National Income Test 1 Online Mcqs Preparation

1. To determine the correct level of GNP, it is necessary to:

A. Add up the value of semi finished goods

B. Count all imports

C. Add up all savings

D. Add up the values of goods and services during one year

2. It is considered as transfer payments:

A. Bonus of bank employees

B. Free medical care to officers

C. Unemployment allowance paid by govt

D. Salaries of employees

3. Transfer payments are not included in national income because:

A. Double counting would result

B. Such payments are made to persons living abroad

C. There is no method to account for these

D. They are illegal

4. Real national income increases when:

A. Quantity of goods and services increases

B. Prices of goods are rising

C. None of the above

D. National savings increase

5. If indirect taxes are deducted from NNP and subsidies are added, we achieve:

A. Per capita income

B. DPI

C. NI

D. Personal savings

6. It is considered as investment:

A. Both (a) & (b)

B. Purchase of an old house

C. Salaries of college professors

D. Construction of a house

7. Per capita income is:

A. Income per head

B. Income per industrial unit

C. Income per household

D. Income per worker

8. NI = NE is an:

A. Function

B. Identity

C. None of these

D. Equation

9. GNP is always:

A. Less than NNP

B. Greater than NNP

C. Any of (a), (b), (c)

D. Equal to NNP

10. The four factor payments are:

A. Wages, interest, salaries and income

B. Wages, rent, interest and profits

C. Money, capital, salaries, and income

D. Money, power, prices, and wealth

National Income Test 1 Online Mcqs Preparation

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