MCQ on National Income – Chapter 5 – Economics MCQs

MCQ on National Income Class 12 Economics

MCQ on National Income, which is covered in this chapter, relates to the topic, National Income. MCQ on the National Income Test contains 10 questions. Answers to MCQ on National Income are available after clicking on the answer.

Subject	Economics
Topic	MCQ on National Income
Category	CBSE Class 12 MCQ

MCQ on National Income Class 12 

1. The difference between the value of output and value-added is:

(a)    Depreciation

(b)    Intermediate consumption

(c)     Net indirect taxes

(d)    NFIA

Answer

Answer:  (b)    Intermediate consumption

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2. Product method of calculating national income is also known as:

(a)    Income method

(b)    Value added method

(c)     Expenditure method

(d)    Distribution method

Answer

Answer:  (b)    Value added method

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3. Transfer payments refer to payments, which are made:

(a)    Without any exchange of goods and services

(b)    To workers on transfer from one job to another

(c)     As compensation to employees

(d)    None

Answer

Answer:  (a)    Without any exchange of goods and services

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4. National Income differs from Net National Product at market price by the amount of:

(a)    Current transfers from the rest of the world

(b)    Net Indirect Taxes

(c)     National debt interest

(d)    it does not differ

Answer

Answer: (b)    Net Indirect Taxes

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5. GDPMP = GDP + ________ :

(a)    Depreciation

(b)    Indirect taxes

(c)     NFIA

(d)    Subsidies

Answer

Answer: (c)     NFIA

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MCQ on National Income – Economics MCQs

6. National Income doesn’t include:

(a)    Interest on the unproductive national debt

(b)    Income for government expenditure

(c)     The payments by the household to the firm for the purchase of goods and services

(d)    Undistributed profit

Answer

Answer:  (a)    Interest on the unproductive national debt

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7.  Which of the following is not correct?

(a)    NNPMP = GNPMP. depreciation

(b)    NNPMP = NNPFC + net indirect taxes

(c)     GDPMP = GNPMP +.NFIA

(d)    NDPFC = GDPFC – depreciation

Answer

Answer: (c)     GDPMP = GNPMP +.NFIA

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9. Net national product at factor cost is also known as:

(a)    Net Domestic product

(b)    Gross National product

(c)     National Income

(d)    Personal Income

Answer

Answer: (c)     National Income

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10. In GNP calculation which of the following should be excluded?

(a)    Rental incomes

(b)    Interest payments

(c)     Dividends

(d)    Government transfer payment

Answer

Answer: (d)    Government transfer payment

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