UNIT-NATIONAL INCOME
Vidhi Narula UNIT-NATIONAL INCOME
All questions are compulsory
What is National Income?
Income earned by individuals in a nation
Total value of goods and services produced in a nation
Income earned by the government
Total value of exports in a nation
Which of the following is not a factor of National Income?
Land
Labor
Capital
Imports
Which of the following is an example of transfer income?
Salary
Pension
Rent
Interest
What is the formula to calculate National Income?
GDP + Net Factor Income from Abroad
GDP + Net Indirect Taxes - Net Subsidies
GDP + Personal Income Taxes - Undistributed Corporate Profits
GDP + Net Foreign Factor Income
Which of the following is not a method to calculate National Income?
Income method
Expenditure method
Production method
Distribution method
Which of the following is not included in National Income?
Dividends
Profits
Taxes
Subsidies
Which sector does not contribute to National Income?
Agriculture
Manufacturing
Service
Imports
What is the main objective of calculating National Income?
To measure economic growth
To calculate profit
To determine government revenue
To control inflation
Which of the following is an example of non-market activity?
Selling groceries
Homemaking
Running a factory
Offering consultancy services
What is included in the Gross Domestic Product (GDP) of a country?
Only government spending
Only exports
Consumption, investment, government spending, and net exports
Only consumption
Which of the following is a measure of the total economic output of a country?
GDP
CPI
Unemployment rate
Inflation rate
What is the income received by households for providing factors of production in the production process called?
Profit
Wages
Interest
Rent
Which of the following is an example of a transfer payment?
Social Security benefits
Salary payment
Dividend payment
Interest payment
What is the difference between GDP and GNP?
GDP includes only domestic production, while GNP includes foreign production
GDP includes foreign production, while GNP includes only domestic production
GDP measures total output, while GNP measures total income
GDP measures total income, while GNP measures total output
Which of the following is a type of depreciation in National Income Accounting?
Wear and tear
Inflation
Interest
Dividends
What is the significance of calculating National Income?
To measure the standard of living
To determine the level of inflation
To calculate government debt
To assess foreign exchange rates
What is the main source of revenue for the government in National Income Accounting?
Taxes
Exports
Investment
Transfers
What is included in the calculation of Gross National Product (GNP)?
Gross Domestic Product (GDP) minus depreciation
Gross Domestic Product (GDP) plus net foreign factor income
Net National Product (NNP) plus indirect taxes
Net Domestic Product (NDP) minus net foreign factor income
Which of the following is a component of National Income?
Personal income
Disposable income
Corporate profits
All of the above
What does the term 'National Income' represent?
Total value of goods and services produced within a country in a year
Total income earned by the citizens of a country in a year
Total value of exports minus imports of a country
Total savings of the citizens in a country
Which of the following is not included in the calculation of National Income?
Government transfer payments
Corporate profits
Value of intermediate goods
Value of final goods and services
What is the formula to calculate Gross National Product (GNP)?
GDP - Net Foreign Factor Income
GDP + Net Foreign Factor Income
GDP - Depreciation
GDP + Depreciation
Which of the following is a measure of National Income that includes depreciation?
Gross Domestic Product (GDP)
Net Domestic Product (NDP)
Net National Product (NNP)
Gross National Product (GNP)
What is the difference between Gross Domestic Product (GDP) and Gross National Product (GNP)?
GDP includes net foreign factor income, while GNP does not
GDP excludes net foreign factor income, while GNP includes it
GDP is calculated at market prices, while GNP is calculated at factor cost
GDP measures the total output within a country, while GNP measures the total income of residents and businesses
What is the relationship between Gross Domestic Product (GDP) and Gross National Product (GNP)?
GDP = GNP - Net Foreign Factor Income
GDP = GNP + Net Foreign Factor Income
GDP = GNP - Depreciation
GDP = GNP + Depreciation
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