 2022 is Rs 1200 billion,depreciation (consumption of fixed capital) is Rs 150 billion,net indirect taxes subsidies) on products are Rs 80 billion,and net current transfers from abroad are Rs 30 billion.Calculate the Personal Income for the year 2022. Show Answer

Q207) In a country ,the Gross National Product at factor Cost (GNPFC) for the year 2023 is Rs 2500 billion,depreciation (consumption of fixed capital) is Rs 200 billion,net indirect taxes (subsidies) on products are Rs 100 billion,and net current transfers from abroad are Rs 40 billion.Calculate the Personal Income for the year 2023. Show Answer

Q208) In a country ,the Gross National Product at Factor Cost (GNPFC) for the year 2021 is Rs 900 billion.The indirect taxes (net of subsidies) on products are Rs 50 billion,and the consumption of fixed capital (depreciation) is Rs 100 billiion.Calculate the Personal Income for the year 2021,given that there are no other income transfer Rs Show Answer

Q209) In a country,the Gross National Product at Factor Cost (GNPFC) for the year 2022 is Rs 1200 billion.The indirect taxes (net of subsidies) on products are Rs 80 billion,and the consumption of fixed capital (depreciation) is Rs 150 billion.Calculate the Personal Income for the year 2022,given that there are no other income transfer. Show Answer

Q210) In a country,the Gross National Product at Factor Cost (GNPFC) for the year 2023 is Rs 2500 billion.The indirect taxes (net of subsidies) on products are Rs 150 billion,and the consumption of fixed capital (depreciation) is Rs 200 billion.Calculate the Personal Income for the year 2023,given that there are no other income transfer Show Answer

Q211) In a country,the Personal Income (PI) for the year 2021 is Rs 800 billion.The direct taxes are Rs 100 billion,and the social security contributions are Rs 50 billlion.Calculate the Disposable Personal Income (DI) for the year 2021,given that there are no other income transfer Show Answer

Q212) In a country,the Personal Income (PI) for the year 2022 is Rs 1200 billion.The direct taxes are Rs 150 billion,and the social security contributions are Rs 100 billion.Calculate the Disposable Personal Income(DI) for the year 2022,given that there are no other income transfer Rs Show Answer

Q213) In a country,the Personal Income (PI) for the year 2023 is Rs 2500 billion.The direct taxes are Rs 200 billion,and the social security contribution are Rs 150 billion.Calculate the Disposable Personal Income (DI) for the year 2023,given that there are no other income transfer Rs Show Answer

Q214) In a country,the Personal Income (PI) for the year 2021 is Rs 900 billion.Personal taxes for the year 2021 are Rs 150 billion. Calculate the Disposable Personal Income (DI) for the year 2021. Show Answer

Q215) In a country,the Personal Income (PI) for the year 2022 is Rs 1200 billion.Personal taxes for the year 2022 are Rs 180 billion.Calculate the Disposable Personal Income (DI) for the year 2022. Show Answer

Q216) In a country ,the Personal Income (PI) for the year 2023 is Rs 2500 billion.Personal taxes for the year 2023 are Rs 300 billion.Calculate the Disposable Personal Income (DI) for the year 2023. Show Answer

Q217) In a country ,the Personal Income (PI) for the year 2021 is Rs 900 billion.Current transfers from the government and rest of the world to individuals for the year 2021 are Rs 50 billion.Social contributions by individuals for the year 2021 are Rs 100 billion.Calculate the Private Income for the year 2021. Show Answer

Q218) In a country ,the Personal Income (PI) for the year 2022 is Rs 1200 billion.Current transfers from the government and rest of the world to individuals for the year 2022 are Rs 80 billion.Social contributions by individuals for the year 2022 are Rs 150 billion.Calculate the Private Income for the year 2022. Show Answer

Q219) In a country ,the Personal Income (PI) for the year 2023 is Rs 2500 billion.Current transfers from the government and rest of the world to individuals for the year 2023 are Rs 200 billion.Social contribution by individuals for the year 2023 are Rs 200 billion.Calculate the Private Income for the year 2023. Show Answer

