Economics/Economics National Income MCQS Set-1 Sample Test,Sample questions

Question:
  Corporate tax is levied on: 

1.Landlords

2.Municipal corporations

3.Big companies

4.Importers

Posted Date:-2021-08-14 00:06:53


Question:
  GNP includes: 

1.A loan from a bank

2.Al loan from one s parents

3.Gifts and donations

4.A broker s commission

Posted Date:-2021-08-14 00:06:53


Question:
  GNP is always: 

1.Less than NNP

2.Greater than NNP

3.Equal to NNP

4.Greater in many years but less in others

Posted Date:-2021-08-14 00:06:53


Question:
  If government increases taxes  private savings: 

1.Increase

2.Decrease

3.Do not change

4. None of the above

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Question:
  In calculating national income which one will not be included: 

1.Exports

2.Undistributed by firms

3.Wages of a lecturer

4.Old age pensions

Posted Date:-2021-08-14 00:06:53


Question:
  In economics  one or more persons living in a joint family are called a: 

1.Business firm

2.Social gathering

3.Super family

4.Household

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Question:
  In terms of national income accounts  multiple counting refers to: 

1.The addition to GNP of multiple units of a good

2. Counting currently produced goods more than once

3.The inclusion in GNP of gross spending and taxes

4.Counting both goods and services

Posted Date:-2021-08-14 00:06:53


Question:
  It is considered as transfer payment: 

1.Salary of an employee

2.Bouus paid to bank employees

3.Payment of house rent

4.Unemployment allowance paid by govt.

Posted Date:-2021-08-14 00:06:53


Question:
  It is deducted from GNP to find NNP: 

1.Savings

2.Direct taxes

3.Depreciation allowance

4.Subsidies

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Question:
  It is transfer payment: 

1.Payment of college tuition

2.A social security payment

3.Interest paid for a bank loan

4.Payment for a leased car

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Question:
  It is transfer payment: 

1.Bus fare

2.College fee

3.Pension

4.Salary

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Question:
  This is NOT a method of measure national income: 

1.By adding all incomes

2.By adding all expenditure

3. By adding money value of all production

4.By adding all money supply in the country

Posted Date:-2021-08-14 00:06:53


Question:
  Undistributed profits are considered: 

1.Income earned but not received

2.Income received but not earned

3.ncome earned and received

4.None of the above

Posted Date:-2021-08-14 00:06:53


Question:
  When National income is estimated by expenditure method  we include: 

1.All govt. expenditure

2.All households expenditure

3.All expenditure of the business sector

4.All of the above

Posted Date:-2021-08-14 00:06:53


Question:
 A country is poor if it has: 

1.Less production of goods per capita

2.Less amount of gold

3.Less amount of foreign currency

4.Less exports

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Question:
 A TV set purchased from a retail store is an example of: 

1.Intermediate good B

2.Capital goods

3. Surplus goods

4.Final goods

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Question:
 Direct taxes are not included in: 

1.NNP

2.PI

3.DPI

4.(a) and (c) of above

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Question:
 Govt. transfer payment include: 

1.Social security benefits

2.Welfare benefits

3.Student scholarships

4.All of the above

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Question:
 If C=200 and I = 40 then Y will equal to: 

1.160

2.240

3.200

4. None of the above

Posted Date:-2021-08-14 00:06:53


Question:
 It is counted in GDP: 

1.Sale price of an old car

2.Purchase of 100 shares of PSO

3.A TV set produced this year but not sold

4.The leisure people consume

Posted Date:-2021-08-14 00:06:53


Question:
 National Income is: 

1.Total income spent in the economy

2. Sum of disposable personal income and saving

3.NNP minus the capital consumption allowance

4.Total income earned in producing the national product

Posted Date:-2021-08-14 00:06:53


Question:
 Net exports are: 

1.Total exports plus total imports

2.Total exports minus total imports

3.Total imports minus total exports

4.Total exports divided by total imports

Posted Date:-2021-08-14 00:06:53


Question:
 Net Investment is: 

1.Gross Investment minus household Investment

2.Gross Investment minus govt. Investment

3.Gross Investment minus capital consumption allowance

4.None of the above

Posted Date:-2021-08-14 00:06:53


Question:
 Select the correct statements: 

