Tag: methods of measuring national income

Quizzes (3) Questions (114)

Questions Related to methods of measuring national income

Multiple choice business economics and quantitative methods measurement of national income methods of national income methods of measuring national income national income analysis

Unpaid service should be _____ in the estimate of net income.

  1. excluded

  2. included

  3. nullified

  4. added
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Unpaid services, such as household chores performed by family members, are excluded from national income because they are not exchanged in the market and lack a reliable monetary value.

Multiple choice business economics and quantitative methods measurement of national income methods of national income methods of measuring national income national income analysis

Expenditure method is ________ used to calculate national income.

  1. widely

  2. rarely

  3. broadly

  4. always
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The expenditure method is generally considered more difficult to apply in many developing economies due to data limitations regarding private final consumption expenditure, making it less commonly used than the product method.

Multiple choice business economics and quantitative methods measurement of national income methods of national income methods of measuring national income national income analysis

Positive net foreign income from broad brings an increases in national income.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Net factor income from abroad is a component of Gross National Product. If it is positive, it adds to the domestic income to arrive at the national income.

Multiple choice business economics and quantitative methods measurement of national income methods of national income methods of measuring national income national income analysis

The income of the government through all sources is called public _________.

  1. money

  2. income

  3. debt

  4. revenue
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Public revenue refers to the income generated by the government through various sources such as taxes, fees, and profits from public enterprises.

Multiple choice business economics and quantitative methods measurement of national income methods of national income methods of measuring national income national income analysis

Given Real GDP 9% and rate of inflation 2.25%, the norminal GDP will be ___.

  1. 9%

  2. 11.25%

  3. 6.75%

  4. 8%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Nominal GDP equals real GDP plus the inflation rate. Adding 9% and 2.25% gives 11.25%. This shows how inflation affects the nominal value of output.

Multiple choice business economics and quantitative methods measurement of national income methods of national income methods of measuring national income national income analysis

"Determination of wage rate, distribution of national income" was the theory given by?

  1. Adam smith

  2. A. marshall

  3. Ricardo

  4. Pigon
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Alfred Marshall is widely recognized for his work in neoclassical economics, including the theory of distribution and the determination of factor prices.

Multiple choice business economics and quantitative methods measurement of national income methods of national income methods of measuring national income national income analysis

For studying the various national income components it is required that data should be collected on _______________.

  1. Expenditure

  2. Investments

  3. Income

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

To get a comprehensive view of national income, data on all three aspects (expenditure, investment, and income) are necessary to cross-verify and calculate the aggregates.

Multiple choice business economics and quantitative methods measurement of national income methods of national income methods of measuring national income national income analysis

The net values added (NVA) method of measuring national income is also known as ______.

  1. net output method

  2. production method

  3. industry of origin method

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The NVA method of measuring national income is also known as net output method, production method and industry of origin method.

Multiple choice business economics and quantitative methods measurement of national income methods of national income methods of measuring national income national income analysis

Identify the items which is not a factor payment.

  1. Free uniform to defense personnel

  2. Salaries to the members of Parliament

  3. Imputed rent of an owner occupied building

  4. Scholarship given to the scheduled caste students
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Factors payments are those payments, which are made to factors of production e.g. rent, interest, profit, wages etc. Scholarships given to the scheduled caste students is not a factor payment, it is a transfer payment and it will not be included in national income.