Q220) In a country ,the Personal Income (PI) for the year 2021 is Rs 900 billion.Transfer payments for the year 2021 are Rs 100 billion,and corporate taxes are Rs 50 billion.Calculate the Private Income for the year 2021. Show Answer

Q221) In a country ,the Personal Income (PI) for the year 2022 is Rs 1200 billion.Transfer payments for the year 2022 are Rs 150 billion,and corporate taxes are Rs 80 billion.Calculate the Private Income for the year 2022. Show Answer

Q222) In a country,the Personal Income (PI) for the year 2023 is Rs 2500 billion.Transfer payments for the year 2023 are Rs 200 billion,and corporate taxes are Rs 150 billion.calculate the Private Income for the year 2023. Show Answer

Q223) Which of the following organizations is responsible for estimating the National Income of India? Show Answer

Q224) Which of the following methods is used to estimate the National Income of India? Show Answer

Q225) Which of the following is NOT considered a part of the National Income of India? Show Answer

Q226) Which base year is currently used for calculating the real Gross Domestic Product (GDP) in India? Show Answer

Q227) Which component of National Income in India is known as the "single largest component"contributing to the economy 's output? Show Answer

Q228) Which organization is responsible for estimating and publishing National Income data in India? Show Answer

Q229) Which method is used to estimate National Income in India? Show Answer

Q230) The base year for computing the Gross Domestic Product (GDP) in India is generally revised after every: Show Answer

Q231) Which factor cost adjustment is necessary to arrive at Gross Domestic Product(GDP) at factor cost from GDP at market prices in India? Show Answer

Q232) Which of the following sectors is NOT included in the sectoral classification used for estimating National Income in India? Show Answer

Q233) In India,which organization is responsible for the estimation of National Income? Show Answer

Q234) Which factor-based method is used for calculating Gross Domestic Product (GDP) in India? Show Answer

Q235) Which fiscal year is considered for the computation of India's National Income statistics? Show Answer

Q236) In India ,which sector contributes the most to the Gross Domestic Product(GDP) ? Show Answer

Q237) In the context of National Income accounting ,what does GVA stand for?
Show Answer

Q238) In a simple economy,the total value of goods and services produced (Gross Domestic Product -GDP) is Rs 500 billion.The total income earned by households (wages,rent,and profits) is Rs 400 billion.Calculate the total value of savings and taxes in this economy. Show Answer

Q239) In a closed economy ,the total value of goods and services produced (Gross Domestic Product-GDP) is Rs 800 billion.The total value of consumption expenditure is Rs 600 billion.Calculate the total value of savings in this closed economy. Show Answer

Q240) In an open economy,the total value of goods and services produced (Gross Domestic Product-GDP) is Rs 1500 billion.The total value of consumption expenditure is Rs 1000 billion,and exports are Rs 300 billion.Calculate the total value of savings in this open economy. Show Answer

Q241) In a two-sector economy,the total value of output (Gross Domestic Product) is Rs 800 billion.Calculate the total value of income generated in the economy. Show Answer

Q242) In a three-sector economy, the total value of output (Gross Domestic Product) is Rs 1,200 billion. The value of export is Rs 100 billion, and the value of government spending on goods and services is Rs 150 billion. Calculate the total value of income generated in the economy. Show Answer

Q243) In a four-sector economy ,the total value of output (Gross Domestic Product) is Rs 2000 billion.The value of import is Rs 300 billion,and the value of government spending on goods and services is Rs 400 billion.Calculate the total value of income generated in the economy. Show Answer

Q244) Consider a three-stage production process.The value of raw materials purchased by a firm is Rs 500,the cost of intermediate goods is Rs 300,and the firm adds a value of Rs 200 to produce the final goods.Calculate the value added by the firm. Show Answer

Q245) Consider a two-stage production process.The value of raw materials purchased by a firm is Rs 400,and the firm adds a value of Rs 600 to produce the final goods.Calculate the value added by the firm. Show Answer

Q246) In a three-stage production process,the value of raw materials purchased by a company is Rs 500 million.The company adds value worth Rs 300 million during the production process.Calculate the total value of the final product. Show Answer

Q247) In a four-stage production process,the value of intermediate goods purchased by a company is Rs 800 billion.The company adds value worth Rs 400 billion during the production process.Calculate the total value of the final product. Show Answer

