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

If Willingness to Save is less, the level of ________ will be higher.

  1. Government regulated Savings

  2. Compulsory Savings

  3. Forced Savings

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

When voluntary savings are insufficient, governments may resort to forced savings through measures like taxation, inflation, or mandatory provident funds to increase the total savings in the economy.

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 focusses on measurement of National Income at _____________________.

  1. phase of Production of Goods and Services

  2. phase of Income Distribution

  3. phase of Income Disposition

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

The expenditure method measures national income by summing up all final expenditures in the economy, which corresponds to the phase of income disposition (spending).

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

_________ method is suitable for measuring National Income in the case of Agricultural sector.

  1. Product

  2. Income

  3. Expenditure

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

The product method is most suitable for the agricultural sector because it is easier to estimate the physical output and value added in agriculture than to track income or expenditures of farmers.

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

Income method focusses on measurement of National Income at ______________________.

  1. phase of Production of Goods and Services

  2. phase of Income Distribution

  3. phase of Income Disposition

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

The income method measures national income by summing the factor incomes generated during the production process, which represents the distribution phase of 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 production method of calculating national income is also known as _______________.

  1. value added method

  2. income method

  3. expenditure method

  4. none of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The production method is also known as the value added method because it calculates the net contribution of each sector by subtracting intermediate consumption from the 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

NNP at factor cost in 2010-11 was __________.

  1. Rs. 20,41,776 crore

  2. Rs. 42,60,000 crore

  3. Rs. 27,64,795 crore

  4. Rs. 21,40,536 crore
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

This is a factual question regarding historical Indian economic data. Based on official historical records, Rs. 42,60,000 crore is the cited figure for that period.

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

The three methods of computing national income are ___________.

  1. production, outlay and income methods

  2. balance of payments, income and consumption methods

  3. savings, investment and income methods

  4. outlay, depreciation and product methods
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The three standard methods for computing national income are the production (or product) method, the income method, and the expenditure (or outlay) method.

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

Mixed income of the self employed means __________.

  1. gross profits received by proprietors

  2. rent, interest and profit of an enterprise

  3. combined factor payments, which are not distinguishable

  4. wages due to family workers
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Mixed income of the self employed means combined factor payments of rent, wages, interest and profits received by the self-employed professional, which are not distinguishable.

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

Product Method focuses on measurement of National Income at _______________.

  1. phase of Production of Goods and Services

  2. phase of Income Distribution

  3. phase of Income Disposition

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

The product method measures the value of goods and services produced in an economy, corresponding to the production phase.