Tag: methods of national income

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Questions Related to methods of 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

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.

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 product (NNP) at factor cost was ________ in 1950-51.

  1. Rs. 92,367 crore

  2. Rs. 1,02,367 crore

  3. Rs. 1,22,367 crore

  4. Rs. 2,04,924 crore
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

This is a factual question regarding historical Indian economic data. Rs. 2,04,924 crore is the historically accepted figure for NNP at factor cost in 1950-51.

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 Small Scale Sector.

  1. Product

  2. Income

  3. Expenditure

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

The income method is often preferred for the small-scale sector because these enterprises often have better records of their income payments than their total output or final expenditures.

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

Value Added Method is used to measure _______________.

  1. national income

  2. domestic income

  3. gross income

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

The Value Added method (also known as the Product method) calculates the total value of goods and services produced within an economy. This total value represents the national income generated by all productive sectors.

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

Which of the following items are included in computing National Income under Income Method?

  1. Transfer Incomes

  2. Illegal Incomes

  3. Incomes earned by Owners of Primary Factors of Production

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

The Income Method calculates national income by summing all factor incomes earned by owners of primary factors of production (land, labor, capital, and entrepreneurship). Transfer incomes (like pensions) and illegal incomes are excluded because they do not represent current productive activity.

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 Developed Countries where all persons file their income-tax returns.

  1. Product

  2. Income

  3. Expenditure

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

In developed countries, comprehensive income tax systems provide reliable data on individual and corporate earnings. This makes the Income Method highly effective for estimating national income in those regions.