Q248) In a five-stage production process,the value of raw materials purchased by a company is Rs 1000 million.The company adds value worth Rs 500 million during the production process .Calculate the total value of the final product. Show Answer

Q249) In an economy, the following income components are given: employee compensation (Rs 300 billion),rents (Rs 50 billion),interest (Rs 100 billion),proprietor's income (Rs 150 billion),corporate profits (Rs 200 billion),and taxes on production and imports (Rs 50 billion) .Calculate the Gross Domestic Product (GDP) using the Income Method. Show Answer

Q250) In an economy ,the following income components are given:employee compensation(Rs 400 billion),rents(Rs 70 billion),interest (Rs 120 billion),proprietor's income (Rs 180 billion),corporate profits (Rs 250 billion),and taxes on production and imports (Rs 60 billion). Calculate the Gross Domestic Product (GDP) using the Income Method. Show Answer

Q251) In an economy ,the following income components are given: employee compensation (Rs 500 billion),rents (Rs 90 billion),interest (Rs 150 billion),(proprietor's income (Rs 200 billion),corporate profits (Rs 300 billion),and taxes on production and imports (Rs 80 billion). Calculate the Gross Domestic Product (GDP) using the Income Method. Show Answer

Q252) In a country,the total compensation of employees(wages,salaries,and benefits) for the year 2021 is Rs 500 billion.The gross operating surplus (profit) earned by businesses for the year 2021 is Rs 300 billion.Calculate the Gross National Income (GNI) for the year 2021. Show Answer

Q253) In a country,the total compensation of employees (wages,salaries,and benefits) for the year 2022 is Rs 600 billion.The gross operating surplus (profit) earned by businesses for the year 2022 is Rs 400 billion.Calculate the Gross National Income (GNI) for the year 2022. Show Answer

Q254) In a country,the total compensation of employees (wages,salaries,and benefits)for the year 2023 is Rs 800 billion.The gross operating surplus (profit) earned by businesses for the year 2023 is Rs 500 billion.Calculate the Gross National Income (GNI) for the year 2023. Show Answer

Q255) In a country ,the total private consumption expenditure for the year 2021 is Rs 800 billion.The total investment expenditure for the year 2021 is Rs 200 billion.The government's total expenditure on goods and services for the year 2021 is Rs 300 billion.Calculate the Gross Domestic Product (GDP) for the year 2021. Show Answer

Q256) In a country,the total private consumption expenditure for the year 2022 is Rs 900 billion.The total investment expenditure for the year 2022 is Rs 250 billion.The government's total expenditure on goods and services for the year 2022 is Rs 350 billion.Calculate the Gross Domestic Product (GDP) for the year 2022. Show Answer

Q257) In a country,the total private consumption expenditure for the year 2023 is Rs 1200 billion.The total investment expenditure for the year 2023 is Rs 300 billion.The government's total expenditure on goods and services for the year 2023 is Rs 400 billion.Calculate the Gross Domestic Product (GDP) for the year 2023. Show Answer

Q258) In a country,the total private consumption expenditure for the year 2021 is Rs 800 billion.The gross private domestic investment for the year 2021 is Rs 200 billion.The government expenditure on goods and services for the year 2021 is Rs 300 billion,and the net exports (exports minus imports) for the year 2021 are -Rs 100 billion.Calculate the Gross Domestic Product (GDP) for the year 2021. Show Answer

Q259) In a country ,the total private consumption expenditure for the year 2022 is Rs 1200 billion.The gross private domestic investment for the year 2022 is Rs 300 billion.The government expenditure on goods and services for the year 2022 is Rs 400 billion,and the net export (exports minus imports) for the year 2022 are Rs 150 billion.Calculate the Gross Domestic Product (GDP) for the year 2022. Show Answer

Q260) In a country,the total private consumption expenditure for the year 2023 is Rs 1500 billion.The gross private domestic investment for the year 2023 is Rs 400 billion.The government expenditure on goods and services for the year 2023 is Rs 500 billion,and the net exports (exports minus imports) for the year 2023 are -Rs 200 billion.Calculate the Gross Domestic Product (GDP) for the year 2023. Show Answer

