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Economics National Income MCQS Set-2
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1. If C = 200 and I = 40 then Y will equal to:
160
240
200
None of these
2. Corporate tax is levied on:
Landlords
Municipal corporations
Joint stock companies
Importers
3. If we deduct direct taxes from personal income we get
Net national income
Personal saving
Disposable income
Percapita income
4. The largest part of national income goes to:
Consumption
Investment
Saving
Transfer payment
5. We measure national income by this method:
Expenditure method
Income method
Product method
Any of the above
6. Which statement is true?
NNP = GNP - Depreciation
NNP = NI
NNP - DPI
None of these
7. Transfer payments mean:
Bank loans
The payment without work
Tax payments
Payments made to all factors of production
8. Direct taxes are not included in:
NNP
PI
DPI
(a) and (c) of above
9. When national income is estimated by expenditure method we include:
All govt. expenditure
All household expenditure
All expenditure of the business sector
All of the above
10. Which statement is true?
Nationl Expenditure = National income
Nationl Expenditure = National income + National savings
Nationl Expenditure = National income + Taxes
Nationl Expenditure = National income - Taxes
11. Which statement is true?
National Income = National expenditure - indirect taxes
NI = GNP - NNP
NI = NNP - indirect taxes
NI = PI
12. There are methods of measuring national income:
5
2
1
3
13. If we compare GDP and GNP then:
GNP = GDP - net income from abroad
GNP = GDP + net income from abroad
GNP = NNP - net income from abroad
GNP = NNP + net income from abroad
14. It is deducted from GNP to get NNP:
Indirect taxes
Depreciation
Direct taxes
Transfer payment
15. It is added to GDP to get GNP
Depreciation allowance
Direct taxes
Subsidies
Net income from abroad
16. Select the correct statement:
Transfer payment are included in national income
Depreciation allowance is a part of GNP
Taxes are not included in NNP
GDP means Gross Direct Production
17. Which is the largest figure:
NNP
GNP
DPI
PI
18. Which is a flow concept:
Number of my shirts
My total wealth
My monthly income
Money supply
19. To avoid double counting when GDP is estimated economists:
Use GDP deflator
Calculte value added at each stage of production
Use retail prices
Use price of only intermediate goods
20. A TV set purchased from a retail store is an example of:
Intermediate good
Capital good
Surplus good
Final good
21. Undistributed profits are considered:
Income earned but not received
Income received but not earned
Income earned and received
None of the above
22. Total value of all final goods and services produced in a country during one year is:
NNP
GNP
GDP
NI
23. Which measure has the larger value (for Pakistan):
NNP
GNP
GDP
NI
24. In equilibrium position of national income:
S > 1
S < 1
S = 1
All are true
25. Personal income includes:
Direct taxes
Indirect taxes
Depreciation
None of the above
26. Personal income includes:
Transfer payments
Indirect taxes
Depreciation
All of the above
27. If savings exceed investment then:
National income rises
National income falls
National income is not affected
None of the above
28. If we include it national income will be over-estimated:
Transfer payment
Income from abroad
Illegal income
Exports
29. It is avoided to make correct estimate of national income:
Free services
Double counting
Export earnings
All of the above
30. It is not included in estimation of national income:
Illegal income
ervices of house wifes
Imports
All are not included
31. The goods which are used directly by the people are called:
Consumer goods
Capital good
Direct good
None of these
32. Circular flow of income links:
Income expenditure
Exports Imports
Govt. taxes Govt. expenditure
Saving and investment
33. Transfer payments include:
Daily wages pensions
Pensions Zakat
Zakat taxes
Taxes pocket money
34. This statement is true
NI = rent + interest + wages + profit
NI = rent + interest + wages + taxes
NI = Govt. expenditure + interest + wages + profit
NI = rent + interest + wages + pensions
35. Determinants of national income are:
Natural resources human resources monetary resources
Natural resources capital resources monetary resources
Natural resources capital resources human resources
Natural resources capital resources foreign resources
36. National income is estimated by:
Product import and export methods
Product income and consumption methods
Product income and market methods
Product income and expenditure methods
37. National income of a country does not include:
Self services low wages
Donations and high salaries
Corporate taxes and gifts
Illegal incomes and unreported incomes
38. This statement is true
Inflation does not play any role in distribution of national income
Inflation plays unfavourable role in distribution of national income
Inflation plays favourable role in distribution of national income
Inflation brings equality in aggregate demand and aggregate demand and aggregate supply
39. GDP stands for:
Great domestic progress
Grand development plan
Gross domestic product
Gross domestic plan
40. Gross national product is:
Total annual monetary receipts by the prople
Total annual spending in the economy
Total market value of final goods and services produced by the economy
All of the above
41. It is NOT a method to measure national income:
Adding all expenditure
Adding all incomes
Adding value of goods and services
Adding all taxes
42. Macroeconomics is concerned with:
Aggregate economic activity
Individual decision units
How to produce goods
How to buy stocks and bonds
43. In economics persons having a joint family budget are called:
Community
Gathering
Household
Organization
44. Which of the following is NOT macroeconomics:
Inflation
Unemployment
The level of output in the economy
Level of wages in export industry
45. Investment spending includes the purchase of:
Stocks (shares)
Government bonds
Residential construction
All of the above
46. Which of the following would NOT be included in GNP:
Government support to the very poor
Government purchase of an airplane
Payment for construction of highway
The salary paid for the President s secretary
47. It is transfer payment:
Payment of pocket money to children
Financial support to old parents
Broker s commission in some auction
(a) and (c) of above
48. The largest type of income in the Pakistan is:
Compensation f employees
Proprietors income
Rental income
Corporate profits
49. An open economy:
Must be a democracy
Is one without taxes
Is that interacts with other economies
Means world economy
50. Which of the following is transfer payment:
Paument of college tuition fee
Payment for social security
Payment of interest
Payment for a leased car
51. Which of the following is counted in GDP:
Sale of used car
Purchase of shares of PSO (company)
A TV set produced this year but not sold
The leisure enjoyed by people
52. If government increases taxes private savings:
Increase
Decrease
Become negative
Do not change
Submit