National Income and Related Aggregates MCQ Questions

National Income and Related Aggregates MCQ Questions include – Multiple Choice Questions, Fill in the Blanks, True or False, Short answers type questions. Answers to MCQ on National Income and Related Aggregates Class 12 are available at the end of the last question.

Category CBSE Economics Class 12 MCQs
Subject Economics
Chapter National Income and Related Aggregates MCQ Questions

MCQ on National Income and Related Aggregates Class 12 (Multiple Choice Questions)




1. Domestic income is:
(a) GDPMP
(b) NDPFC
(c) NNPMP
(d) GNPFC

Answer

Answer: (b) NDPFC


 

2.National income is:
(a) GDPMP
(b) NDPMP
(c) NNPFC
(d) GNPFC

Answer

Answer: (c) NNPFC


 

3. The difference between gross and net is:
(a) Depreciation
(b) NFIA
(c) Net Indirect Tax
(d) Subsidies

Answer

Answer: (a) Depreciation


 

4. Domestic income is which concept?
(a) National
(b) Economic
(c) Territorial
(d) None of the above

Answer

Answer: (c) Territorial


 

5. National income is which concept?
(a) Territorial
(b) National
(c) Economical
(d) None of the above

Answer

Answer: (b) National


 

6. he difference between domestic income and National income is____.
(a) NFIA
(b) Net Indirect Tax
(c) Depreciation
(d) All of the above

Answer

Answer: (a) NFIA





7. How is GDPMP different from NNPfc ?
(a) NFIA
(b) Net Indirect Tax
(c) Depreciation
(d) All of the above

Answer

Answer: (d) All of the above


 

8. Market price includes:
(a) NFIA
(b) Depreciation
(c) Net Indirect Tax
(d) None of the above

Answer

Answer: (c) Net Indirect Tax


 

9.The word national in national income means:
(a) Goods produced by normal resident
(b) Goods produced in domestic territory
(c) Services produced by normal resident
(d) Both (a) and (c)

Answer

Answer: (d) Both (a) and (c)


 

10. The word gross means:
(a) Inclusive of NFIA
(b) Inclusive of indirect tax
(c) Exclusive of depreciation
(d) Inclusive of depreciation

Answer

Answer: (d) Inclusive of depreciation


 

National Income and Related Aggregates MCQ Questions

11. Product means:
(a) Intermediate goods
(b) Transfer payments
(c) Final goods and services
(d) Both (a) and (b)

Answer

Answer: (c) Final goods and services


 

12. Factor cost is the:
(a) Market value
(b) Money value
(c) Transfer value
(d) None of the above

Answer

Answer: (b) Money value


 

13. How many aggregates does national income have?
(a) 10
(b) 5
(c) 8
(d) 4

Answer

Answer: (c) 8


 

14. Market price is the:
(a) Market value
(b) Money value
(c) Transfer value
(d) None of the above

Answer

Answer: (a) Market value





15. Which of the following is a domestic concept?
(a) NDPMP
(b) NDPFC
(c) GDPMP
(d) All the above

Answer

Answer: (d) All the above


 

16. Which of the following is not a national concept?
(a) GDPFC
(b) NNPMP
(c) GNPFC
(d) NNPFC

Answer

Answer: (a) GDPFC


 

17. The difference between NNPMP and NNPfc is:
(a) Depreciation
(b) NFIA
(c) Net Indirect Tax
(d) All of the above

Answer

Answer: (c) Net Indirect Tax


 

18. Which of the following is a national concept?
(a) NNPMP
(b) NNPFC
(c) GNPMP
(d) All the above

Answer

Answer: (d) All the above


 

19. Which of the following is not a domestic concept?
(a) NNPMP
(b) NDPFC
(c) GDPMP
(d) GDPFC

Answer

Answer: (a) NNPMP


 

20. If NFIA is negative,
(a) Factor income to abroad will be less than Factor income from abroad
(b) Factor income to abroad will be equal to Factor income from abroad
(c) Factor income to abroad will be more than Factor income from abroad
(d) None of the above

