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

Net Value Added is equal to _____________________.

  1. Payments accruing to Factors of Production

  2. Compensation to Employees

  3. Wages plus Rent plus Imputed Rent

  4. Value of Output minus Depreciation
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Net Value Added at factor cost is equivalent to the sum of factor incomes (wages, rent, interest, and profit) generated by the production process, which are the payments accruing to the factors of production.

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 calculating national income measure __________.

  1. the same thing from different angle

  2. different thing from different angle

  3. different thing at the same angle

  4. the same thing from the same angle
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The three methods (Product, Income, and Expenditure) are different ways of measuring the same circular flow of income in an economy. They look at the economy from the perspective of production, income distribution, and final expenditure, respectively.

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

In which sector, expenditure method is used in India for calculating national income?

  1. Agriculture sector

  2. Mining sector

  3. Construction sector

  4. Transportation sector
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In India, the expenditure method is specifically utilized for the construction sector because it is often more practical to estimate the total expenditure on construction projects than to aggregate the income of the many small, informal entities involved.

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

Under expenditure Method, Consumption Expenditure + Net Domestic Investment + Replacement Expenditure equals ______________.

  1. Gross Domestic Expenditure

  2. Gross National Expenditure

  3. Net Domestic Expenditure

  4. Net National Expenditure
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Gross Domestic Expenditure is the sum of consumption expenditure, net domestic investment, and replacement expenditure (depreciation).

Multiple choice economics measurement of national income methods of national income methods of measuring national income national income analysis

National income is the sum of factor incomes accruing to: 

  1. country

  2. Economic territory

  3. Residents

  4. Both residents and non-residents
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

National income is defined as the sum of factor incomes earned by the normal residents of a country, regardless of whether they are earned within or outside the domestic territory.

Multiple choice economics measurement of national income methods of national income methods of measuring national income national income analysis

Sale of second hand machines is ____________ in Value Added Method.

  1. included

  2. excluded

  3. sometimes included and sometimes excluded

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

The sale of second-hand goods is excluded from the Value Added Method because the value of these goods was already counted in the year they were originally produced. Including them again would lead to double counting.

Multiple choice economics measurement of national income methods of national income methods of measuring national income national income analysis

The growth in the Gross Value Added at basic prices for 2015-16 from manufacturing sector is estimated to be ________.

  1. 9.5%

  2. 10%

  3. 11.55

  4. 12%
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Manufacturing sector is nothing but Secondary sector which deals with manufactured goods. It includes those sectors which produce finished or usable goods. It takes up raw material from primary sectors like agriculture and produce goods which are ready to use or export.

The growth in the Gross Value Added at basic prices for 2015-16 from manufacturing sector is estimated to be 9.5%

Multiple choice economics measurement of national income methods of national income methods of measuring national income national income analysis

Which of the following is a true statement?

i. National income refers to the income of individuals of a country

ii.The income at their disposal after paying direct taxes is called disposable income

 

  1. a. i only

  2. b. ii only

  3. c. both

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

Both the given statements are true which says that

National income refers to the income of individuals of a country

The income at their disposal after paying direct taxes is called disposable income