Q261) The System of Regional Accounts in India provides economic data at which level of geographical aggregation?
Show Answer

Q262) Which government agency is responsible for preparing the System of Regional Accounts in India? Show Answer

Q263) The System of Regional Accounts in India provides data on which of the following aspects at the state level?
Show Answer

Q264) Which of the following is NOT a primary purpose of the System of Regional Accounts in India? Show Answer

Q265) which statistical yearbook published by the CSO includes the data and analysis on the System of Regional Accounts in India? Show Answer

Q266) What is the primary purpose of the System of Regional Accounts in India? Show Answer

Q267) Which organization is responsible for preparing the System of Regional Accounts in India? Show Answer

Q268) Which of the following indicators is NOT covered in the System of Regional Accounts in India? Show Answer

Q269) Which method is used for estimating the Gross State Domestic Product(GSDP) in India? Show Answer

Q270) The System of Regional Accounts in India provides data at which level of geographical aggregation? Show Answer

Q271) Gross Domestic Product (GDP) measures: Show Answer

Q272) Which of the following statements is true regarding the relationship between GDP and welfare? Show Answer

Q273) Which of the following factors is NOT considered in the calculation of GDP? Show Answer

Q274) Which of the following situation can lead to a discrepancy between GDP growth and citizens' well-being? Show Answer

Q275) Which of the following is a limitation of using GDP as a measure of welfare? Show Answer

Q276) Gross Domestic Product (GDP) is a measure of: Show Answer

Q277) Which of the following statements is true regarding GDP and welfare? Show Answer

Q278) Which of the following is an example of a limitation of using GDP as a measure of welfare? Show Answer

Q279) Which term refers to the total GDP adjusted for inflation or changes in price levels? Show Answer

Q280) Which of the following factors is NOT considered in GDP calculations? Show Answer

Q281) Which of the following is a limitation of using Gross Domestic Product (GDP) as a measure of economic welfare? Show Answer

Q282) Which factor can lead to an overestimation of country's GDP? Show Answer

Q283) Which aspects is not adequately captured by GDP,making it an incomplete measure of economic performance? Show Answer

Q284) Which challenge arises due to the difficulty of accurately measuring the informal or underground economy? Show Answer

Q285) Which of the following is NOT a limitation of using GDP as a measure of well-being? Show Answer

Q286) Which of the following is a limitation of using National Income as a measure of economic welfare? Show Answer

Q287) Which challenge arises due to the existence of the informal or underground economy? Show Answer

Q288) Which of the following is a limitation of using GDP as an indicator of well-being terms of environmental sustainability? Show Answer

Q289) Which limitation of National Income computation arises due to the exclusion of non-market activities and household production? Show Answer

Q290) Which challenge arises due to the constant changes in the structure of the economy and the introduction of new goods and services? Show Answer

Q291) What is the central position of Keynesian theory regarding the determination of national income ? Show Answer

Q292) During a recession,Keynesian economics recommend which of the following policies to stimulate economic growth and increase national income? Show Answer

Q293) In the Keynesian model,what is the role of private investment in determining national income? Show Answer

Q294) According to the Keynesian theory,what can lead to a situation of "underemployment equilibrium" in an economy? Show Answer

Q295) Which of the following represents the primary tool for the government to influence aggregate demand ad stabilize the economy ,according to Keynesian economics? Show Answer

Q296) Who is the main proponent of the Keynesian theory of determination of National Income? Show Answer

Q297) According to Keynesian theory, what determines the level of employment and output in an economy? Show Answer

Q298) The central idea of the Keynesian theory is that: Show Answer

Q299) According to Keynes ,what can lead to a situation of "effective demand deficiency" in the economy? Show Answer

Q300) Keynesian theory suggests that during an economic downturn,the government should implement: Show Answer

Q301) Keynes argued that during periods of economic recession or depression,the government should: Show Answer

Q302) The concept of "Multiplier Effect" in the Keynesian theory suggest that: Show Answer

Q303) According to Keynes ,in situations of insufficient aggregate demand,the economy may experience: Show Answer

Q304) In a simple two-sector model of the circular flow,the two-sector are: Show Answer