Answer

Answer: (c) Factor income to abroad will be more than Factor income from abroad


 

National Income and Related Aggregates MCQ Questions

21. If NFIA is 0,
(a) Domestic income will be more than national income
(b) Domestic income will be equal to national income
(c) Domestic income will be less than national income
(d) None of the above

Answer

Answer: (b) Domestic income will be equal to national income





22. If NFIA is positive,
(a) NDPFC = NNPFC
(b) NDPFC > NNPFC
(c) NDPFC < NNPFC
(d) None of the above

Answer

Answer: (c) NDPFC < NNPFC


 

23. If Net Indirect Taxes are negative,
(a) Factor cost will be less than market price
(b) Factor cost will be more than market price
(c) Factor cost is equal to market price
(d) None of the above

Answer

Answer: (b) Factor cost will be more than market price


 

24. Depreciation can never be:
(a) Zero
(b) Positive
(c) Negative
(d) None of the above

Answer

Answer: (c) Negative


 

25. All domestic variants are:
(a) National concept
(b) Territorial concept
(c) Economical concep
(d) None of the above

Answer

Answer: (b) Territorial concept


 

26. Which of the following is a method to calculate national income?
(a) Value added method
(b) Income method
(c) Expenditure method
(d) All of the above

Answer

Answer: (d) All of the above


 

27. Value added method is also known as:
(a) Product method
(b) Inventory method
(c) Net output method
(d) All of the above

Answer

Answer: (d) All of the above


 

28. Which aggregate of national income is constituted from the value added method?
(a) NDPFC
(b) GDPMP
(c) GDPFC
(d) NDPMP

Answer

Answer: (b) GDPMP


 

29. All production units are grouped into:
(a) Primary sector
(b) Tertiary sector
(c) Secondary sector
(d) All of the above

Answer

Answer: (d) All of the above


 

30. Which of the following is not included while calculating national income through value added method?
(a) Intermediate goods
(b) Services for self-consumption
(c) Second hand goods
(d) All of the above

Answer

Answer: (d) All of the above


 

National Income and Related Aggregates MCQ Questions

31. Which of the following is correct?
(a) GDPMP = Value of Output- Intermediate Consumption
(b) NDPFC = Value of Output- Intermediate Consumption
(c) GDPFC = Sales+ change in stock
(d) NDPMP = Sales + change in stock

Answer

Answer: (a) GDPMP = Value of Output- Intermediate Consumption


 

32. Income method is also known as:
(a) Factor payment method
(b) Factor service method
(c) Factor output method
(d) All of the above

Answer

Answer: (a) Factor payment method


 

33. Which of the following is not a component of factor income?
(a) Compensation of employees
(b) Operating surplus
(c) Sales of goods and services
(d) Mixed income of self employed

Answer

Answer: (c) Sales of goods and services


 

34. Which of the following is not a component of operating surplus?
(a) Profit
(b) Intermediate consumption
(c) Rent and royalty
(d) Interest

Answer

Answer: (b) Intermediate consumption


 

35. Which of the following is a component of compensation of employees?
(a) Wages and salary in cash
(b) Wages and salaries in kind
(c) Employer’s contribution to PPF
(d) All of the above

Answer

Answer: (d) All of the above


 

36. Which of the following is a component of profits?
(a) Corporate tax
(b) Dividends
(c) Retained earnings
(d) All of the above

Answer

Answer: (d) All of the above


 

37. Which of the following is not included in national income as per income method?
(a) Windfall gains
(b) Transfer incomes
(c) Payments out of past savings
(d) All of the above

Answer

Answer: (d) All of the above


 

38. Expenditure method is also known as:
(a) Income disposable method
(b) Net output method
(c) Factor payment method
(d) None of the above

Answer

Answer: (a) Income disposable method


 

39. Which of the following is a component of the expenditure method?
(a) Private final consumption expenditure
(b) Net exports
(c) Gross domestic capital formation
(d) All of the above

Answer

Answer: (d) All of the above


 

40. Which of the following is a part of gross domestic capital formation?
(a) Gross fixed capital formation
(b) Inventory investment
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (c) Both (a) and (b)


