MCQ on National Income – Chapter 5 – Economics MCQs

MCQ on National Income, which are covered in this chapter, relate to the topic, National Income. MCQ on National Income Test contains 10 questions. Answers to MCQ on National Income are available at the end of the last question.




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

(a)    Depreciation

(b)    Intermediate consumption

(c)     Net indirect taxes

(d)    NFIA

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

(a)    Income method

(b)    Value added method

(c)     Expenditure method

(d)    Distribution method

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

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

(a)    Current transfers from rest of the world

(b)    Net Indirect Taxes

(c)     National debt interest

(d)    it does not differ

5. GDPMP = GDP + ________ :

(a)    Depreciation

(b)    Indirect taxes

(c)     NFIA

(d)    Subsidies

6. National Income doesn’t include:

(a)    Interest on unproductive national debt

(b)    Income for government expenditure

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

(d)    Undistributed profit




7. National Income doesn’t include:

(a)    Interest on unproductive national debt

(b)    Income for government expenditure

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

(d)    Undistributed profit

8. 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

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

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

(a)    Rental incomes

(b)    Interest payments

(c)     Dividends

(d)    Government transfer payment

ANSWERS

1. (b) Intermediate consumption

2. (b) Value added method

3. (a) Without any exchange of goods and services

4. (b) Net Indirect Taxes

5. (c) NFIA

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

7. (a) Interest on unproductive national debt

8. (c) GDPMP = GNPMP +.NFIA

9. (c) National Income

10 (d) Government transfer payment

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