Q305) In the circular flow model,which sector is the ultimate consumer of goods and services? Show Answer

Q306) In the circular flow model ,which sector supplies factors of production to business firms? Show Answer

Q307) Which of the following flows represent the payment made by business firms to households for providing factors of production? Show Answer

Q308) In the circular flow model,which sector provides funds to business firms for investment purposes? Show Answer

Q309) In the circular flow model,households are the: Show Answer

Q310) Which of the following best represents the flow of goods and services in the circular flow model? Show Answer

Q311) Savings in the circular flow model refer to: Show Answer

Q312) In the circular flow model,the total value of goods and services produced in the economy is measured by: Show Answer

Q313) In the circular flow model,households receive income in the form of : Show Answer

Q314) Which component of the circular flow represents the total spending by households on goods and services? Show Answer

Q315) In the two-sector circular flow model,saving by households are equal to: Show Answer

Q316) The circular flow model assumes that all income earned by households is either spent on consumption or saved,and there is no: Show Answer

Q317) In economics,the study of how individuals and societies allocate limited resources to satisfy their unlimited wants is known as: Show Answer

Q318) The total value of all final goods and services produced within a country's borders during a specific time period is known as: Show Answer

Q319) Which of the following is NOT a factor of production in economics? Show Answer

Q320) The price at which the quantity demanded of a good or service equals the quantity supplied is known as: Show Answer

Q321) The study of how individual and firms make decisions and interact in markets is known as: Show Answer

Q322) Which of the following is a basic concept in economics that refer to the limited nature of resources? Show Answer

Q323) Opportunity cost is defined as: Show Answer

Q324) Which function of money refers to money serving as a medium of exchange in transaction? Show Answer

Q325) The Consumer Price Index (CPI) is a measure of: Show Answer

Q326) The total market value of all final goods and services produced within a country's borders during a specific time period is known as: Show Answer

Q327) The measure of the responsiveness of quantity demanded of a good to a change in its price is known as: Show Answer

Q328) Which type of unemployment occurs when there is a temporary mismatch between job seekers and available job vacancies? Show Answer

Q329) In an economy,the Aggregate Demand(AD) function is represent as AD=1000-100P,where P is the price level.calculate the Aggregate Demand when the price level is Rs 5. Show Answer

Q330) In an economy,the Aggregate Demand (AD) function is represent as AD=2500-150P,where P is the price level.Calculate the Aggregate Demand when the price level is Rs 10 Show Answer

Q331) In an economy,the Aggregate Demand (AD) function is represented as AD=3000- 100P, where P is the price level.Calculate the Aggregate Demand when the price level is Rs 15. Show Answer

Q332) In an economy,the aggregate demand (AD) function is represented as AD=2000-100P,where P is the price level.Calculate the equilibrium level of aggregate demand when the price level (P) is Rs 15. Show Answer

Q333) In an economy,the consumption function is represented as C=500+0.8Y,where Y is the disposable income.Calculate the level of consumption when the disposable income (Y) is Rs 2000. Show Answer

Q334) In an economy,the consumption function is represented as C=500+0.8Y,where C is consumption and Y is disposable income.Calculate the level of consumption when disposable income (Y) is Rs 1000 Show Answer

Q335) In an economy,the consumption function is represented as C=1000+0.8Y,where Y is the disposable income.Calculate the level of consumption when the disposable income (Y) is Rs2000. Show Answer

Q336) In an economy,the consumption function is represented as C=800+0.6Y,where Y is the disposable income.Calculate the level of consumption when the disposable income (Y) is Rs 3000 Show Answer

Q337) In an economy,the consumption function is represented as C=800+0.6Y,where Y is the disposable income.Calculate the level of consumption when the level of consumption when the disposable income (Y) is Rs 2500. Show Answer

Q338) In an economy,the consumption function is represented as C=1000+0.8Y,where C is the consumption and Y is the disposable income.Calculate the level of consumption when the disposable income (Y) is Rs 5000. Show Answer

Q339) In an economy,the consumption function is represented as C=1000+0.6Y,where C is the consumption and Y is the disposable income.Calculate the level of saving when the disposable income(Y) is Rs 4000. Show Answer