 

National Income and Related Aggregates MCQ Questions

41. Which of the following is not included in national income as per expenditure method?
(a) Purchase of second-hand goods
(b) Purchase of financial assets
(c) Intermediate goods
(d) All of the above

Answer

Answer: (d) All of the above





42. Which of the following is not a component of gross fixed capital formation?
(a) Gross business fixed investment
(b) Inventory investmen
(c) Gross residential construction investment
(d) Gross public investment

Answer

Answer: (b) Inventory investment


 

43. Which of the following is correct?
(a) Inventory investment= Opening stock- Closing stock
(b) Inventory investment= Opening stock + Closing stock
(c) Inventory investment= Closing stock- Opening stock
(d) Inventory investment= Gross fixed investment + opening stock

Answer

Answer: (c) Inventory investment= Closing stock- Opening stock


 

44. Which of the following groups incur final expenditure?
(a) Household sector
(b) Foreign sector
(c) Government and producing sector
(d) All of the above

Answer

Answer: (d) All of the above


 

45. Net exports is
(a) Export – Import
(b) Import – Export
(c) Export + Import
(d) None of the above

Answer

Answer: (a) Export – Import


 

46. The output at current year price is called:
(a) Nominal GDP
(b) Real GDP
(c) National GDP
(d) None of the above

Answer

Answer: (a) Nominal GDP





47. The output at base year price is called:
(a) Nominal GDP
(b) Real GDP
(c) National GDP
(d) None of the above

Answer

Answer: (b) Real GDP


 

48. Real GDP shows:
(a) Change in price only
(b) Change in output only
(c) Change in both price and output
(d) None of the above

Answer

Answer: (b) Change in output only


 

49. Nominal GDP shows:
(a) Change in price only
(b) Change in output only
(c) Change in both price and output
(d) None of the above

Answer

Answer: (c) Change in both price and output


 

50. If population increase, then:
(a) GDP rise
(b) Welfare rise
(c) Welfare decrease
(d) Both (a) and (c)

Answer

Answer: (c) Welfare decrease


 

National Income and Related Aggregates MCQ Questions

51. Making public parks increase:
(a) GDP
(b) Welfare
(c) GDP and welfare both
(d) None of the above

Answer

Answer: (b) Welfare





52. Due to non monetary changes,:
(a) GDP rise but welfare falls
(b) Welfare rise but GDP falls
(c) No impact on GDP but welfare increases
(d) No impact on GDP and welfare

Answer

Answer: (c) No impact on GDP but welfare increases


 

53. Due to setting up of plant near river coast,
(a) GDP falls, welfare rise
(b) GDP rise, welfare falls
(c) Both GDP and welfare falls
(d) Both GDP and welfare rises

Answer

Answer: (b) GDP rise, welfare falls


 

54. Which of the following statements is false?
(a) Use of public parks increases welfare.
(b) Distribution of GDP increases welfare
(c) Higher GDP always cause higher welfare
(d) None of the above

Answer

Answer: (c) Higher GDP always cause higher welfare


 

55. Which of the following is included in national income?
(a) Brokerage on sale of financial assets
(b) Sale of financial assets
(c) Intermediate goods
(d) Transfer payments

Answer

Answer: (a) Brokerage on sale of financial assets


 

56. Which of the following is not included in national income?
(a) Windfall gains
(b) National debt interest
(c) Purchase of second hand goods
(d) All of the above

Answer

Answer: (d) All of the above





57. Increase in Stock of Capital is known as:
(a) Capital Loss
(b) Capital Profit
(c) Capital Formation
(d) None of these

Answer

Answer: (c) Capital Formation


 

58. Interest on loans paid by commercial bank is:
(a) Included in national income
(b) Excluded in domestic income
(c) Excluded in national income
(d) None of the above

Answer

Answer: (a) Included in national income


 

59. Sales and purchase of financial asset is:
(a) Included in national income
(b) Excluded in national income
(c) Excluded in domestic income
(d) None of the above

Answer

Answer: (b) Excluded in national income


 

