Corporate tax is levied on:
1.Landlords
2.Municipal corporations
3.Joint stock companies
4.Importers
Determinants of national income are:
1.Natural resources human resources monetary resources
2.Natural resources capital resources monetary resources
3.Natural resources capital resources human resources
4.Natural resources capital resources foreign resources
Direct taxes are not included in:
1.NNP
2.PI
3.DPI
4.(a) and (c) of above
If we include it national income will be over-estimated:
1.Transfer payment
2.Income from abroad
3.Illegal income
4.Exports
It is NOT a method to measure national income:
1.Adding all expenditure
2.Adding all incomes
3.Adding value of goods and services
4. Adding all taxes
It is not included in estimation of national income:
1.Illegal income
2.ervices of house wifes
3.Imports
4.All are not included
The largest part of national income goes to:
1.Consumption
2.Investment
3.Saving
4.Transfer payment
The largest type of income in the Pakistan is:
1.Compensation f employees
2.Proprietors income
3.Rental income
4.Corporate profits
There are methods of measuring national income:
1.5
2.2
3.1
4.3
This statement is true
1.Inflation does not play any role in distribution of national income
2. Inflation plays unfavourable role in distribution of national income
3.Inflation plays favourable role in distribution of national income
4. Inflation brings equality in aggregate demand and aggregate demand and aggregate supply
Transfer payments include:
1.Daily wages pensions
2.Pensions Zakat
3.Zakat taxes
4.Taxes pocket money
Which is a flow concept:
1.Number of my shirts
2.My total wealth
3.My monthly income
4.Money supply
Which is the largest figure:
1.NNP
2.GNP
3.DPI
4.PI
Which of the following is NOT macroeconomics:
1.Inflation
2.Unemployment
3.The level of output in the economy
4.Level of wages in export industry
A TV set purchased from a retail store is an example of:
1.Intermediate good
2.Capital good
3.Surplus good
4.Final good
If C = 200 and I = 40 then Y will equal to:
1.160
2.240
3.200
4. None of these
If we compare GDP and GNP then:
1.GNP = GDP - net income from abroad
2.GNP = GDP + net income from abroad
3. GNP = NNP - net income from abroad
4.GNP = NNP + net income from abroad
It is added to GDP to get GNP
1.Depreciation allowance
2.Direct taxes
3.Subsidies
4.Net income from abroad
It is avoided to make correct estimate of national income:
1.Free services
2.Double counting
3.Export earnings
4.All of the above
It is deducted from GNP to get NNP:
1.Indirect taxes
2.Depreciation
3. Direct taxes
4.Transfer payment
To avoid double counting when GDP is estimated economists:
1.Use GDP deflator
2.Calculte value added at each stage of production
3.Use retail prices
4.Use price of only intermediate goods
Transfer payments mean:
1.Bank loans
2.The payment without work
3.Tax payments
4.Payments made to all factors of production
Undistributed profits are considered:
1. Income earned but not received
2.Income received but not earned
3.Income earned and received
4.None of the above
Which of the following is transfer payment:
1.Paument of college tuition fee
2.Payment for social security
3.Payment of interest
4.Payment for a leased car
An open economy:
1.Must be a democracy
2.Is one without taxes
3.Is that interacts with other economies
4.Means world economy
Circular flow of income links:
1.Income expenditure
2.Exports Imports
3.Govt. taxes Govt. expenditure
4.Saving and investment
GDP stands for:
1.Great domestic progress
2.Grand development plan
3. Gross domestic product
4.Gross domestic plan
Gross national product is:
1.Total annual monetary receipts by the prople
2.Total annual spending in the economy
3.Total market value of final goods and services produced by the economy
4.All of the above
If government increases taxes private savings:
1.Increase
2.Decrease
3.Become negative
4.Do not change
If savings exceed investment then:
1.National income rises
2.National income falls
3.National income is not affected
4.None of the above
If we deduct direct taxes from personal income we get
1.Net national income
2.Personal saving
3.Disposable income
4.Percapita income
In economics persons having a joint family budget are called:
1.Community
2.Gathering
3.Household
4.Organization
In equilibrium position of national income:
1.S > 1
2.S < 1
3. S = 1
4.All are true
Investment spending includes the purchase of:
1.Stocks (shares)
2.Government bonds
3.Residential construction
4.All of the above
It is transfer payment:
1.Payment of pocket money to children
2.Financial support to old parents
3.Broker s commission in some auction
4. (a) and (c) of above
Macroeconomics is concerned with:
1. Aggregate economic activity
2.Individual decision units
3.How to produce goods
4.How to buy stocks and bonds
National income is estimated by:
1.Product import and export methods
2.Product income and consumption methods
3.Product income and market methods
4.Product income and expenditure methods
National income of a country does not include:
1.Self services low wages
2.Donations and high salaries
3. Corporate taxes and gifts
4.Illegal incomes and unreported incomes
Personal income includes:
1.Direct taxes
2.Indirect taxes
3.Depreciation
4.None of the above
Personal income includes:
1.Transfer payments
2.Indirect taxes
3.Depreciation
4.All of the above
Select the correct statement:
1.Transfer payment are included in national income
2.Depreciation allowance is a part of GNP
3. Taxes are not included in NNP
4.GDP means Gross Direct Production
The goods which are used directly by the people are called:
1.Consumer goods
2.Capital good
3.Direct good
4.None of these
This statement is true
1. NI = rent + interest + wages + profit
2.NI = rent + interest + wages + taxes
3. NI = Govt. expenditure + interest + wages + profit
4.NI = rent + interest + wages + pensions
Total value of all final goods and services produced in a country during one year is:
1.NNP
2.GNP
3.GDP
4.NI
We measure national income by this method:
1.Expenditure method
2. Income method
3.Product method
4.Any of the above
When national income is estimated by expenditure method we include:
1.All govt. expenditure
2. All household expenditure
3.All expenditure of the business sector
4.All of the above
Which measure has the larger value (for Pakistan):
1.NNP
2.GNP
3.GDP
4.NI
Which of the following is counted in GDP:
1.Sale of used car
2.Purchase of shares of PSO (company)
3.A TV set produced this year but not sold
4.The leisure enjoyed by people
Which of the following would NOT be included in GNP:
1.Government support to the very poor
2.Government purchase of an airplane
3.Payment for construction of highway
4.The salary paid for the President s secretary
Which statement is true?
1.NNP = GNP - Depreciation
2. NNP = NI
3.NNP - DPI
4. None of these
Which statement is true?
1.Nationl Expenditure = National income
2. Nationl Expenditure = National income + National savings
3.Nationl Expenditure = National income + Taxes
4.Nationl Expenditure = National income - Taxes
Which statement is true?
1. National Income = National expenditure - indirect taxes
2. NI = GNP - NNP
3. NI = NNP - indirect taxes
4.NI = PI