National Income Accounting Class 12 MCQs Questions with Answers
Question 1.
The subject of the Study of Macro Economics is:
(a) The Principle of National Income
(b) The Principle of Consumer
(c) The Principle of Producer
(d) None of these
Answer
Answer: (a) The Principle of National Income
Question 2.
Macro Economics Studies:
(a) Employment opportunities in economy
(b) Theory of supply of Commodities
(c) Elasticity of demand in Scooter
(d) Price of wheat in market
Answer
Answer: (a) Employment opportunities in economy
Question 3.
General Price Level is studied in:
(a) Micro Economics
(b) Macro Economics
(c) Both (a) and (b)
(d) None of these
Answer
Answer: (b) Macro Economics
Question 4.
Employment Theory is related to :
(a) Static Economics
(b) Micro Economics
(c) Macro Economics
(d) None of these
Answer
Answer: (c) Macro Economics
Question 5.
Increase in Stock of Capital is known as:
(a) Capital Loss
(b) Capital Profit
(c) Capital Formation
(d) None of these
Answer
Answer: (c) Capital Formation
Question 6.
Which of the following is sPktock ?
(a) Wealth
(b) Saving
(c) Export
(d) Profit
Answer
Answer: (a) Wealth
Question 7.
Which one of the following is included in circular flow ?
(a) Real Flow
(b) Money Flow
(c) Both (a) and (b)
(d) None of these
Answer
Answer: (c) Both (a) and (b)
Question 8.
Which one of the following is included in ‘Stock’ ?
(a) Quantity of Money
(b) Wealth
(c) Quantity of wheat stored in warehouse
(d) All the above
Answer
Answer: (d) All the above
Question 9.
Which one is included in flow ?
(a) Consumption
(b) Investment
(c) Income
(d) All of these
Answer
Answer: (b) Investment
Question 10.
Which of the following is included in real flow ?
(a) Flow of Goods
(b) Flow of Services
(c) Both (a) and (b)
(d) None of these
Answer
Answer: (c) Both (a) and (b)
Question 11.
Which services are provided by families to a firm ?
(a) Land
(b) Labour
(c) Capital and Enterprises
(d) All the above
Answer
Answer: (d) All the above
Question 12.
Which one is included in three-sector model ?
(a) Family
(b) Firm
(c) Government
(d) All of these
Answer
Answer: (d) All of these
Question 13.
Which one is included in four-sector model ?
(a) Family, Firm, Industry
(b) Family, Firm, Government
(c) Family, Firm, Government, Foreign Sector
(d) None of the above
Answer
Answer: (c) Family, Firm, Government, Foreign Sector
Question 14.
Which is the equilibrium condition of circular flow in four sector model ?
(a) C + I
(b) C + I + G
(c) C + I + G + (X-M)
(d) None of these
Answer
Answer: (c) C + I + G + (X-M)
Question 15.
Primary sector includes:
(a) Agriculture
(b) Retail trading
(c) Small Industries
(d) All the these
Answer
Answer: (d) All the these
Question 16.
For a four sector or open economy the condition for equilibrium is:
(a) Savings + taxes + Imports = Investment + govt, expenditure + exports
(b) Total Leakages = Total Injections
(c) Aggregate output = Aggregate Expenditure
(d) All of these
Answer
Answer: (d) All of these
Question 17.
Which service is included in Tertiary Sector ?
(a) Mining
(b) Construction
(c) Communication
(d) Animal Husbandary
Answer
Answer: (c) Communication
Question 18.
Which of the following is not flow ?
(a) Capital
(b) Income
(c) Investment
(d) Depreciation
Answer
Answer: (a) Capital
Question 19.
The market price of all final goods of a country in a year is known as:
(a) GDPMP
(b) GDPFC
(c) NNPFC
(d) None of these
Answer
Answer: (a) GDPMP
Question 20.
Which one is true ?
(a) GNP = GDP + Depreciation
(b) NNP = GNP + Depreciation
(c) NNP = GNP – Depreciation
(d) GNP = NNP – Depreciation
Answer
Answer: (c) NNP = GNP – Depreciation
Question 21.
GNPMp =?
(a) GDPMp – Depreciation
(b) GDPMp + Net Factor Income from Abroad
(c) GNPMp + Subsidy
(d) None of the above
Answer
Answer: (b) GDPMp + Net Factor Income from Abroad
Question 22.
NNPMP = ?
(a) GNPMp – Depreciation
(b) GNPMp + Depreciation
(c) GNPMp + Indirect Tax
(d) None of the above
Answer
Answer: (a) GNPMp – Depreciation
Question 23.
Depreciation expenses are included in:
(a) GNPMp
(b) NNPMp
(c) NNPFC
(d) None of these
Answer
Answer: (a) GNPMp
Question 24.
NDPFC = ?
(a) NDPMP – Indirect Tax
(b) GNPMP – Indirect Tax + Subsidy
(c) NDPMP – Subsidy
(d) NDPMF – Depreciation
Answer
Answer: (b) GNPMP – Indirect Tax + Subsidy
Question 25.
Net National Income at Factor Cost is called ?
(a) National Income
(b) Gross Investment
(c) Domestic Income
(d) None of these
Answer
Answer: (a) National Income
Question 26.
Which one is included in National Income ?
(a) Rent, Wage, Interest
(b) Rent, Wage, Salary
(c) Rent, Profit, Interest
(d) Rent, Wage, Salary, Interest, Profit
Answer
Answer: (d) Rent, Wage, Salary, Interest, Profit
Question 27.