60. NDPMP = ________
(a) GDPMP – Depreciation
(b) GDPFC + Net factor income from abroad
(c) NNPFC + Net indirect taxes
(d) All of these

Answer

Answer: (a) GDPMP – Depreciation


 

61. Interest earned by normal resident is:
(a) Included in national income
(b) Included in domestic income
(c) Excluded in national incom
(d) None of the above

Answer

Answer: (a) Included in national income


 

62. Which of the following is not included in compensation of employees?
(a) Wages and salary in cash
(b) Wages and salary in kind
(c) Employee’s contribution to PF
(d) Employer’s contribution to PF

Answer

Answer: (c) Employee’s contribution to PF





63. Which of the following is not a part of operating surplus?
(a) Rent and royalty
(b) Wages and salaries
(c) Interest and profits
(d) None of the above

Answer

Answer: (b) Wages and salaries


 

64. Retained earnings is also called:
(a) Undistributed profits
(b) Savings of private sector
(c) Excess reserves
(d) All of the above

Answer

Answer: (d) All of the above


 

65. Income of a teacher teaching at her own house is a part of:
(a) Mixed income of self employed
(b) Domestic income
(c) National income
(d) All of the above

Answer

Answer: (d) All of the above


 

Fill in the Blanks – National Income and Related Aggregates MCQ Questions

1. Market price refers to the______  of all final goods and services.
(a) Market value
(b) Intermediate value
(c) Final value
(d) None of the above

Answer

Answer: (a) Market value


 

2. NDPFC represents_______ .
(a) Domestic income
(b) Normal income
(c) Both (a) and (b)|
(d) International income

Answer

Answer: (a) Domestic income


 

3. National income is represented by______ .
(a) NDPFC
(b) NNPFC
(c) NNPMP
(d) NDPMP

Answer

Answer: (b) NNPFC





4. GNP exceeds NNP by ______.
(a) Subsidy
(b) Depreciation
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (b) Depreciation


 

5. NDP exceeds NNP by_____ .
(a) NFIA
(b) FIFA
(c) FITA
(d) None of the above

Answer

Answer: (a) NFIA


 

6. GDPMP exceeds GDPFC by_____
(a) Direct tax
(b) Net indirect tax
(c) Indirect tax
(d) All of the above

Answer

Answer: (b) Net indirect tax


 

7. Factor cost represents the_____ of all final goods and services.
(a) Net Indirect tax
(b) Depreciation
(c) Money value
(d) None of the above

Answer

Answer: (c) Money value


 

8. In _______ economy, national income is equal to domestic income.
(a) Mixed
(b) Closed
(c) Open
(d) None of the above

Answer

Answer: (b) Closed


 

9. Domestic income is a ______ concept.
(a) Domestic
(b) International
(c) National
(d) Territorial

Answer

Answer: (d) Territorial


 

10. National income is a ______ concept.
(a) National
(b) Domestic
(c) Territorial
(d) Regional

Answer

Answer: (a) National


 

11. Value added method is also called______ .
(a) Gross value metho
(b) Product method
(c) National income method
(d) None of the above

Answer

Answer: (b) Product method


 

12. Income method is also called______ .
(a) National income method
(b) Product method
(c) Factor payment method
(d) None of the above

Answer

Answer: (c) Factor payment method


 

13. Expenditure method is also called_______ .
(a) Income disposal method
(b) Product method
(c) Factor income method
(d) National income method

Answer

Answer: (a) Income disposal method





14. Intermediate consumption is_______ in domestic and national income.
(a) Included
(b) Excluded
(c) Not mentioned
(d) Combined with final Consumption.

