National Income Accounting – Test 3 Welcome to National Income Accounting - Test 3 Q1. Operating surplus is equal to: a) Rent + profit + interest b) Rent + interest + COE c) NDP at FC - COE - Mixed income of self-employed d) Both (a) & (c) Q2. Which of the following is not included in inventory investment? a) Change in stock of finished goods b) Change in sales during the year c) Change in stock of raw material d) Change in stock of semi-finished goods Q3. Problem of "double counting" is associated with which method of calculating national income? a) Distributive share method b) Industry-origin method c) Consumption and investment method d) None of the above Q4. Own-account production of services is not included in national income because: a) Services are different from goods b) Services are not productive c) It is difficult to measure the market value of such services d) None of the above Q5. Which of the following is not a part of final expenditure? a) Consumer goods purchased by the Government b) Consumer goods exported to rest of the world c) Chemical pesticides purchased by farmers d) Government fixed investment expenditure Q6. Which of the following items is not included while estimating GNP of a country? a) Sales of enterprises b) Remittances by NRI's c) Indirect taxes d) Subsidies Q7. Value-added method measures the contribution of which of the following, within the domestic territory of a country? a) Household consumers b) Producing enterprises owned by the residents of the country c) Producing enterprises owned by the non-residents of the country d) Both (b) & (c) Q8. If the entire output is sold during an accounting year, then the value of output will be equal to _________________ Q9. That part of the profit which is retained by the firms to meet contingent expenses is known as: a) Dividends b) Savings of private corporate sector c) Tax on profits d) Operating surplus Q10. In case of mixed income, factors of production are hired/purchased from the market. True or false? True False Q11. If real GNP is Rs. 520, and nominal GNP is Rs. 650, calculate the price index. Q12. "According to a news item, "Sale of petrol and diesel cars is rising, particularly in big cities". Which index of GDP is highlighted in the statement? Q13. When GDP of the current year is measured, taking into consideration the prices prevailing in the base year, such a GDP is known as: Q14. Gross domestic capital formation is always greater than gross domestic fixed capital formation. True or false? Ture False Q15. In a two-sector circular flow of income model (with financial markets), __________________ is an example of an injection? Investment expenditure investment Time's up
