National Income Accounting Test

Result

National Income Accounting Test - 23

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Weekly Quiz Competition

Question 1
1 / -0

Which method of inventory valuation helps in reducing the burden of income tax in times of rising prices?

A
Last-in-first-out

B
First-in-first-out

C
Average cost

D
Base stock method
Question 2
1 / -0

Which one out of the following is not an inventory valuation method?

A
FIFO

B
LIFO

C
Weighted Average

D
EOQ
Question 3
1 / -0

The national income of a country for a given period is equal to the _____________________.

A
total value of goods and services produced by the nationals

B
sum of total consumption and investment expenditure

C
sum of personal income of all individuals

D
money value of final goods and services produced
Question 4
1 / -0

A higher inventory ratio indicates ____________.

A
Better inventory management

B
Quicker turnover

C
Both A and B

D
None of the above
Question 5
1 / -0

Other things remaining the same, when in a country the market price of foreign currency falls, national income is likely :
(Choose the correct alternative)

A
to rise

B
to fall

C
to rise or to fall

D
to remain unaffected

Solution

When foreign currency becomes cheaper, it indicates that demand of foreign exchange is higher than the supply of foreign exchange. Hence, other things remaining the same, when foreign currency becomes cheaper, the effect on national income is likely to be negative, i.e. exports will decrease and imports will increase, which will ultimately lead to fall in the national income. Hence, B is the correct option.
Question 6
1 / -0

National income is the sum of factor incomes accuring to :
(Choose the correct alternatives )

A
Nationals

B
Economic territory

C
Residents

D
Both residents and non-residents

Solution

National income is the sum of factor incomes accruing to residents. Hence, C is the correct option.
Question 7
1 / -0

What is/are the components of net factor income from abroad?

A
Net compensation of employees

B
Net income fro property and entrepreneurship

C
Net retained earnings

D
All of the above
Solution
Following are the components of net factor income from abroad:
1. Net compensation of employees.
2. Net income from income and entrepreneurship.
3. Net retained earnings.
Hence, option D is correct.
Question 8
1 / -0

Net factor income from abroad (NFAI) = National income - _________.

A
Domestic income

B
Net indirect tax

C
Subsidies

D
Market price

Solution

Net factor income from abroad (NFAI) = National income - Domestic income.
Net factor income from abroad -- Net factor income to abroad.
Domestic income is the income earned by the resident of a country within the geographical boundaries.
Hence, option A is correct.
Question 9
1 / -0

_________ refers to net market value of all final goods and services produced within the domestic territory of a country during a period of one year.

A
GDP at MP

B
GDP at FC

C
NDP at MP

D
NDP at FC

Solution

Net Domestic Product at Market Price (NDP at MP) refers to net market value of all final goods and services produced within the domestic territory of a country during a period of one year.
Hence, option C is correct.
Question 10
1 / -0

___________________ refers to the difference between factor income received from the rest of the world and factor income paid to the rest of the world.

A
Net factor income to abroad

B
Net factor income from abroad

C
Net indirect tax

D
Subsidies

Solution

Net factor income from abroad refers to the difference between factor income received from the rest of the world and factor income paid to the rest of the world. In order to covert NDP at FC to NNP at FC NFIA is added.
Hence, option B is correct.

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Re-Attempt Weekly Quiz Competition

National Income Accounting Test - 23

Result

National Income Accounting Test - 23

Score

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Rank

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SHARING IS CARING

Question 1

Last-in-first-out

First-in-first-out

Average cost

Base stock method

Question 2

FIFO

LIFO

Weighted Average

EOQ

Question 3

total value of goods and services produced by the nationals

sum of total consumption and investment expenditure

sum of personal income of all individuals

money value of final goods and services produced

Question 4

Better inventory management

Quicker turnover

Both A and B

None of the above

Question 5

to rise

to fall

to rise or to fall

to remain unaffected

Solution

Question 6

Nationals

Economic territory

Residents

Both residents and non-residents

Solution

Question 7

Net compensation of employees

Net income fro property and entrepreneurship

Net retained earnings

All of the above

Solution

Question 8

Domestic income

Net indirect tax

Subsidies

Market price

Solution

Question 9

GDP at MP

GDP at FC

NDP at MP

NDP at FC

Solution

Question 10

Net factor income to abroad

Net factor income from abroad

Net indirect tax

Subsidies

Solution

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