Answer

Answer: (b) Excluded


 

15. Windfall gains are_______ while calculating national income.
(a) Gained
(b) Included
(c) Excluded
(d) None of the above

Answer

Answer: (c) Excluded


 

National Income and Related Aggregates MCQ Questions

16. The three sectors of production are ______, and              .
(a) Primary, secondary, tertiary
(b) Land,labour and Capital
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (a) Primary, secondary, tertiary


 

17. Rent, interest and profits combine to form ______.
(a) Factors payment
(b) Market value
(c) Operating surplus
(d) All of the above

Answer

Answer: (c) Operating surplus


 

18. Inventory investment= __________.
(a) Closing stock
(b) Opening stock
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (a) Closing stock





19. Transfer payments or receipts are ________while calculating national income.
(a) Excluded
(b) Included
(c) Both (a) and (b)
(c) None of the above

Answer

Answer: (a) Excluded


 

20. Interest on loans paid by commercial banks is ______in national income.
(a) Included
(b) Excluded
(c) Not mentioned
(d) Ignored

Answer

Answer: (a) Included


 

21. Compensation paid to employees in kind is ______in national income.
(a) Included
(b) Excluded
(c) Ignored
(d) Not mentioned

Answer

Answer: (a) Included


 

22. Old age pension is a ______ income.
(a) Factor income
(b) Transfer income
(c) Money
(d) None of the above

Answer

Answer: (b) Transfer income


 

23. Wages and salaries is a ______ income.
(a) Factor
(b) Transfer
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (a) Factor





24. GDP at current year prices is called ______.
(a) Real GDP
(b) Deflated GDP
(c) Nominal GDP
(d) All of the above

Answer

Answer: (c) Nominal GDP


 

25. GDP at base year prices is called ______.
(a) Factor GDP
(b) Nominal GDP
(c) Deflated GDP
(c) Real GDP

Answer

Answer: (c) Real GDP


 

26. _______ Is the average price level of all goods and services produced in the economy.
(a) Factor GDP
(b) GDP deflated
(c) Nominal GDP
(d) Real GDP

Answer

Answer: (b) GDP deflated


 

27. _____ Shows the impact of output and price both.
(a) Factor GDP
(b) GDP deflated
(c) Nominal GDP
(d) Real GDP

Answer

Answer: (c) Nominal GDP


 

28. _____ Shows the impact of output only.
(a) Real GDP
(b) Deflated GDP
(c) Nominal GDP
(d) All of the above

Answer

Answer: (a) Real GDP





29. Due to setting up of factory near residential area increase_____but decreases              .
(a) Welfare, GDP
(b) GDP, welfare
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (b) GDP, welfare


 

30. Due to the increase in population of the country, its welfare ______.
(a) Increases
(b) Decreases
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (b) Decreases


 

31. Setting up lights on public roads leads to an increase in ______.
(a) GDP
(b) Welfare
(c) Factor income
(d) Transfer payments

Answer

Answer: (b) Welfare


 

32. ________ Is considered as an index of welfare of the people.
(a) GDP
(b) Transfer payment
(c) Factor income
(d) All of the above

Answer

Answer: (a) GDP


 

33. The aggregates of value added methods sum up to form _______.
(a) NNPMP
(b) NNPFC
(c) GDPMP
(d) GNPFC

Answer

Answer: (c) GDPMP


 

34. The aggregates of income methods sum up to form _______.
(a) NNPMP
(b) NNPFC
(c) NDPFC
(d) NDPMP

Answer

Answer: (c) NDPFC





35. The aggregates of expenditure method sum up to form _______.
(a) NNPMP
(b) NNPFC
(c) GDPMP
(d) GNPFC

Answer

Answer: (c) GDPMP


 

Statement based – National Income and Related Aggregates MCQ Questions

1. Read the following statement given below and choose the correct alternative.
Statement 1- In an open economy, domestic income is always equal to national income.
Statement 2- Government final consumption expenditure is expenditure on the free services provided to the people by the government.
(a) Both are correct
(b) Both are incorrect
(c) Statement 1 is correct and statement 2 is incorrect
(d) Statement 1 is incorrect and statement 2 is correct.

Answer

Answer: (d) Statement 1 is incorrect and statement 2 is correct.


 

2. Read the following statement given below and choose the correct alternative.
Statement 1- Depreciation can be negative also.
Statement 2- Depreciation is also known as consumption of final resources.
(a) Both are correct
(b) Both are incorrect
(c) Statement 1 is correct and statement 2 is incorrect
(d) Statement 1 is incorrect and statement 2 is correct.

