National Income Accounting – Test 1 Welcome to National Income Accounting - Test 1 Q1. Which of the following items is likely to affect the national income? a) Corporate tax b) GST c) Subsidies d) All of the above Q2. Construction of a school building by the Government will be treated as a part of: a) Domestic fixed capital formation b) Change in stock c) Government final consumption expenditure d) Residential Construction Investment Q.3. Which of the following will not be included in the national income of India? a) Leave-travel allowance paid by an employer to an employee b) Payments of dividends by one firm to another c) Man of the match award given to a cricketer in cash d) Import of second-hand machinery from abroad Q4. If Real GDP is Rs. 200 cr, and nominal GDP is Rs. 210 cr, then the value of the price index (with base 100) would be: a) Rs. 120 cr b) Rs. 105 cr c) Rs. 100 cr d) Rs. 115 cr Q5. Production of a firm during a year – sales of a firm during a year is known as: a) Value of output b) Net value added c) Change in stock d) Intermediate consumption Q6. While calculating the GDP, exports are included because: a) Exporters are paid for it b) It is an expenditure on domestic product c) It is a final expenditure of the buyers d) Exports are factor income from abroad Q7. If GDP is Rs. 5000 cr, intermediate consumption is Rs. 2500 cr, and the ratio of sales to change in stock is 2:1, then the value of sales would be: a) Rs. 4000 cr b) Rs. 5000 cr c) Rs. 3000 cr d) Rs. 2000 cr Q8. “Commodity-service” is the alternate name of which method of calculating national income? a) Value-added method b) Income method c) Expenditure method d) None of the above Q9. In a three-sector model, ______________ is an example of a leakage. Q10. Which of the following is not a part of a country’s NDP at MP? a) Indirect taxes b) Net exports c) Net change in stock d) Consumption of fixed capital Q11. _______________ refers to the provision made by the producers for replacement investment.Your new question! Q12. National income at current prices will be less than national income at constant prices during a period of: a) Constant prices b) Rising prices c) Falling prices d) Any of the above Q13. The ratio of nominal GDP to real GDP is a well-known index of prices, known as: a) Current price index b) Base price index c) Both (a) & (b) d) GDP deflator Q14. Gross fixed capital formation is an example of: a) Stock variable b) Flow variable c) Neither stock, nor flow d) Both stock and flow Q15. The profits earned by a Korean-owned Hyundai car factory in India will be included in the: a) Domestic income b) National income c) Both (a) & (b) d) Neither (a) nor (b) Time's up
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