National Income Aggregates Class 12 MCQ ISC covers certain important topics, which are covered under syllabus for ISCE Class 12 and are coming in Term II examination for the academic year 2022-23. National Income Aggregates Class 12 MCQ Test contains 60 questions. MCQ on Economics Class 12 ISC have been made for Class 12 students to help check the concept you have learnt from detailed classroom sessions and application of your knowledge.
National Income Aggregates Class 12 MCQ ISC
Important relations
1._______ is defined as the value of all final goods and services produced by all enterprises located within the domestic territory of a country.
(a) National income
(b) Domestic income
(c) Domestic territory
(d) National Territory
Answer
Answer: (b) Domestic income
2. Which of the following statements about domestic income are true;
(a) Total of factors incomes
(b) Produced in or out the domestic territory
(c) Both (a)&(b)
(d) None of the above
Answer
Answer: (a) Total of factors incomes
3. ______ refers to the number of final goods and services produced by the normal residents of a country during a year.
(a) National income
(b) Domestic income
(c) Domestic territory
(d) National Territory
Answer
Answer: (a) National income
4. National income is the total of factor incomes earned by normal residents of a country during a year. (True/False)
Answer
Answer: True
5. The concept of domestic product is_____ in nature.
(a) Monetary
(b) Fiscal
(c) Geographical
(d) Political
Answer
Answer: (c) Geographical
6. Maruti Udyog is a part of______.
(a) Domestic income
(b) National income
(c) Geographical territory
(d) Both (a)&(c)
Answer
Answer: (a) Domestic income
7. Income from Suzuki company is a part of domestic income. (True/False)
Answer
Answer: False
8. The difference between the national product and the domestic product is________
(a) Intermediate product
(b) Net factor income from abroad
(c) Factor income from abroad
(d) Factor income abroad
Answer
Answer: (b) Net factor income from abroad
9. Money value of all goods and services is estimated in which of the two ways?
(a) At factor cost
(b) At money price
(c) Both (a)&(b)
(d) None of the above
Answer
Answer: (c) Both (a)&(b)
10. ____ is the payment made by the firms to the factors of production for rendering factor services.
(a) Market price
(b) Factor cost
(c) Factor price
(d) Market cost
Answer
Answer: (b) Factor cost
11. Market price is the price at which a commodity is sold in the market. (True/False)
Answer
Answer: True
12. _____ is the value of all final goods and services produced by the normal residents of a country in a year calculated at market price.
(a) National income at market price
(b) National product at factor cost
(c) National income at the market level
(d) National income at market cost
Answer
Answer: (a) National income at market price
13. _____ is the value of all final goods and services produced by the normal residents of a country in a year calculated at factor cost.
(a) National income at market price
(b) National product at factor cost
(c) National income at the market level
(d) National income at market cost
Answer
Answer: (b) National product at factor cost
14. Cash grants are given by the government to the producers to sell goods at prices lower than the free market price.
(a) Tax
(b) Financial grants
(c) Subsidies
(d) None of the above
Answer
Answer: (c) Subsidies
15. Indirect tax minus subsidy is called net indirect taxes. (True/False)
Answer
Answer: True
16. National product at factor cost is;
(a) National product at market price
(b) Minus indirect taxes
(c) Plus subsidies
(d) All of the above
Answer
Answer: (d) All of the above
17. Consumption of fixed capital in the process of production is known as;
(a) Subsidies
(b) Depreciation
(c) Taxes
(d) All of the above
Answer
Answer: (b) Depreciation
18. Loss of value of fixed capital assets during the production process is called taxes. (True/False)
Answer
Answer: False
19. Depreciation occurs due to
(a) Normal wear and tear
(b) Production
(c) Investment
(d) Future prices
Answer
Answer: (a) Normal wear and tear
20. _______ is used by producers to meet the consumption of fixed capital.
(a) Depreciation
(b) Depreciation allowance
(c) Depreciation wear and tear
(d) None of the above
Answer
Answer: (b) Depreciation allowance
21. National product =
(a) GDP – Depreciation
(b) GDP + Depreciation
(c) GDP – NIT
(d) GDP + NIT
Answer
Answer: (a) GDP – Depreciation
National Income Aggregates Class 12 MCQ ISC
National income aggregates
22. _______ is the market value of all final goods and services at the prevailing market price produced within the domestic territory during a year.