Answer

Answer: (b) Both are incorrect


 

3. Read the following statement given below and choose the correct alternative.
Statement 1-Indirect tax can never be negative.
Statement 2- Indirect tax can never be positive.
(a) Both are correct
(b) Both are incorrect
(c) Statement 1 is correct and statement 2 is incorrect
(d) Statement 1 is incorrect and statement 2 is correct

Answer

Answer: (a) Both are correct





4. Read the following statement given below and choose the correct alternative.
Statement 1- Domestic income can be more than national income.
Statement 2- National income is included in Domestic income.
(a) Both are correct
(b) Both are incorrect
(c) Statement 1 is correct and statement 2 is incorrect
(d) Statement 1 is incorrect and statement 2 is correct.

Answer

Answer: (c) Statement 1 is correct and statement 2 is incorrect


 

5. Read the following statement given below and choose the correct alternative.
Statement 1- Imports are separately included in national income as per value added method.
Statement 2-Value of output is value of final product produced by a production unit.
(a) Both are correct
(b) Both are incorrect
(c) Statement 1 is correct and statement 2 is incorrect
(d) Statement 1 is incorrect and statement 2 is correct.

Answer

Answer: (d) Statement 1 is incorrect and statement 2 is correct.


 

6. Read the following statement given below and choose the correct alternative.
Statement 1- Wages and salaries in kind are a part of national income as per income method.
Statement 2- Income of self employed workers is included in National income as per income method.
(a) Both are correct
(b) Both are incorrect
(c) Statement 1 is correct and statement 2 is incorrect
(d) Statement 1 is incorrect and statement 2 is correct.

Answer

Answer: (a) Both are correct


 

7. Read the following statement given below and choose the correct alternative.
Statement 1-Corporate tax is a part of profits.
Statement 2- Free education to children of employees  is an example of compensation in kind .
(a) Both are correct
(b) Both are incorrect
(c) Statement 1 is correct and statement 2 is incorrect
(d) Statement 1 is incorrect and statement 2 is correct

Answer

Answer: (a) Both are correct


 

8. Read the following statement given below and choose the correct alternative.
Statement 1-  Higher GDP will always lead to higher welfare.
Statement 2- Low level of welfare will always lead to higher GDP.
(a) Both are correct
(b) Both are incorrect
(c) Statement 1 is correct and statement 2 is incorrect
(d) Statement 1 is incorrect and statement 2 is correct.

Answer

Answer: (b) Both are incorrect


 

9. Read the following statement given below and choose the correct alternative.
Statement 1- Mixed income includes the income of self employed persons.
Statement 2- Mixed income is a mixer of wages, rent, interest and profit.
(a) Both are correct
(b) Both are incorrect
(c) Statement 1 is correct and statement 2 is incorrect
(d) Statement 1 is incorrect and statement 2 is correct.

Answer

Answer: (a) Both are correct


 

10. Read the following statement given below and choose the correct alternative.
Statement 1- Purchase and sale of financial assets is included in national income.
Statement 2- Income from subsoil assets is included in National income.
(a) Both are correct
(b) Both are incorrect
(c) Statement 1 is correct and statement 2 is incorrect
(d) Statement 1 is incorrect and statement 2 is correct.

Answer

Answer: (d) Statement 1 is incorrect and statement 2 is correct.


 

Assertion based questions – National Income and Related Aggregates MCQ Questions

1.Read the following statement given below and choose the correct alternative.
Assertion (A)- GDPMP , GDPFC , NDPMP and NDPFC are the four aggregates of domestic concepts.
Reason ( R)- Sum of factors income generated within domestic territory is called domestic income.
(a) Both assertion and reason are true. Reason is the correct explanation of assertion
(b) Both assertion and reason are true. Reason is not the correct explanation of assertion.
(c) Assertion is true but the reason is not.
(d) Reason is true but assertion is not.

Answer

Answer: (b) Both assertion and reason are true. Reason is not the correct explanation of assertion.





