CBSE Class 12 (Arts) National Income Accounting — practice questions
68 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CBSE Class 12 (Arts) 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:What are goods meant for final use, passing through no more production stages, called?Steel sheets bought to make automobiles are an example of which kind of good?What common measuring rod lets us add up cloth, rice and machines in national output?Why does GDP count only final goods and not intermediate goods?Which kind of variable is defined over a period of time, like annual output?Stock variables are measured at which of the following?A tap fills a tank. The water in the tank at one instant is a what?Which expression correctly gives net investment?What does depreciation mean in national income accounting?A machine costing Rs 2,000 has a useful life of 20 years. Its yearly depreciation by the simple method is whatIn macroeconomics, what does the word investment mean?What is the remuneration for entrepreneurship called?In the simple circular flow economy, households use their income how?Measuring the spending that firms receive for final goods uses which method?Measuring the aggregate value of final goods produced by all firms is called which method?Summing all factor payments to estimate aggregate income is called which method?Bakers buy Rs 50 of wheat and sell bread worth Rs 200. Their value added is what?Counting wheat once as farm output and again inside bread is what kind of error?A firm has output Rs 100, inputs Rs 20 and capital consumption Rs 10. Gross value added?Using output of Rs 100, inputs of Rs 20 and depreciation of Rs 10, what is net value added?Unsold finished goods carried from one year to the next are called what?The change in inventories during a year is which kind of variable?A firm opens with Rs 100 of stock, produces Rs 1,000 and sells Rs 800. What is its closing inventory?How is a rise in a firm's inventories treated in national accounts?A sudden drop in sales leaves a firm with what inventory change?A firm starting with 100 shirts makes 1,000 but sells only 600. What is its closing stock?What does the sign for identity tell us about an expression?GDP equals the sum total of which quantity across all firms?Which expression gives GDP by the expenditure method?Among the five variables in the GDP expenditure identity, which is the most unstable?Why is intermediate spending left out of GDP while investment spending is counted?In the GDP expenditure identity, what is subtracted as M?To get GDP at market prices from GVA at basic prices, what is added?GVA at factor cost plus which item gives GVA at basic prices?Factor cost includes only payments to which group?Which of these is a product tax and not a production tax?GNP equals GDP plus which item?National Income equals NNP at market prices minus what?How are net indirect taxes defined?Personal Disposable Income is Personal Income minus what?Which GDP is valued at the prevailing current prices?A country makes 110 breads priced at Rs 15 each in 2001. What is its nominal GDP in 2001?A country made 110 breads in 2001, and bread cost Rs 10 in base year 2000. What is real GDP in 2001?With nominal GDP of Rs 1,650 and real GDP of Rs 1,100, the GDP deflator in percent is what?What is the ratio of nominal GDP to real GDP called?The Consumer Price Index tracks the cost of what?A basket cost Rs 1,400 in the base year and Rs 1,950 now. The CPI is about what?Which index in the USA corresponds to the Wholesale Price Index?Which price measure includes the prices of imported consumer goods?90 people earn Rs 9 each and 10 people earn Rs 20 each. What is GDP by the income method?How does ignoring barter exchanges affect the measured GDP of a developing country?What are benefits or harms caused to others without payment or penalty called?A refinery polluting a river and harming fishermen illustrates what?Which activity is left out of GDP because it is not valued in money?Tea leaves bought by a restaurant to sell brewed tea count as what?A television set bought by a household is best described as what?