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Karnataka PUC II Commerce National Income Accounting — practice questions

Explore 7 free National Income Accounting questions in Karnataka PUC II Commerce Economics. Open each question or exercise to read its content, reference answers and available explanation.

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National Income Accounting questions and exercises with answers

Showing questions 1–7 of 7.

Net Domestic Product (NDP) at market prices equalsRead the answer and worked solution →Which of the following is INCLUDED in GDP?Read the answer and worked solution →If NDP at factor cost is ₹100 lakh and net indirect taxes are ₹15 lakh, NDP at market prices isRead the answer and worked solution →Personal Disposable Income (PDI) equalsRead the answer and worked solution →Which is a TRANSFER payment in the macroeconomic framework?Read the answer and worked solution →Which equation correctly states the EXPENDITURE method of GDP at market prices?Read the answer and worked solution →If GDP at market prices = ₹500, depreciation = ₹50, net indirect taxes = ₹40, NFIA = ₹10, then NNP at factor cost (National Income) =Read the answer and worked solution →

Worked practice questions

Net Domestic Product (NDP) at market prices equals

  1. GDP_MP + NFIA
  2. GDP_MP + Depreciation
  3. GDP_MP − Depreciation
  4. GDP_MP − Net Indirect Taxes
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Correct answer: C. GDP_MP − Depreciation

NDP_MP = GDP_MP − Depreciation. Net concepts subtract consumption of fixed capital (depreciation) from gross concepts.

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Which of the following is INCLUDED in GDP?

  1. Capital gains on shares
  2. The sale of an old painting between collectors
  3. Transfer payment from government to a pensioner
  4. Rent paid for a new apartment
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Correct answer: D. Rent paid for a new apartment

Only newly-produced goods/services are in GDP. Resale of old assets, transfers (no production), and capital gains are excluded rent for a new apartment counts as a service produced this period.

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If NDP at factor cost is ₹100 lakh and net indirect taxes are ₹15 lakh, NDP at market prices is

  1. ₹150 lakh
  2. ₹85 lakh
  3. ₹100 lakh
  4. ₹115 lakh
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Correct answer: D. ₹115 lakh

NDP_MP = NDP_FC + Net Indirect Taxes = 100 + 15 = 115 lakh. Net indirect taxes = indirect taxes − subsidies.

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