National Income Test 5 Online Mcqs Preparation

1. National Income is:

A. Total income earned in producing the national product

B. NNP minus the capital consumption allowance

C. Total income spent in the economy

D. Sum of disposable personal income and saving

2. National income is a measure of:

A. Total production of goods in a period

B. Payments made to factors of production

C. Total increase in wages in a year

D. The size of government revenue

3. Which of the following would increase level of national income ?

A. A reduction in consumer spending

B. An increase in exports

C. An increase in taxation

D. A reduction in government spending

4. Consumption spending does not include:

A. Household's purchase of food

B. Household's payment of rent for an apartment

C. Household's purchase of car

D. Household's purchase of stock in any XYZ corporation

5. Which of the following would not be included in GNP:

A. Payment for construction of state high way

B. Govt. purchase of an airplane

C. Salary paid for the presidents secretary

D. Govt. transfer payments

6. Net exports are:

A. Total imports minus total exports

B. Total exports minus total imports

C. Total exports plus total imports

D. Total exports divided by total imports

7. Investment spending includes the purchase of:

A. All of the above

B. Govt. bonds

C. Stocks

D. Residential construction

8. Which of the following would not be included in GNP:

A. Payment for construction of state high way

B. Govt. transfer payments

C. Govt. purchase of an airplane

D. Salary paid for the presidents secretary

9. Govt. transfer payment include:

A. Welfare benefits

B. Student scholarships

C. All of the above

D. Social security benefits

10. Traffic fines are:

A. Included in PI but not in Disposable PI

B. Excluded from national income accounts

C. Part of personal consumption spending

D. Included in NI but not in PI

11. Which of the following is not included in personal Income:

A. Dividend payments

B. Undistributed corporate profits

C. Social security benefits

D. Interest received from saving certificates

National Income Test 5 Online Mcqs Preparation

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