What is consumption of fixed capital called ?
(a) Capital formation
(b) Depreciation
(c) Investment
(d) All of these
Answer
Answer: (b) Depreciation
Question 28.
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
Answer: (a) Disposable Income = Personal Income – Direct Taxes
Question 29.
If for a country net factor income from abroad is negative then:
(a) GDP < GNP
(b) GDP > GNP
(c) GDP ≥ GNP
(d) GDP = GNP
Answer
Answer: (b) GDP > GNP
Question 30.
The market value of all final goods and services produced in an economy over a year is called :
(a) Gross National Product
(b) National Income
(c) Gross Domestic Product
(d) Net National Product
Answer
Answer: (c) Gross Domestic Product
Question 31.
Which method is adopted in measuring National Income ?
(a) Production Method
(b) Income Method
(c) Expenditure Method
(d) All of these
Answer
Answer: (d) All of these
Question 32.
Which sector is included in an economy ?
(a) Primary
(b) Secondary
(c) Tertiary
(d) All of these
Answer
Answer: (d) All of these
Question 33.
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
Answer: (c) (a) and (b) both
Question 34.
Which one of the following services is included in Secondary Sector ?
(a) Insurance
(b) Manufacturing
(c) Trade
(d) Banking
Answer
Answer: (b) Manufacturing
Question 35.
Which one is included in Primary Sector ?
(a) Land
(b) Forest
(c) Mining
(d) All these
Answer
Answer: (d) All these
Question 36.
To include the value of goods or services more than one time while calculating National Income is called :
(a) Single Counting
(b) Double Counting
(c) Multiple Counting
(d) None of these
Answer
Answer: (b) Double Counting
Question 37.
Which one is a component of profit ?
(a) Dividend
(b) Undistributed Profit
(c) Corporate Profit Tax
(d) All of these
Answer
Answer: (d) All of these
Question 38.
Which one is included in National Income ?
(a) Transfer Earnings
(b) Sale proceeds of Shares and Bonds
(c) Black Money
(d) None of the Above
Answer
Answer: (d) None of the Above
Question 39.
Which one is included in the calculation of National Income ?
(a) New Final Goods and Services
(b) Earned Income of Indian Companies in Abroad
(c) Expenses made by Foreign Tourists in the country
(d) All the above
Answer
Answer: (d) All the above
Question 40.
Which one is the limitation of Macro Economics ?
(a) Collective Economic Paradox
(b) Ignores Individual Units
(c) Both (a) and (b)
(d) None of these
Answer
Answer: (c) Both (a) and (b)
Question 41.
Macro-economics is the study of:
(a) Principle or Theories of national income
(b) Consumer’s theory
(c) Production theory
(d) None of these.
Answer
Answer: (a) Principle or Theories of national income
Question 42.
Out of the following which is not a flow:
(a) Capital
(b) Income
(c) Investment
(d) Depreciation.
Answer
Answer: (a) Capital
Question 43.
From the following which method is used for measuring national income:
(a) Production method
(b) Income method
(c) Expenditure method
(d) All of the above.
Answer
Answer: (d) All of the above.
Question 44.
Which of the following is included in the primary sector:
(a) Land
(b) Forest
(c) Mines
(d) All of the above.
Answer
Answer: (d) All of the above
Question 45.
Total national income divided by total population is known as:
(a) Private income
(b) Personal income
(c) Personal spendable income
(d) Per capital income.
Answer
Answer: (d) Per capital income
Question 46.
Production enterprises are divided in:
(a) Two sectors
(b) Three sectors
(c) Four sectors
(d) Five sectors.
Answer
Answer: (b) Three sectors
Fill in the blanks:
1. Agriculture is included in …………… sector.
Answer
Answer: Primary
2. Pigou has divided welfare into ………….. parts.
Answer
Answer: Two
3. Chinese product is included in …………… area of the economy.
Answer
Answer: Secondary
4. National income in India is calculated by………………
Answer
Answer: Central statistical organisation
5. The total value of all final goods and services produced with in the domestic territory of a country during an accounting year is known as ……….
Answer
Answer: GDP
6. ……….. is an index of economic development of the country.
Answer
Answer: National income.
State true or false:
1. As compared to developed countries, India’s per capital income is quite less.
Answer
Answer: True
2. Black money has given birth to parallel economy in the country.
Answer
Answer: True
3. Major contribution in India’s national income is from the secondary sector.
Answer
Answer: False
4. Electricity, LPG and water supply are included in the primary sector.
Answer
Answer: False
5. Income from gifts are included in the national income.
Answer
Answer: False
6. Sale of second hand goods are not included in the national income.
Answer
Answer: True
Match the following:
| ‘A’ | ‘B’ |
| 1. Fish culture | (a) Tertiary sector |
| 2. Highest contribution in national income | (b) Year 1952 |
| 3. National income committee was established in | (c) Mixed method |
| 4. National income calculation is done by | (d) Year 1949 |
| 5. Establishment of C.S.O. | (e) Primary sector. |
Answer
Answer:
| ‘A’ | ‘B’ |
| 1. Fish culture | (e) Primary sector. |
| 2. Highest contribution in national income | (a) Tertiary sector |
| 3. National income committee was established in | (d) Year 1949 |
| 4. National income calculation is done by | (c) Mixed method |
| 5. Establishment of C.S.O. | (b) Year 1952 |