2. Read the following statement given below and choose the correct alternative.
Assertion (A)- GNPMP , GNPFC , NNPMP and NNPFC are the four aggregates of national concepts.
Reason (R )- National income is the sum of domestic product and net factor income from abroad.
(a) Both assertion and reason are true. Reason is the correct explanation of assertion.
(b) Both assertion and reason are true. Reason is not the correct explanation of assertion
(c) Assertion is true but reason is not
(d) Reason is true but assertion is not.

Answer

Answer: (b) Both assertion and reason are true. Reason is not the correct explanation of assertion


 

3. Read the following statement given below and choose the correct alternative.
Assertion (A) – Domestic income can be greater than national income.
Reason (R )- If factor income from abroad is less than factor income to abroad , NFIA is negative.
(a) Both assertion and reason are true. Reason is the correct explanation of assertion.
(b) Both assertion and reason are true. Reason is not the correct explanation of assertion
(c) Assertion is true but reason is not
(d) Reason is true but assertion is not.

Answer

Answer: (a) Both assertion and reason are true. Reason is the correct explanation of assertion.


 

4. Read the following statement given below and choose the correct alternative.
Assertion (A)- “Market Price” is the market value of final goods and services and “Factor Cost” is the money value of final goods and services.
Reason (R )- Factor income is not included in National income whereas transfer income is included.
(a) Both assertion and reason are true. Reason is the correct explanation of assertion
(b) Both assertion and reason are true. Reason is not the correct explanation of assertion
(c) Assertion is true but reason is not
(d) Reason is true but assertion is not.

Answer

Answer: (c) Assertion is true but reason is not


 

5. Read the following statement given below and choose the correct alternative.
Assertion (A)- By including the value of final goods only we can solve the problem of double counting.
Reason (R )-The problem of double counting doesn’t exist in a closed economy.
(a) Both assertion and reason are true. Reason is the correct explanation of assertion.
(b) Both assertion and reason are true. Reason is not the correct explanation of assertion
(c) Assertion is true but reason is not
(d) Reason is true but reason is not.

Answer

Answer: (c) Assertion is true but reason is not





6. Read the following statement given below and choose the correct alternative.
Assertion (A)-  Intermediate goods are not included in national income
Reason (R )- Production of goods for self consumption is included in national income.
(a) Both assertion and reason are true. Reason is the correct explanation of assertion
(b) Both assertion and reason are true. Reason is not the correct explanation of assertion
(c) Assertion is true but the reason is not.
(d) Reason is true but assertion is not.

Answer

Answer: (b) Both assertion and reason are true. Reason is not the correct explanation of assertion


 

7. Read the following statement given below and choose the correct alternative.
Assertion (A)- Transfer payments are not included in national income.
Reason (R )- Purchase of financial assets is included in the national income.
(a) Both assertion and reason are true. Reason is the correct explanation of assertion.
(b) Both assertion and reason are true. Reason is not the correct explanation of assertion.
(c) Assertion is true but the reason is not.
(d) Reason is true but assertion is not.

Answer

Answer: (d) Reason is true but assertion is not.


 

8. Read the following statement given below and choose the correct alternative.
Assertion (A)- Rent, Interest and profit are termed as transfer Income
Reason (R )- Transfer income is the income received without rendering any productive services in return.
(a) Both assertion and reason are true. Reason is the correct explanation of assertion.
(b) Both assertion and reason are true. Reason is not the correct explanation of assertion.
(c) Assertion is true but the reason is not.
(d) Reason is true but assertion is not.

Answer

Answer: (d) Reason is true but assertion is not.


 

9. Read the following statement given below and choose the correct alternative.
Assertion (A)- GDP deflator refers to the average price level of all gods and services produced in the economy.
Reason (R )- There are two types of GDP, Real GDP and Nominal GDP.
(a) Both assertion and reason are true. Reason is the correct explanation of assertion.
(b) Both assertion and reason are true. Reason is not the correct explanation of assertion.
(c) Assertion is true but reason is not
(d) Reason is true but Assertion is not

Answer

Answer: (b) Both assertion and reason are true. Reason is not the correct explanation of assertion.