(a) GDPmp
(b) GDPfc
(c) NNPmp
(d) Pfc
Answer
Answer: (a) GDPmp
23. GDP mp includes depreciation. (True/False)
Answer
Answer: True
24. ______ is defined as the value of all final goods and services produced by normal residents of a country during a year.
(a) GDPmp
(b) GNPfc
(c) GNPmp
(d) Pfc
Answer
Answer: (a) GDPmp
25. GNPmp includes
(a) Subsidies
(b) Depreciation
(c) Taxes
(d) All of the above
Answer
Answer: (b) Depreciation
26. GNPmp =
(a) GDPmp + NFIA
(b) GDPmp + Depreciation
(c) GDPfc + NFIA
(d) GDPfc + Depreciation
Answer
Answer: (a) GDPmp + NFIA
27. _______ is the value of all final goods and services at the prevailing market prices produced in the domestic territory during a year.
(a) GDPmp
(b) GDPfc
(c) NDPmp
(d) Pfc
Answer
Answer: (a) GDPmp
28. NDPmp =
(a) GDPmp – Depreciation
(b) GDPmp – NFIA
(c) GDPfc – Depreciation
(d) GDP- NFIA
Answer
Answer: (a) GDPmp – Depreciation
29. _______ is the value of all final goods and services at market price produced by normal residents of a country during a year
(a) NNPmp
(b) Pfc
(c) NDP
(d) Pfc
Answer
Answer: (a) NNPmp
30. GDPfc is the total of earnings received by various factors of production in the form of wages, rent, profit and interest after making depreciation allowance. (True/False)
Answer
Answer: False
31. GDPfc = GDPmp – ______
(a) Net indirect tax
(b) Depreciation
(c) NFIA
(d) NITA
Answer
Answer: (a) Net indirect tax
32. ______ is the total of earnings received by various factors of production in the form of wages, rent, profit and interest without making depreciation allowance.
(a) NNPmp
(b) Pfc
(c) NDP
(d) GNPfc
Answer
Answer: (d) GNPfc
33. ______ is the estimate of the domestic product in terms of earnings of factors of production within the domestic territory of a country in a year after making depreciation allowance.
(a) NNPmp
(b) Pfc
(c) NNPfc
(d) GNPfc
Answer
Answer: (c) NNPfc
34. Net domestic product at factor cost includes;
(a) Compensation of employees
(b) Operating surplus
(c) Mixed-income
(d) All of the above
Answer
Answer: (d) All of the above
National Income Aggregates Class 12 MCQ ISC
35. _______ is defined as all payments made by producers to their employees in the form of wages and salaries and other payments made in cash and kind in return for labour service.
(a) Compensation of employees
(b) Operating surplus
(c) Mixed-income
(d) None of the above
Answer
Answer: (a) Compensation of employees
36. Operating Surplus is the total property income and income from entrepreneurship. (True/False)
Answer
Answer: True
37. ______ is the total of interest, rent, profits and other similar incomes.
(a) Mixed-Income
(b) Depreciation
(c) Operating surplus
(d) Compensation in kinds
Answer
Answer: (c) Operating surplus
38. ______ is a composite of labour income and property income in case of those producers where it is difficult to differentiate between labour element and capital element in the services of a factor of production.
(a) Mixed-Income
(b) Depreciation
(c) Operating surplus
(d) Compensation in kinds
Answer
Answer: (a) Mixed-Income
39. ______ is the total compensation of employees, operating surplus and mixed income earned by the factors of production in the domestic territory of a country in a year.
(a) Pfc
(b) NNPmp
(c) NDPfc
(d) Pfc
Answer
Answer: (c) NDPfc
40. Net National Product at Factor Cost is also known as National Income. (True/False)
Answer
Answer: True
41. National income is defined as;
(a) Factor income accruing to normal residents without making depreciation allowance
(b) Factor income accruing to normal residents after making depreciation allowance
(c) Both (a)&(b)
(d) None of the above
Answer
Answer: (b) Factor income accruing to normal residents after making depreciation allowance
42. Which of the following is a private income.
(a) NDPfc
(b) Minus Income from property and entrepreneurship
(c) Minus National debt interest
(d) All of the above
Answer
Answer: (d) All of the above
43. _____ is the average income of the normal residents of a country in a particular year.
