National Income Accounting Test 3 Mcqs Preparation Online

1. Sale of old newspapers by a household is a part of?

A. Transfer payments

B. Net final consumption expenditure of the household

C. Capital formation

D. Value added by the household sector

2. Which of the following activities of a farmer is an example of intermediate consumption?

A. Wages paid to workers at harvesting time

B. Electricity charges for operating a pump

C. Payment of interest to a co-operative bank

D. Purchase of tractor

3. Demand for final consumption arises in?

A. All sectors

B. Both (a) & (b)

C. Government sector only

D. Household sector only

4. Which of the following is included in the consumption of fixed capital?

A. Destruction of buildings in an earthquake

B. Expenditure on repairs and maintenance

C. Fall in the price of machinery and other stocks

D. Normal wear and tear machinery while in use

5. Purchases made by the US Embassy in India are part of?

A. Domestic consumption expenditure

B. Transfer payments

C. Net factor earnings from abroad

D. Exports from India to the USA

6. Which of the following is not a part of net investment in an economy?

A. Purchase of wall-clock by a household

B. Purchase of old shares

C. Increasing the storage of raw materials

D. Purchase of a wall-clock by a factory

7. Imputed rental value of owner occupied dwellings is a part of?

A. Intermediate consumption

B. Expenditure on consumer durably

C. Final consumption

D. Capital formation

8. Gross domestic fixed-capital formation does not include?

A. Net purchase of second hand machinery by private corporate sector from Government

B. Construction of new roads and bridges

C. Own account production of news assets

D. Net imports of second-hand machinery from abroad

9. Which of the following constitutes a part of domestic fixed capital formation?

A. Net purchase of second-hand physical assets from abroad

B. Net purchase of second-hand assets by corporate enterprises

C. Accumulation of stocks of fertilisers

D. Expenditure on new parts of physical assets

10. Direct purchases abroad made by the government on current account are a part of?

A. Investments

B. Net factor payments abroad

C. Current transfers from the rest of the world

D. Final consumption

National Income Accounting Test 3 Mcqs Preparation Online

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