10. Read the following statement given below and choose the correct alternative.
Assertion (A)- Variable which is measured at a certain point of time is called flow variable.
Reason (R )- Real GDP is better as it truly reflects the growth of the economy.
(a) Both assertion and reason are true. Reason is the correct explanation of assertion.
(b) Both assertion and reason are true. Reason is not the correct explanation of assertion.
(c) Assertion is true but reason is not
(d) Reason is true but assertion is not.

Answer

Answer: (d) Reason is true but assertion is not.


 

Text based question – National Income and Related Aggregates MCQ Questions

1.Gross means the worth of an item including depreciation. Net means the worth of item barring depreciation.
2.The distinction between these two terms is depreciation.
3.Where depreciation is the normal abatement in the worth of fixed capital resources because of its overall use.
4. It is the consequence of the production process.
Gross = Net + Depreciation Net = Gross – Depreciation
Note: Other names of deterioration are:
(a) Consumption of fixed capital
(b) Capital utilization remittance
(c) Current substitution cost.

1. ______ includes depreciation.
(a) Net
(b) Gross
(c) Production
(d) Tax

Answer

Answer: (b) Gross


 

2. ________ excludes depreciation.
(a) Net
(b) Gross
(c) Subsidy
(d) Interest

Answer

Answer: (a) Net


 

3. Depreciation is the consequence of _________.
(a) Consumption
(b) Gross domestic product
(c) Production process
(d) None of the above

Answer

Answer: (c) Production process





4. Distinction between Gross and Net is known as .
(a) Gross investment
(b) Net investment
(c) Investment
(d) Depreciation

Answer

Answer: (d) Depreciation


 

5. Which of the following are the alternative names of depreciation.
(a) Consumption of fixed capital
(b) Capital utilization remittance
(c) Current substitution cost.
(d) All of the above

Answer

Answer: (d) All of the above


 

 

Matching based questions – National Income and Related Aggregates MCQ Questions

1. Choose the correctly matched pair from the following

Column A Column B
A. Goods having Direct demand 1. Consumer goods.
B. Phases of circular flow of income 2. Stock
C. Inventory investment 3. Depreciation
D. Fall in the value of fixed assets 4. Production, consumption and distribution

(a) A-2
(b) B-4
(c) C-1
(d) D-2

Answer

Answer: (b) B-4





2. Choose the correctly matched pair from the following

Column A Column B
A. Goods used by producer for producing consumer goods 1.Consumer goods
B. Goods used by consumer for direct satisfaction 2. Capital goods
C. Non-marketable transactions 3. Afforestation
D. Positive externalities 4. Household services

(a) A-2
(b) B-3
(c) C-1
(d) D-4

Answer

Answer: (a) A-2


 

National Income and Related Aggregates MCQ Questions

3. Choose the correctly matched pair from the following

Column A Column B
A. Money supply 1.Injection
B. National income 2. Stock
C. Investment 3. Leakage
D. Tax 4. Flow

(a) B-3
(b) A-4
(c) C-1
(d) D-2

Answer

Answer: (c) C-1


 

4. Choose the correctly matched pair from the following

Column A Column B
A. Negative externality 1.Deforestation
B. Expenditure incurred on purchasing intermediate goods 2. Transfer Income
C. Used for consumption by consumer 3. Intermediate cost
D. Unilateral concept 4. Final product

(a) A-1
(b) B-3
(c) C-2
(d) D-4

Answer

Answer: (a) A-1


 

5. Choose the correctly matched pair from the following

Column A Column B
A. Difference between indirect tax and subsidy 1. Stock variable
B. Residual income of entrepreneurs 2. Net indirect tax
C. Variable of static nature 3. Profit
D. Variable of dynamic nature 4. Flow variable

(a) A-1
(b) B-2
(c) C-3
(d) D-4

Answer

Answer: (d) D-4





CBSE Economics Class 12 MCQ with Answers – Term 2

Part A: Introductory Macroeconomics

Part B: Indian Economic Development

Receive the latest Content

Subscribe To Our Weekly Newsletter

Get notified about new Content