Plus Two Economics – Chapter 8: Online Practice Exam in English

# Plus Two Economics – Chapter 8: Online Practice Exam in English

## Chapter 8 -National Income Accounting

National Income Accountiong

# Question

1) GNP – Depreciation is called

PCI

GDP

NNP

NI

# Question

2) GDP Deflator is equal to

Real gdp – Nominal GDP

# Question

3) Which among the following is a flow concept ?

Wealth

Export

Capital

Foreign exchange reserve

# Question

4) NFIA is included in :

NNPFC

NDPFC

GDPFC

All of the above

# Question

5) When does NFIA become negative ?

NDP > NNP

NDP = NNP

NNP < NDP

None of the above

# Question

6) When does GDP and GNP of an economy become equal ?

When net factor income from abroad is positive

When net factor income from abroad is negative

When net factor income from abroad is zero

None of the above

# Question

7) Arrange in order

 Concepts Terms i) Value of output – Intermediate concepts a. GNP ii) GDP + NFIA b. NNP iii) GNP – Depreciation c. Value added iv) NNPMP – NIT d. NNPFC

i)b, ii)c, iii)d, iv)a

i)c, ii)a, iii)b, iv)d

i)d, ii)c, iii)b, iv)a

i)a, ii)c, iii)d, iv)b

# Question

8) Find the odd one out

GNP, NNP, CSO, GDP

GNP

GDP

NNP

CSO

# Question

9) GDP + _______ = GNP

NFIA

NIT

Depreciation

PI

# Question

10) Give one word

National Income ÷ Population

PI

Per capita income

GDP

Disposable income

# Question

11) A balanced budget multiplier is unity implies that ₹ 100 increase in ‘G’ increases National Income by

150

100

80

50

# Question

12) Goods meant either for final consumption or for investment are called

Final goods

Consumption goods

Intermediate goods

Capital goods

# Question

13) Net addition to the existing stock of capital is called

National Income

Per capita income

Investment

Depreciation

# Question

14) Under Income Method of finding National Income

GDP ≡ W + P + In + __

C

X

G

R

# Question

15) Flow of goods and services from one sector to another sector is called

Money Flow

Real Flow

Circular flow

Factor Income

# Question

16) The textile owner increases his inventory of cloth morethan his expected sale for the expansion of his shop. Which of the following term is used to denote this ?

Planned Accumulation

Planned decumulation

Unplanned accumulation

Unplanned decumulation

# Question

17) The term used to refer the benefits (or harm) a firm or an individual causes to another firm or an individual for which they are not paid is

Transfer payments

Welfare

Externalities

Internal economies

# Question

18) Pick out the correct equation

GDP = GNP + NFIA

NDP = GDP – NIT

NNP = GNP – NIT

NNP = GNP – Depreciation

# Question

19) Which of the following is a transfer payment ?

Rent

Grants

Wage

Profit

# Question

20) Gross value added = Factor Cost + Depreciation + ___

Net Investment

Net Indirect Tax

Subsidy

Savings

# Question

21) In order to avoid the problem of double counting we use

Income method

Expenditure method

Distributed share method

# Question

22) Net Investment = Gross Investment – ___

Depreciation

Indirect Tax

Net Factor Income

Factor Payment

# Question

23) Net contribution made by a firm in production process is called

Expenditure method

Income method

None of the above

# Question

24) Value of output = Price × ___

Demand

Supply

Quantity

None of the above

# Question

25) Match the following

 A B i NNP a GDP – NFIA ii GNP b Personal Income – Direct Taxes iii Value Added c GNP – Depreciation iv GDP at market prices d Value of output – Intermediate consumption v Disposable income e GDP at factor cost – Net Indirect Tax

i)b, ii)c, iii)d, iv)a, v)e

i)c, ii)a, iii)d, iv)e, v)b

i)d, ii)c, iii)b, iv)a, v)e

i)a, ii)c, iii)d, iv)b, v)e

# Question

26) Find the odd one out

Donation

Bonus

Saving

# Question

27) Write one word

A variable defined at a perticular point of time

Stock

Inventory

Flow

Income

# Question

28) Select consumption good

Tractor

Clothing

Raw Cotton

# Question

29) The index of prices of a given basket of commodities which are bought by a representative consumer is

WPI

CPI

PPI

GDP

# Question

30) Which of the following shows budget deficit ?

G – T

X – M

T – S

S – I

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