National Income Accounting CBSE Questions & Answers

National Income Accounting

This is Economics Class 12 National Income Accounting CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
Net Investment is Gross investment – depreciation.
  • A
    Can’t say
  • B
    Never
  • C
    FALSE
  • D
    1
    Correct
2
Domestic product can be distinguishes from the national product by the treatment of Net income from abroad.
  • A
    No
  • B
    Yes
    Correct
  • C
    Never
  • D
    Sometimes
3
Net factor income from abroad is the income earned by
  • A
    Residents abroad
    Correct
  • B
    Non residents in the domestic territory
  • C
    Non residents abroad
  • D
    Residents in the domestic territory only
4
Depreciation is fall in value of fixed assets due to normal wear and tear and expected obsolescence. Is this information sufficient?
  • A
    FALSE
  • B
    1
    Correct
  • C
    Never
  • D
    Can’t say
5
Why are exports included in the estimation of domestic product by the expenditure method?
  • A
    Because it was sold
  • B
    Because payments are made against it
  • C
    Because it has to be produced
  • D
    Because the goods are produced in the domestic territory
    Correct
6
Gross Domestic product at market price is the money value of all final goods and services produced during an accounting year with in the domestic territory of a country.
  • A
    Can’t say
  • B
    FALSE
  • C
    1
    Correct
  • D
    Never
7
Gross National product at market price is a money value of all final goods and services produced by a country during an accounting year including net factor income from abroad.
  • A
    FALSE
  • B
    Never
  • C
    1
    Correct
  • D
    Can’t say
8
Gross National product at market price is the money value of all final services produced in a year within the domestic territory of a country.
  • A
    True
  • B
    Can’t say
  • C
    False
    Correct
  • D
    Never
9
Gross National product at market price is a money value of all final goods and services produced by a country during an accounting year excluding net factor income from abroad.
  • A
    TRUE
  • B
    Never
  • C
    Can’t say
  • D
    0
    Correct
10
Intermediate goods are those
  • A
    Which are sold
  • B
    Which are used in the production
    Correct
  • C
    Which will be sold
  • D
    Which are for long term production
11
Final goods are those
  • A
    Which have to reach the boundary line of production
  • B
    Which are in between the boundary line of production
  • C
    Which have not crossed the boundary line of production
  • D
    Which have crossed the boundary line of production
    Correct
12
Which of the following is a component of Net factor income from abroad is
  • A
    Net retained earnings of resident companies abroad
    Correct
  • B
    Net subsidies
  • C
    Net current transfers
  • D
    Net indirect taxes
13
Which of the following will you include while estimating national income by expenditure method?
  • A
    Rent paid
  • B
    Operating surplus
  • C
    Mixed income of self employed
  • D
    Scholarships paid by the government
    Correct
14
Which of the following will you include while estimating national income by income method?
  • A
    Compensation of employees
    Correct
  • B
    Purchase of new car by a household
  • C
    Increase in stocks
  • D
    Purchase of share
15
Which of the following are not included while estimating domestic product of India?
  • A
    Commission paid to dealer in old car
  • B
    Clothes given to beggars
    Correct
  • C
    Free cloth given to workers
  • D
    Brokerage on sale of shares