Tag: national income analysis

Quizzes (3) Questions (99)

Questions Related to national income analysis

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

Expenditure on foreign financial assets is included in national income under the expenditure method on ________.

  1. gross basis

  2. net basis

  3. real time basis

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

In national income accounting, financial transactions are generally excluded, but when considering net flows, they are treated on a net basis to avoid double counting.

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

Aggregate of factor incomes of all the factors of production of all the producing units form the subject matter of _______.

  1. Value Added Method

  2. Income method

  3. Expenditure Method

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The income method calculates national income by summing all factor incomes earned by the factors of production within 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

Goods produced in preceding periods are ___________ national income under expenditure method.

  1. excluded from

  2. included from

  3. no specific rule

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

National income measures the value of goods and services produced in the current period. Goods produced in previous periods were already counted in the year they were produced.

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

Expenditure on raw materials and intermediate goods and services is ___________ national income.

  1. excluded from

  2. included from

  3. no specific rule

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

Expenditure on intermediate goods is excluded from national income to avoid double counting, as their value is already embedded in the final product.

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

Net National Expenditure can also be calculated as __________.

  1. Gross National Expenditure $-$ Replacement expenditure
  2. Gross National Expenditure $+$ Replacement expenditure
  3. Gross National Expenditure $-$ depreciation
  4. Gross National Expenditure $+$ depreciation
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Net National Expenditure is derived by subtracting depreciation (replacement expenditure) from Gross National Expenditure.

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

Under the expenditure method _________.

  1. expenditure on financial assets which are produced and owned within the country is excluded

  2. expenditure on financial assets of foreign countries is included

  3. both above are true

  4. none is true
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The expenditure method excludes purely financial transactions (like buying stocks or bonds) because they do not represent current production of goods or services.

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

For developed economies which of the following methods is most suitable?

  1. Value Added Method

  2. Income Method

  3. Expenditure Method

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

In developed economies, comprehensive tax and income reporting systems make the income method a highly reliable and suitable way to measure 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

These days, an increasing proportion of national income is being measured by _______.

  1. Value Added Method

  2. Income Method

  3. Expenditure Method

  4. Product Method
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Modern national accounting systems increasingly rely on the expenditure method due to the availability of detailed consumption and investment data.

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

Gini co-efficient is used for measuring poverty in _____________ sense.

  1. absolute

  2. relative

  3. gross

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

The Gini coefficient is a measure of statistical dispersion intended to represent the income inequality within a nation, making it a relative measure of poverty.

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

In India, poverty is measured in ___________ terms.

  1. absolute

  2. relative

  3. both

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

In India, the poverty line is defined based on a minimum level of income or consumption required to meet basic needs, which is an absolute measure of poverty.