Tag: methods of national income

Questions Related to methods of national income

Are the following statements true or false? Give reasons.
Production of services for self-consumption are not included in national income. 

  1. True

  2. False


Correct Option: A
Explanation:

Such services are not included in national income as It is difficult to ascertain their market value and they are not rendered for earning income. 

When planned savings is less than planned investment, then: 

  1. national income is likely to fall

  2. there will be no change in national income

  3. national income is likely to rise

  4. none of the above


Correct Option: A

In small sector net value added is estimated by ________.

  1. income method

  2. expenditure method

  3. production method

  4. survey method


Correct Option: A

In which case, net income from abroad need to be added separately under the income method?

  1. If national income is calculated from incomes received by people

  2. If national income is calculated from data regarding incomes paid out by producers

  3. In both above methods, added separately

  4. In neither of the above methods, added separately


Correct Option: B

Transfer incomes are ___________ national income.

  1. included in

  2. excluded from

  3. sometimes included, sometimes excluded

  4. none of above


Correct Option: B

Income method considers _________.

  1. only primary factors of production

  2. only secondary factors of production

  3. both (a) and (b)

  4. none of above


Correct Option: A