Q340) In an economy,the consumption function is represented as C=800+0.6Y,where C is the consumption,Y is the disposable income,and S is the saving.Calculate the level of saving when the disposable income (Y) is Rs 2000. Show Answer

Q341) In an economy,the consumption function is represented as C=1000+0.6Y,where C is the consumption,and Y is the disposable income (Y) is Rs 4000. Show Answer

Q342) In an economy,the short-run aggregate supply (SRAS) curve is represented as SRAS=1500+0.5P,where P is the price level.Calculate the level of aggregate supply when the price level(P) is Rs 10. Show Answer

Q343) In an economy,the short-run aggregate supply (SRAS) curve is represented as SRAS=2000+100P,where P is the price level.Calculate the level of aggregate supply when the price level (P) is Rs 10. Show Answer

Q344) In an economy,the aggregate supply (AS) function is represented as AS=2000+100P,where P is the price level.Calculate the level of aggregate supply when the price level (P) is Rs 10. Show Answer

Q345) In the two-sector model of National Income determined,the two main sectors are: Show Answer

Q346) In the two-sector model,the total output produced by firms is either consumed by households or: Show Answer

Q347) In the two-sector model,the total income earned by households is either spent on consumption or: Show Answer

Q348) In the two-sector model,the equilibrium level of National Income occurs when: Show Answer

Q349) If total consumption in the two-sector model is greater than total income,the economy will experience: Show Answer

Q350) In the two-sector model,the income earned by households is allocated between: Show Answer

Q351) In the two-sector model ,the equilibrium condition is achieved when: Show Answer

Q352) If in the two-sector model,consumption exceeds income,it would result in: Show Answer

Q353) In the two-sector model,investment is assumed to be: Show Answer

Q354) In the two-sector model,the total income earned by households is divided into two components :consumption expenditure (C) and: Show Answer

Q355) The equilibrium condition in the two-sector model occurs when: Show Answer

Q356) If,in the two-sector model,aggregate savings are greater than aggregate investment,the economy is in: Show Answer

Q357) The formula for calculating national income(Y) in the two-sector model is: Show Answer

Q358) In an economy, the aggregate demand(A(d) function is represented as AD = 2000 - 100P,and the short-run aggregate supply (SRAS) function is represented as SRAS = 1000 + 150P.Calculate the equilibrium price level (P) and output level when the economy is at equilibrium. Show Answer

Q359) In an economy,the aggregate demand (AD) and short-run aggregate supply (SRAS) functions are given by AD=2000-100P and SRAS=1000+150P,where P is the price level.Calculate the equilibrium price level and output level. Show Answer

Q360) In an economy ,the aggregate demand(A(d) function is represented as AD=2000-100P,and the short-run aggregate supply (SRAS) function is represented as SRAS=500+100P.Calculate the equilibrium price level and output level in the economy. Show Answer

Q361) The investment multiplier measures the relationship between: Show Answer

Q362) The formula to calculate the investment multiplier is : Show Answer

Q363) If the Marginal Propensity to Save (MPS) is 0.2,what is the value of the investment multiplier? Show Answer

Q364) The investment multiplier indicates that an increase in investment of a certain amount will lead to a/an: Show Answer

Q365) The investment multiplier assumes that: Show Answer

Q366) The investment multiplier measures the: Show Answer

Q367) The value of the investment multiplier is calculated as: Show Answer

Q368) If the Marginal Propensity to Consume (MPC) is 0.8,the value of the investment multiplier would be: Show Answer

Q369) The investment multiplier is based on the idea that an initial change in investment: Show Answer

Q370) If the investment multiplier is 4,a Rs 100 million increase in investment will lead to a total increase in national income of: Show Answer

Q371) In the three-sector model,the three main sectors of the economy are: Show Answer

Q372) In the three-sectors model,the equilibrium condition occurs when: Show Answer

Q373) The formula for calculating the equilibrium level of income (Y) in the three-sector model is: Show Answer

Q374) If in the three-sector model,total consumption is Rs 800,total investment is Rs 200 million,government expenditure is Rs 300 million,and net exports are Rs 50 million,the equilibrium level of income (Y) would be: Show Answer

