Tag: methods of measuring national income

Questions Related to methods of measuring national income

National income is the sum of factor incomes accruing to: 

economics measurement of national income methods of national income methods of measuring national income national income analysis

  1. country

  2. Economic territory

  3. Residents

  4. Both residents and non-residents

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Correct Option: C

Sale of second hand machines is ____________ in Value Added Method.

economics measurement of national income methods of national income methods of measuring national income national income analysis

  1. included

  2. excluded

  3. sometimes included and sometimes excluded

  4. none of above

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Correct Option: B

The most appropriate measure of a country's economic growth is ________.

economics measurement of national income methods of national income methods of measuring national income national income analysis

  1. GDP

  2. NDP

  3. Per capita income

  4. GNP

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Correct Option: C
Explanation:

The most appropriate measure of a country's economic growth is per capita income

Per capita income is the average income earned by a person in the specified year.

The growth in the Gross Value Added at basic prices for 2015-16 from manufacturing sector is estimated to be ________.

economics measurement of national income methods of national income methods of measuring national income national income analysis

  1. 9.5%

  2. 10%

  3. 11.55

  4. 12%

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Correct Option: A
Explanation:

Manufacturing sector is nothing but Secondary sector which deals with manufactured goods. It includes those sectors which produce finished or usable goods. It takes up raw material from primary sectors like agriculture and produce goods which are ready to use or export.

The growth in the Gross Value Added at basic prices for 2015-16 from manufacturing sector is estimated to be 9.5%

Which of the following is a true statement?

i. National income refers to the income of individuals of a country

ii.The income at their disposal after paying direct taxes is called disposable income

 

economics measurement of national income methods of national income methods of measuring national income national income analysis

  1. a. i only

  2. b. ii only

  3. c. both

  4. d. none

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Correct Option: C
Explanation:

Both the given statements are true which says that

National income refers to the income of individuals of a country

The income at their disposal after paying direct taxes is called disposable income

_______ is the wealthiest Indian state which accounts for 12% of the Indian GDP.

economics measurement of national income methods of national income methods of measuring national income national income analysis

  1. Tamil Nadu

  2. Kerala

  3. Maharashtra

  4. Karnataka

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Correct Option: C
Explanation:

Wealthiest Indian state which accounts for 12% of the Indian GDP is Maharashtra. The best facilities like transport, trade etc. including a port has contributed to the immense development of the state.

Mumbai the capital of Maharashtra state is the business capital of India 

To avoid double counting we deduct the value of  ________.

economics measurement of national income methods of national income methods of measuring national income national income analysis

  1. final goods

  2. intermediate goods

  3. raw material

  4. none of the above

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Correct Option: B
Explanation:

Intermediate goods are those goods which are partly finished and are used in the process of production of another goods.

As the intermediate goods are used again in the production of another good, counting the value of these goods may result in double counting. That is why value of intermediate goods are not taken while calculating national income.

There is no possibility of double counting while estimating national income.

economics measurement of national income methods of national income methods of measuring national income national income analysis

  1. True

  2. False

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Correct Option: B

National income at constant price is an estimate on the basis of base prices.

economics measurement of national income methods of national income methods of measuring national income national income analysis

  1. True

  2. False

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Correct Option: A

Distribution of Income and Wealth is measured in terms of ____________.

economics measurement of national income methods of national income methods of measuring national income national income analysis

  1. Real GDP Per Capita

  2. Standard of Living

  3. Fiscal Deficit

  4. Gini Index

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Correct Option: D