Q 1. Output means . ……………unless stated otherwise
(a) Gross output at MP
(b) Net output at MP
(c) Gross output at FC
(d) None
Ans: A
Q.2 Which of the following is not a component of domestic income ?
(a) Operating surplus
(b) Compensation of employees
(c) Net factor income from abroad
(d) Mixed income
Ans: C
Q.3 A growing country is one whose
(a) GNP is rising at current prices
(b) GNP is constant at constant prices
(c) GNP is rising at constant prices
(d) None of these
Ans: C
Q.4 If factor cost is greater than marker price, it means that
(a) Indirect taxes < subsidies
(b) Indirect taxes > subsidies
(c) I.T = subsidies
(d) None
Ans: A
Q.5 An Indian farmer produces wheat without incurring cost of inputs alll
sells for Rs. 1,000 to a miller who grinds wheat into flour and sells for Rs
1,200 to baker. The baker sells bread to consumers for Rs. 1,600. Total v:
added is Rs.
(a) 1,600
(b) 2,200
(c) 1,000
(d) 1,400
Ans: A
Q.6 Which of the following is not true about final goods ?
(a) Final gods satisfy wants of ultimate consumers and producers.
(b) Final goods have direct demand as they satisfy the wants directly.
(c) Final goods are subject to further transformation in the process of production.
(d) Final goods are neither used up as raw-material nor for resale in the same year.
Ans: C
Q.'7 Following is an example of final good:
(a) Flour used by a banker in making biscuits
(b) Unsold stock of goods lying with the sellers
(c) Tyres purchased by a transport company
(d) Mobile sets purchased by a mobile dealer
Ana: B
Q.8 Which out of the following is not included in estimation of NI ?
(a) Subsidized Lunch
(b) Old-age Pension
(c) Free Medical facilities
(d) Construction of a house
Ans:B
Q.9 Which of the following is included in compensation of employees ?
(a) Dearness Allowance
(b) Tools given to employees to be used during work
(c) Payment by insurance company to an injured employee
(d) Contribution by employee to provident fund
Ans: A
Q.1o Which of the following is a synonym of "Undistributed Profits" ?
(a) Savings of private corporate sector
(b) Reserves and Surplus
(c) Retained Earnings
(d) A11 of these
Ans: D
Q.11 'Commodity service method' is another name for:
(a) Expenditure method
(b) Income method
(c) Value - added Method
(d) None of these
Ans: C
Q.12 Which of the following statements is true ?
(a) Bread is always a consumer good
(b) All producer goods are not capital goods
(c) Transfer income is received for providing a good or service in return
(d) Interest paid by a household on car loan from a bank is a factor payment
Ans: B
Q.13 Distributed Profits ' is also known as :
(a) Corporate Tax
(b) Dividend
(c) Retained earnings
(d) None of these
Ans: B
Q.14 Piyush's mother is a teacher. She also teaches Piyush. How would you
treat this white calculating national income and domestic income ?
(a) It will be included in the national income, but not in the domestic income.
(b) It will be included in the domestic income, but not in the national income.
(c) It will be included in domestic income as well as national income.
(d) It will neither be included in the domestic income nor in the national income.
Ans: D
Q.15 Subsidy implies Selling the product
(a) To the government at higher prices
(b) Below the cost of production.
(c) Selling the product at loss.
(d) Selling the product at cost plus indirect taxes.
Ans: B
Q.16 Which of the following is correct ?
(a) If national income rises, per capita income must also rise.
(b) If population rises, per capita income must fall.
(c) If national income rises, welfare of the people must rise.
(d) None of the above.
Ans: D
Q.17 Goods which are not used in the production of other goods are called:
(a) Capital goods
(b) Consumption goods
(c) Producer goods
(d) Intermediate goods
Ans: B
Q.18 Depreciation is the:
(a) Loss of vale of fixed assets in use due to normal wear and tear
(b) Loss of value of fixed assets in use due to normal rate of accidental damages
(c) Loss of value of fixed assets in the due to foreseen obsolescence
(d) All of these
Ans: D
Q.19 Real GDP is considered as an index of:
(a) Price level in the economy
(b) Welfare of the people
(c) Profit maximization
(d) None
Ans: B
Q.20 Which of the following makes GDP an inappropriate index of welfare ?
(a) Non-monetary transactions
(b) Internationalities
(c) Composition and distribution of GDP
(d) All of these
Ans: D
Q.21 Which of following is not included in national income ?
(a) Factor income
(b) Rent
(c) Operating surplus
(d) Transfer income
Ans: D
Q.22 Which of following is not a capital good ?
(a) Use of Machine tools
(b) Raw Material
(c) Advocate's Services
(d) Heavy Machinery
Ans: C
Q.23 Which of following is not an intermediate goods ?
(a) Wheat
(b) Gold
(c) Service of Doctor
(d) Sand and Bricks
Ans: C
Q.24 Which of following is not a final good ?
(a) Machinery purchased by dealer
(b) Machinery purchased by a factory
(c) Use of petrol
(d) Washing machine
Ans: A
Q. 25 Which of following is not a part of national income ?
(a) Depreciation
(b) Net factor income from abroad
(c) Operating surplus
(d) Mixed income
Ans: A