1.Transfer payments 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

Posted Date:-2021-08-14 00:06:53


Question:
 Traffic fines are: 

1.Part of personal consumption spending

2.Excluded from national income accounts

3.Included in NI but not in PI

4.Included in PI but not in Disposable PI

Posted Date:-2021-08-14 00:06:53


Question:
 Which is a flow concept: 

1.Number of my shirts

2.My monthly income

3.My total wealth

4.Money supply

Posted Date:-2021-08-14 00:06:53


Question:
 Which of the following is not macroeconomics: 

1.Inflation

2.Unemployment

3.The level of output in the economy

4.Level of wages in garment industry

Posted Date:-2021-08-14 00:06:53


Question:
 Which of the following would increse level of national income? 

1.An increase in taxation

2. A reduction in government spending

3.A reduction in consumer spending

4.An increase in exports

Posted Date:-2021-08-14 00:06:53


Question:
 Which statement is true? 

1.NNP = GNP - Depreciation

2.NNP = NI

3.NNP = DPI

4.None of these

Posted Date:-2021-08-14 00:06:53


Question:
 Which statement is true? 

1.National Expenditure = National income

2.National Expenditure = National income + National production

3.National Expenditure = National income + National Taxes

4.National Expenditure = National income - Taxes

Posted Date:-2021-08-14 00:06:53


Question:
A closed economy is best described as one in which: 

1.There are no monopolies

2.No corporations

3.No externalities

4.No international trade

Posted Date:-2021-08-14 00:06:53


Question:
A country is poor if it has: 

1.Less amount of gold

2.Less amount of local currency

3.Less amount of foreign currency

4.Less GNP per capita

Posted Date:-2021-08-14 00:06:53


Question:
Consumption spending does not include: 

1.Household s purchase of food

2.Household s purchase of car

3.Household s payment of rent for an apartment

4.Household s purchase of stock in any XYZ corporation

Posted Date:-2021-08-14 00:06:53


Question:
GNP is always: 

1.Less than NNP

2.Greater than NNP

3.Equal to NNP

4.Any of (a) (b) (c)

Posted Date:-2021-08-14 00:06:53


Question:
GNP is: 

1.Total sales in the economy

2.Total monetary transactions in an economy

3.Total monetary transactions in an economy

4.Total monetary transactions in an economy

Posted Date:-2021-08-14 00:06:53


Question:
Gross national product includes: 

1.A loan from one s parents

2. A loan from a domestic bank

3.A loan from other countries

4.None of the above

Posted Date:-2021-08-14 00:06:53


Question:
If indirect taxes are deducted from NNP and subsidies are added  we achieve: 

1.Personal savings

2.DPI

3.NI

4.Per capita income

Posted Date:-2021-08-14 00:06:53


Question:
If we deduct direct tax from personal income  we get: 

1. Net national income

2.Personal saving

3.Disposable income

4.Per capita income

Posted Date:-2021-08-14 00:06:53


Question:
In circular flow model  

1.Households own the resources

2.There are never international transactions

3.Household income is limited to wages and salaries

4.Financial markets ensure that the federal govt. s budget is balanced annually

Posted Date:-2021-08-14 00:06:53


Question:
Investment spending includes the purchase of: 

1.Stocks

2.Govt. bonds

3.Residential construction

4.All of the above

Posted Date:-2021-08-14 00:06:53


Question:
It is considered as investment in national accounting: 

1.Construction of a house

2.Purchase of a running hotel

3.Purchase of a new shirt

4.Increase in salaries of professors

Posted Date:-2021-08-14 00:06:53


Question:
It is considered as investment: 

1.Construction of a house

2.Purchase of an old house

3. Salaries of college professors

4.Both (a) & (b)

Posted Date:-2021-08-14 00:06:53


Question:
It is considered as transfer payments: 

1.Salaries of employees

2.Bonus of bank employees

3. Free medical care to officers

4.Unemployment allowance paid by govt.