(a) Average rate
(b) Per capita income
(c) Per capita Production
(d) Average profit
Answer
Answer: (b) Per capita income
44. Per capita income is the income of the entire population. (True/False)
Answer
Answer: False
45. Per capita income = National income/Population. (True/False)
Answer
Answer: True
46. _____ is the money value of all final goods and services produced by all the enterprises located in the domestic territory during a particular year expressed at the prevailing market price.
(a) GDP at constant price
(b) GDP at the current price
(c) GDP at current cost
(d) GDP at constant cost
Answer
Answer: (b) GDP at the current price
47. _____ measures the value of final goods and services produced by all the enterprises located within the domestic territory of a country during a particular year expressed at the market prices prevailing in a particular year, which becomes the base year.
(a) GDP at constant price
(b) GDP at the current price
(c) GDP at current cost
(d) GDP at constant cost
Answer
Answer: (a) GDP at constant price
48. Goods and services included in the GDP of each year are valued at the prices of the base year. (True/False)
Answer
Answer: True
49. GDP at current prices can change from one year to another partly because;
(a) Of a change in the physical quantities of final goods and services produced
(b) In a change of the market prices at which these goods and services are valued.
(c) Both (a)&(b)
(d) None of the above
Answer
Answer: (c) Both (a)&(b)
50. ______ does not reflect growth in the real domestic output.
(a) GDP at constant price
(b) GDP at the current price
(c) GDP at current cost
(d) GDP at constant cost
Answer
Answer: (b) GDP at the current price
51. _____ is that number that measures the changes in prices between different years.
(a) GDP number
(b) Price index
(c) Index number
(d) Price number
Answer
Answer: (c) Index number
National Income Aggregates Class 12 MCQ ISC
National income and economic welfare
52. Welfare is taken to mean a sense of satisfaction and happiness, a sense of well-being or feeling better off. (True/False).
Answer
Answer: True
53. The total welfare is divided into;
(a) Economic welfare
(b) Non-economic welfare.
(c) Both (a)&(b)
(d) None of the above
Answer
Answer: (c) Both (a)&(b)
54. ______ welfare refers to non-economic values of people in the society.
(a) Economic welfare
(b) Non-economic welfare.
(c) Both (a)&(b)
(d) None of the above
Answer
Answer: (b) Non-economic welfare.
55. Non- economic welfare relates to
(a) social values
(b) moral values.
(c) political values
(d) All of the above
Answer
Answer: (d) All of the above
56. Which of the following are examples of non-economic welfare
(a) Social welfare
(b) love and affection of the family members for each other
(c) Patriotism
(d) All of the above
Answer
Answer: (d) All of the above
57. _____ refers to material well-being of the people.
(a) Moral welfare
(b) Economic welfare
(c) Social welfare
(d) Political welfare
Answer
Answer: (b) Economic welfare
58. ________ means the total satisfaction or utility derived from the use of goods and services that can be purchased for money.
(a) Moral welfare
(b) Economic welfare
(c) Social welfare
(d) Political welfare
Answer
Answer: (b) Economic welfare
59. Economic welfare can’t be expressed as a function of goods and services and their prices. (True/False)
Answer
Answer: False
60. While taking national income as an indicator of economic welfare, national. income should be taken in ______.
(a) Real terms
(b) Nominal terms
(c) Both (a)&(b)
(d) None of the above
Answer
Answer: (a) Real terms
Economics Class 12 ISC MCQs – Term 2
- Theory of Income and Employment Class 12 MCQ
- Money : Meaning and Functions
- Banks : Commercial Bank and Central bank
- Balance of Payments and Exchange Rate
- Government Budget
- MCQ on Fiscal Policy Class 12 Economics
- National Income and Circular flow of Income
- National Income Aggregates Class 12 MCQ
- Methods of Measuring National Income Class 12 MCQ