National Income Accounting Test

Result

National Income Accounting Test - 22

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Weekly Quiz Competition

Question 1
1 / -0

Refrigerator purchased by a confectionery shop is an example of _______________.

A
Final Good

B
Intermediate Good

C
Capital Good

D
Both (a) and (c)

Solution

Refrigerator purchased by a confectionery shop is an example of intermediate good since refrigerator is not yet ready for use by the final users. Value is yet to be added. Refrigerator is used as a raw material by a confectionery shop.
Question 2
1 / -0

Which of the following is a stock?

A
Savings

B
Production

C
Consumption of fixed capital

D
Capital

Solution

Capital is a stock since it is measured at a point of time. Capital is not time dimensional. It is not measured over a specified period of time like flow. Therefore, capital is a stock concept.
Question 3
1 / -0

Change in stock is negative when:

A
Closing stock $$>$$ Opening stock

B
Closing stock $$<$$ Opening stock

C
Closing stock $= 0$$

D
Opening stock $= 0$$

Solution

Change in stock is negative when closing stock is less than opening stock and if closing stock is more than opening stock the change in stock will be positive.
Question 4
1 / -0

Net factor income from abroad is taken into account when national income is calculated by:

A
Value added method

B
Income method

C
Expenditure method

D
Any of the three methods

Solution

Net factor income from abroad refers to the difference between factor income received from the rest of the world and the factor in compared to the rest of the world.
NDP at FC + NFIA = National Income.
It is used in all the three methods of calculating national income
Thanks option D is correct
Question 5
1 / -0

Which of the following is included in compensation of employees?

A
Dearness Allowance

B
Tools given to employees to be used during work

C
Payment by insurance company to an injured employee

D
Contribution by employee to provident fund

Solution

Compensation of employees refers to the payment which an employee gets against the output generated by him in the firm. It includes the basic pay, dearness allowance which is the amount required for the basic consumption, and commission if any. Hence, option A is correct.
Question 6
1 / -0

When planned savings is less than planned investment, then:

A
national income is likely to fall

B
there will be no change in national income

C
national income is likely to rise

D
none of the above
Question 7
1 / -0

National Income in India is the ___________________.

A
Net National Product at market price

B
Net National Product at Factor cost

C
Net Domestic Product at market price

D
Net Domestic Product at factor cost
Question 8
1 / -0

In India the term National Income represents ___________________.

A
Gross national product at market prices minus depreciation.

B
Gross national product at constant prices minus depreciation plus net factor income from abroad.

C
Gross national product and indirect taxes plus subsidies and net factor income from abroad.

D
Gross national product at constant prices minus net factor income from abroad.
Question 9
1 / -0

Activities related to coordinating, controlling and planning flow of inventory are classified as ________________.

A
decisional management

B
throughput management

C
inventory management

D
manufacturing management
Question 10
1 / -0

What is correct about the 'normal profit' in an economy like India?

A
It is the minimum profit necessary to attract and retain suppliers in a perfectly competitive market.

B
the profit at which a buyer is eager to purchase a particular volume of the goods.

C
The maximum gain a manufacturer can manage out of a market.

D
None of the above.

Solution

Normal profit is the 'minimum profit' necessary to attract and retain manufacturers / suppliers in a perfectly competitive market. Only normal profit could be earned in such markets because, if profit was abnormally high, more competitors would appear and drive prices and profit down. If profit was abnormally low, firms would leave the market and the remaining ones would drive the prices and profit up. Markets where suppliers are making normal profits will neither expand nor shrink and will, therefore, be in a state of long-term equilibrium. Normal profit typically equals opportunity cost.

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Re-Attempt Weekly Quiz Competition

National Income Accounting Test - 22

Result

National Income Accounting Test - 22

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SHARING IS CARING

Question 1

Final Good

Intermediate Good

Capital Good

Both (a) and (c)

Solution

Question 2

Savings

Production

Consumption of fixed capital

Capital

Solution

Question 3

Closing stock $$>$$ Opening stock

Closing stock $$<$$ Opening stock

Closing stock $= 0$$

Opening stock $= 0$$

Solution

Question 4

Value added method

Income method

Expenditure method

Any of the three methods

Solution

Question 5

Dearness Allowance

Tools given to employees to be used during work

Payment by insurance company to an injured employee

Contribution by employee to provident fund

Solution

Question 6

national income is likely to fall

there will be no change in national income

national income is likely to rise

none of the above

Question 7

Net National Product at market price

Net National Product at Factor cost

Net Domestic Product at market price

Net Domestic Product at factor cost

Question 8

Gross national product at market prices minus depreciation.

Gross national product at constant prices minus depreciation plus net factor income from abroad.

Gross national product and indirect taxes plus subsidies and net factor income from abroad.

Gross national product at constant prices minus net factor income from abroad.

Question 9

decisional management

throughput management

inventory management

manufacturing management

Question 10

It is the minimum profit necessary to attract and retain suppliers in a perfectly competitive market.

the profit at which a buyer is eager to purchase a particular volume of the goods.

The maximum gain a manufacturer can manage out of a market.

None of the above.

Solution

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