Posted Date:-2021-08-14 00:06:53


Question:
It is deducted from GNP to get NNP: 

1.Indirect taxes

2.Depreciation

3.Direct taxes

4.Transfer payments

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Question:
Macroeconomics is concerned with: 

1.Aggregate economic activity

2.Spending decisions of households

3.How to produce goods

4.How to but stocks and bonds

Posted Date:-2021-08-14 00:06:53


Question:
Market value of all final goods and services produced in a country during a year is definition of: 

1.NI

2.NNP

3.GNP

4.Consumpt

Posted Date:-2021-08-14 00:06:53


Question:
National income is a measure of: 

1.The size of government revenue

2.Payments made to factors of production

3.Total increase in wages in a year

4.Total production of goods in a period

Posted Date:-2021-08-14 00:06:53


Question:
NI = NE is an: 

1.Equation

2.Identity

3.Function

4.None of these

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Question:
Per capita income is: 

1. Income per worker

2.Income per head

3.Income per household

4. Income per industrial unit

Posted Date:-2021-08-14 00:06:53


Question:
PI is equivalent to: 

1.DPI minus personal taxes

2.DPI plus unearned receipts

3.DPI minus income earned but not received

4.NI plus unearned receipts minus earnings not received (taxes)

Posted Date:-2021-08-14 00:06:53


Question:
Real national income increases when: 

1.Prices of goods are rising

2.National savings increase

3. Quantity of goods and services increases

4.None of above

Posted Date:-2021-08-14 00:06:53


Question:
The four factor payments are: 

1.Money capital salaries and income

2. Wages rent interest and profits

3.Money power prices and wealth

4.Wages interest salaries and income

Posted Date:-2021-08-14 00:06:53


Question:
The four factor payments are: 

1.Money capital salaries and income

2.Wages rent interest and profits

3.Money power prices and wealth

4.Wages interest salaries and income

Posted Date:-2021-08-14 00:06:53


Question:
The largest part of national income is: 

1.Consumption

2.Investment

3.Saving

4.Transfer payments

Posted Date:-2021-08-14 00:06:53


Question:
There are methods of measuring national income: 

1.5

2.2

3.1

4.3

Posted Date:-2021-08-14 00:06:53


Question:
They have a functional relation  

1.Consumption and national income

2.Consumption and saving

3.Consumption and investment

4.All of the above

Posted Date:-2021-08-14 00:06:53


Question:
To avoid double counting when GDP is estimated  economist:  

1.Use GDP deflator

2. Calculate value added at each stage of production

3.Use retail prices

4.Use price only intermediate goods

Posted Date:-2021-08-14 00:06:53


Question:
To determine the correct level of GNP  it is necessary to: 

1.Add up the values of goods and services during one year

2.Add up all savings

3.Count all imports

4.Add up the value of semi finished goods

Posted Date:-2021-08-14 00:06:53


Question:
Transfer payments are not included in national income because: 

1.Such payments are made to persons living abroad

2.Double counting would result

3.They are illegal

4.There is no method to account for these

Posted Date:-2021-08-14 00:06:53


Question:
Transfer payments means: 

1.Bank loans

2.The payment without work

3.Tax payments

4.Payment made to all factors of production

Posted Date:-2021-08-14 00:06:53


Question:
We measure national income by this method: 

1.Expenditure method

2. Income method

3.Product method

4. All of the above

Posted Date:-2021-08-14 00:06:53


Question:
Which is the largest figure: 

1.NNP

2.GNP

3.DPI

4.PI

Posted Date:-2021-08-14 00:06:53


Question:
Which of the following is not included in personal Income: 

1.Social security benefits

2.Dividend payments

3.Undistributd corporate profits

4.Interest received from saving certificates

Posted Date:-2021-08-14 00:06:53


Question:
Which of the following would not be included in GNP: 

1.Govt. transfer payments

2.Payment for construction of state high way

3.Govt. purchase of an airplane

4. Salary paid for the presidents secretary

Posted Date:-2021-08-14 00:06:53


Question:
Which statement is true? 

1.National Income = National Expenditure - indirect taxes

2.NI = GNP - NNP

3.NI = NNP - indirect taxes

4.NI = PI

Posted Date:-2021-08-14 00:06:53


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