Bihar Board Class 12 (Commerce) National Income Accounting — practice questions
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Practice Bihar Board Class 12 (Commerce) National Income Accounting in the app →Intermediate goods are excluded from national income to avoid the problem of:The value of output minus the value of intermediate consumption is called:National income can be measured by the product method, the income method and the:The fall in the value of fixed capital due to normal wear and tear is called:Gross National Product (GNP) equals GDP plus:Net National Product (NNP) is obtained by subtracting ___ from GNP:The value of national income measured at the prices actually received by factors of production is the:Market price equals factor cost plus indirect taxes minus:The circular flow of income shows the flow of goods, services and money between:In the expenditure method, national income is found by adding consumption, investment, government spending andThe branch of economics concerned with aggregates such as GDP, employment and the price level is:Income that households actually have available to spend or save, after taxes, is called:An item meant for final use that undergoes no further production stage is aSteel sheets bought by a car maker to build cars are classed asTools, implements and machines that aid production are calledWhich common measuring rod lets us add rice, cloth and machines into total output?Adding the value of both intermediate and final goods to output leads toWhich of these is a flow variable?A stock variable is measuredA tap fills a tank. The amount of water in the tank at a given moment is aNet investment is equal toDepreciation is also known asA machine costing Rs 20 lakh has a useful life of 10 years. Its annual depreciation isThe value added of a firm equals itsA firm has output Rs 100, intermediate goods Rs 20 and capital consumption Rs 10. Its net value added isA firm produces Rs 500, uses Rs 200 of intermediate goods and has Rs 50 depreciation. Gross value added isValue added is what type of variable?Inventory, the unsold stock a firm carries into the next year, is aThe wages, interest, profits and rents paid out by a firm add up to itsBy the expenditure method, GDP at market price equalsWhich component of aggregate expenditure is the most unstable?In the expenditure method, M stands for total spending onInvestment in the GDP identity coversBy the income method, GDP is the sum ofWhy must total final expenditure equal total factor incomes?Firm A grows cotton worth Rs 50 and sells it to firm B, which sells cloth for Rs 200. GDP isGNP at market prices is equal toGDP at market price is Rs 5,000 crore and NFIA is minus Rs 200 crore. GNP at market price isNet domestic product at market prices isGDP at factor cost equals GDP at market pricesFactor cost is market price minusNNP at market prices can also be written asNNP at factor cost is also calledNational disposable income equals NNP at market prices plusCotton sold by a farmer to a spinning mill isCooking food at home is not counted as economic activity becauseTea leaves used by a restaurant to make tea for sale areTelevision sets and automobiles bought by households areThe part of final output made up of capital goods isIn economics, investment always meansDepreciation is described asWhy does more capital goods today allow more consumer goods later?Rent is the income earned by the owner ofThe circular flow of income is facilitated through theGDP valued at base year prices is calledNominal GDP is GDP valued atA country makes only bread: 110 units at Rs 15 now, Rs 10 in the base year. Real GDP isA country makes only wheat: 90 quintals now at Rs 30, base year price Rs 25. Nominal GDP isThe GDP deflator is the ratio ofNominal GDP is Rs 3,000 crore and real GDP is Rs 2,000 crore. The GDP deflator in percent isConsumer Price Index measures the price of a basket bought by theA basket costs Rs 2,000 in the base year and Rs 2,600 now. The CPI isThe price at which goods are traded in bulk is theIn the USA, the index analogous to India's WPI is called theA difference between CPI and GDP deflator is that CPI includes prices ofUnlike CPI, the GDP deflator takes into accountIn the CPI, the weights areRising GDP may not mean rising welfare when income isDirect exchange of goods against goods without money is calledLeaving out barter exchanges causesBenefits or harms caused to others without payment or penalty areDomestic services women perform at home are not in GDP because they areIn a country, 90 people earn Rs 9 each and 10 earn Rs 20 each. GDP by income method isAdam Smith's most influential work was titledThe wage of an Indian working in Saudi Arabia is included inWhich item is deducted from national income to get personal income?Pensions and scholarships paid to households arePersonal disposable income is personal income minusA fine paid by a household is an example of aCorporate tax is deducted from national income because itWhich part of national income does household consumption and saving come from?A firm buys Rs 40 of raw material and sells output of Rs 90. Its value added isAn Indian company's profit earned in Dubai affects which aggregate?If GDP rises but real incomes of 90% of people fall, GDP as a welfare index isCountries rich in natural resources are