Economics-Economics National Income Accounting Set/2 Sample Test,Sample questions

  Identify the correct statement:

1. Personal disposable income excludes direct taxes paid by households

2.Capital transfers are paid from current income

3. Lottery income received by a household is factor income

4.Royalties are a part of compensation to employees

  If GNP at market prices is Rs 1200 crore and fixed capital stock is worth Rs 2000 crore which depreciates at the rate of 10% per annum and the net indirect taxes amount is Rs 150 crore. What is the national income?

1.Rs 3050 crore

2.Rs 2850 crore

3.Rs 1000 crore

4.Rs 850 crore

  If net factor income from abroad is zero then:

1.Domestic product is zero

2.National product is zero

3.National product is equal to domestic product

4.National product is constant

  Income from property is a part of:

1.Mixed income of the self-employed

2.Operating surplus

3.Compensation of employees

4.None of these

  Unilateral payments are known as:

1.Factor income

2.Factor payments

3.Transfer payments

4.Payments for productive services rendered by others

  Which of the following accounts for the difference between net domestic product at market prices and national income?

1.Net factor income from abroad

2.National debt interest

3.Net factor income from abroad minus current transfers

4.Net factor income from abroad minus indirect taxes

  Which of the following is deducted while estimating national income by the value-added method?

1.Value of goods and services produced for self-consumption

2. Imputed rental value of owner-occupied building

3. Net factor income from abroad

4.Consumption of capital

  Which of the following is incorrect?

1.GDP at market prices = NNP at factor cost plus net indirect taxes

2.NNP at factor cost = NNP at market prices minus net indirect H taxes

3.GNP at market prices = GDP at market prices plus net factor income from abroad

4.None of the above

  Which of the following is not a government transfer payment to households?



3.Family pension

4.Unemployment allowance

  Which of the following is not included while estimating national income by the expenditure methods?

1.Investment in shares of a new company

2.Defence expenditure

3.Net indirect tax

4.Net exports

 Domestic incomes refer to incomes which are generated:

1.By all the producers within the geographical territory of the country

2.By resident producers only

3.In the household sector

4.In cottage industries

 For the estimation of private income which of the following items has to be added to national income?

1. Income from property accruing to government

2.Savings of the non-departmental enterprises


4.Interest on national debt

 Gross domestic product differs from net domestic product by the amount of:

1.Government income from property

2.Net indirect taxes

3.Consumption of fixed capital

4.Net capital formation

 Net borrowings from abroad are a part of:

1.Gross domestic product

2.Net national product

3.Gross investment

4.Capital transfers

 Net national product at factor cost is :

1.Equal to national income

2.More than national income

3.Less than national income

4.Always more than the gross national product

 Which of the following has to be deducted from the value of output to arrive at the net value added by a producing enterprise?

1. Value of intermediate consumption

2.Consumption of fixed capital

3.Net indirect taxes

4. All of the above

 Which of the following includes interest on national debt?

1.National income

2.Personal income

3. Gross national product

4.Net national product

 Which of the following is an example of transfer payment by the Government?

1.Free housing accommodation to the government employees

2.Free housing accommodation to the President of India

3.National debt interest

4.Bonus paid to railway employees

 Which of the following is not an example of capital transfers between countries?

1.War damages

2.Gifts for cyclone victims

3.Economic aid

4.Grants from other governments

 Which one is an example of capital transfer within a country?

1.Compensation to residents whose houses have been damaged by floods

2.Old age pensions

3.Interest paid by consumer households on consumer loans

4.Gifts to sick and poor on festivals

Aggregate gross receipts means:

1.Turnover value of output

2.Receipts of the Government

3.Receipts of the corporate sector

4.Receipts from the rest of the world

If the general price level goes up by 12% and national income at constant prices increases by 3% then the national income at current prices:

1.Increase by 9%

2.Increase by 15%

3.Increase by 12%

4.Increase by 9%

Interest on public debt is a part of:

1.Transfer payments by the government

2.Transfer payments by enterprises

3. Domestic income

4.Interest payments by households

National income differs from the net national product at market prices by the amount of:

1.Current transfers from rest of the world

2.Net indirect taxes

3.National debt interest

4.It does not differ

Net retained earnings abroad means:

1.Income retained by a resident working abroad

2.Profits of resident companies abroad

3. Net undistributed profits of resident and non-resident companies

4. Foreign exchange reserves

The difference between net national product at market prices and net domestic product at market prices is equal to:

1. Value of exports

2.Net current transfers from abroad

3.Value of exports minus value of imports

4.Net factor income from abroad

The first estimate of national income in India was made by Dadabhai Naoroji for the year:





The term national income commonly refers to:

1.GNP at factor cost

2.GNP at market prices

3.NNP at factor cost

4.NNP at market prices

The value added method of measuring national income is also known as:

1.Net output method

2.Production method

3. Industry of origin method

4. All of the above

Transfer receipts of the Government include:

1. Sale of second hand cars by government departments

2.Direct and indirect taxes

3.Imputed rent of government buildings

4.Dividends received from public enterprises

Which of the following has to be added to national income to obtain the net national disposable income?

1.Income from property and entrepreneurship accruing to Government

2.Net current transfers from the rest of the world

3.Profits of public enterprises

4. Loans from public

While estimating national income by the income method one of the following is not included. Identify it:

1.Mixed income of the self employed

2.Inheritance tax or death duty

3.Interest on bonds of a foreign company

4. Income of employees of voluntary organisations

While estimating personal income from national income which of the following items need to be deducted?

1. Net indirect taxes

2.Direct Taxes paid by households


4.Corporate profitstax


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