Q375) If in the three-sector model,total consumption is Rs 500 million,total investment is Rs 300 million,government expenditure is Rs 200 million,and net export are -Rs 50 million (trade deficit),the equilibrium level of income (Y) would be: Show Answer

Q376) In a three-sector model,the three main sectors of the economy are: Show Answer

Q377) In a three-sector model,the equilibrium condition occurs when: Show Answer

Q378) If ,in the three-sector model,aggregate consumption is greater than aggregate income,the economy is in: Show Answer

Q379) The formula for calculating the equilibrium level of income (Y) in a three-sector model is: Show Answer

Q380) The concept of the marginal propensity to import (MPM) in a three-sector model refers to: Show Answer

Q381) The formula for calculating national income (Y) in the three-sector model is: Show Answer

Q382) In the three-sector model,the total income earned by households is divided into three components:consumption expenditure (C),savings (S),and: Show Answer

Q383) The equilibrium condition in the three-sector model occurs when: Show Answer

Q384) If,in the three-sector model,aggregate consumption and taxes are greater than aggregate income,it indicates that: Show Answer

Q385) In an economy,the government purchases of goods and services (G) are Rs 500 billion,taxes (T) are Rs 300, transfer payments (TR) are Rs 100 billion,and the disposable income (YD) is Rs 1500 billion.Calculate the level of government savings or dissavings. Show Answer

Q386) In an economy, the government increases its spending on infrastructure projects and welfare programs. As a result, the government expenditure (G) increases by 100 billion. How will this increase in government expenditure affect the equilibrium level of income in the economy assuming the marginal propensity to consume (MPC) is 0.8? Show Answer

Q387) In an economy, the government increases its spending on infrastructure projects and welfare programs. As a result, the government expenditure (G) increase by Rs 200 billion.How will this increase in government expenditure affect the equilibrium level income (Y) in the economy,assuming a simple Keynesian model? Show Answer

Q388) In an economy ,the government purchases (G) are Rs 500 billion,taxes (T) are Rs 300 billion,transfer payments (TR) are Rs 100 billion,and the disposable income (YD) is Rs 1800 billion,Calculate the level of government savings or dissavings (Sg). Show Answer

Q389) In the four-sector model, the total income earned by households is divided into four components : consumption expenditure (C), savings (S), Taxes (T), and : Show Answer

Q390) The equilibrium condition in the four-sector model occurs when: Show Answer

Q391) If,in the four-sector model,aggregate consumption and taxes are greater than aggregate income,it indicates that: Show Answer

Q392) In the four-sector model,the net exports (NX) component represents: Show Answer

Q393) The formula for calculating national income (Y) in the four-sector model is: Show Answer

Q394) In the four-sector model,the four main sectors of the economy are: Show Answer

Q395) In the four-sector model,the total income earned by households is divided into four components:consumption expenditure ((c),savings(S),taxes(T),and: Show Answer

Q396) The equilibrium condition in the four-sector model occurs when: Show Answer

Q397) If,in the four-sector model,aggregate consumption,taxes,and imports are greater than aggregate income,it indicates that: Show Answer

Q398) The formula for calculating national income (Y) in the four-sector model is: Show Answer

Q399) According the Keynesian theory,during an economic recession,the government should: Show Answer

Q400) The Keynesian theory emphasizes that in times of economic downturns,the primary cause of unemployment is: Show Answer

Q401) The concept of the "Multiplier Effect" in the Keynesian theory suggests that: Show Answer

Q402) According to the Keynesian theory,during periods of high inflation,the government should focus on: Show Answer

Q403) The Keynesian theory highlights that during economic downturns, there may be a role for the government to engage in : Show Answer

Q404) If the Marginal Propensity to Consume (MPC) is 0.8, the value of the investment multiplier will be: Show Answer

Q405) The investment multiplier can be used to calculate the total change in income when there is an autonomous increase in investment.Autonomous investment refers to investment that: Show Answer

Q406) If the investment multiplier is 3,an initial increase in investment of Rs 100 million will lead to a total increase in national income of: Show Answer

Q407) The investment multiplier measures the: Show Answer

Q408) The formula for calculating the investment multiplier is: Show Answer

Q409) The interest rate at which a central bank lends money to commercial banks is known as: Show Answer