National Income Accounting Test

Result

National Income Accounting Test - 25

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Weekly Quiz Competition

Question 1
1 / -0

________ refers to gross market value of all final goods and services produced by the normal residents of a country during a period of one year.

A
GNP at MP

B
GNP at FC

C
NNP at MP

D
NNP at FC

Solution

Gross National Product at Market Price (GNP at MP) refers to gross market value of all final goods and services produced by the normal residents of a country during a period of one year.
Hence, option A is correct.
Question 2
1 / -0

__________refers to gross money value of all final goods and services produced by the normal residents of a country during a period of one year.

A
GNP at MP

B
GNP at FC

C
NNP at MP

D
NNP at FC

Solution

Gross National Product at Factor Cost (GNP at FC) refers to gross money value of all final goods and services produced by the normal residents of a country during a period of one year.
Hence, option B is correct.
Question 3
1 / -0

__________ refers to that part of personal income which is actually available at the disposal of households.

A
Private income

B
Personal income

C
Personal disposable income

D
Personal tax

Solution

Personal disposable income refers to that part of personal income which is actually available at the disposal of households. It is that amount which someone has after taxes to spend on necessities like housing, food etc.
Hence, option C is correct.
Question 4
1 / -0

What is/are excluded from the personal disposable income?

A
Personal taxes

B
Miscellaneous receipts of government

C
Both A and B

D
None of the above

Solution

Personal disposable income = Personal income - Personal taxes - Miscellaneous receipts of government.
Hence, option C is correct.
Question 5
1 / -0

_________ refers to net money value of all final goods and services produced by the normal residents of a country during a period of one year.

A
GNP at MP

B
GNP at FC

C
NNP at MP

D
NNP at FC

Solution

Net National Product at Factor Cost (NNP at FC) refers to net money value of all final goods and services produced by the normal residents of a country during a period of one year.
Hence, option D is correct.
Question 6
1 / -0

Which of the following is a final good?

A
Seeds used by a farmer on his field

B
Tyres purchased by a transport company

C
Unsold stock of goods lying with the seller

D
Computer purchased by dealer

Solution

Capital goods are those final goods which are used in the process of production for several years and are of higher value. These goods are fixed assets of the producers. Use of these goods leads to depreciation. Hence, unsold stock of goods lying with the seller as unsold stock is an investment for the seller.
Hence, correct answer is option C.
Question 7
1 / -0

Which of the following correctly represents value of National Income?

A
COE + OS + MIXED INCOME + NFIA

B
COE + OS - MIXED INCOME + NFIA

C
COE - OS - MIXED INCOME + NFIA

D
COS - OS - MIXED INCOME - NFIA

Solution

Using Income Method,
National Income (NNP at FC) = Compensation of employees (wages + social security contribution) + Operating Surplus {Rent + Interest + Profit (Corporate profit tax + Dividend + Undistributed profit)} + Mixed income of self employed + Net Factor Income From Income.
Hence, correct answer is option A.
Question 8
1 / -0

Capital formation does not consist of ___________.

A
Savings by the community

B
Mobilisation of savings of the country

C
Investment

D
Higher standard of living

Solution

Capital formation means accumulation of physical capital/capital goods, i.e., those goods that help in further production of goods. This accumulation or formation of capital requires savings as well as mobilisation of these savings into investment in the economy.
Question 9
1 / -0

_______ is the method of measuring national income is used in the real estate, ownership and dwelling and business services sector.

A
Value added method

B
Income method

C
Expenditure method

D
None of the above
Question 10
1 / -0

________ defined injection into circular flow as "An injection into circular flow is income received by a sector, that does not arise from the spending of other sector."

A
Peterson

B
Spenser

C
Lipsey

D
Dernburg

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Re-Attempt Weekly Quiz Competition

National Income Accounting Test - 25

Result

National Income Accounting Test - 25

Score

-

Rank

-

SHARING IS CARING

Question 1

GNP at MP

GNP at FC

NNP at MP

NNP at FC

Solution

Question 2

GNP at MP

GNP at FC

NNP at MP

NNP at FC

Solution

Question 3

Private income

Personal income

Personal disposable income

Personal tax

Solution

Question 4

Personal taxes

Miscellaneous receipts of government

Both A and B

None of the above

Solution

Question 5

GNP at MP

GNP at FC

NNP at MP

NNP at FC

Solution

Question 6

Seeds used by a farmer on his field

Tyres purchased by a transport company

Unsold stock of goods lying with the seller

Computer purchased by dealer

Solution

Question 7

COE + OS + MIXED INCOME + NFIA

COE + OS - MIXED INCOME + NFIA

COE - OS - MIXED INCOME + NFIA

COS - OS - MIXED INCOME - NFIA

Solution

Question 8

Savings by the community

Mobilisation of savings of the country

Investment

Higher standard of living

Solution

Question 9

Value added method

Income method

Expenditure method

None of the above

Question 10

Peterson

Spenser

Lipsey

Dernburg

User

Question Analysis

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