Practice Exam 1 Question 1) GNP - Depreciation is called Answers Option 1 PCI Option 2 GDP Option 3 NNP Option 4 NI Feedback Wrong click Wrong click Correct selection ! Incorrect click Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 2) GDP Deflator is equal to Answers Option 1 Option 2 Option 3 Option 4 Real gdp - Nominal GDP Feedback Wrong click Correct selection ! Wrong click Incorrect click Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 3) Which among the following is a flow concept ? Answers Option 1 Wealth Option 2 Export Option 3 Capital Option 4 Foreign exchange reserve Feedback Wrong click Correct selection ! Wrong click Incorrect click Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 4) NFIA is included in : Answers Option 1 NNPFC Option 2 NDPFC Option 3 GDPFC Option 4 All of the above Feedback Correct selection ! Wrong click Wrong click Incorrect click Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 5) When does NFIA become negative ? Answers Option 1 NDP > NNP Option 2 NDP = NNP Option 3 NNP < NDP Option 4 None of the above Feedback Wrong click Wrong click Correct selection ! Incorrect click Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 6) When does GDP and GNP of an economy become equal ? Answers Option 1 When net factor income from abroad is positive Option 2 When net factor income from abroad is negative Option 3 When net factor income from abroad is zero Option 4 None of the above Feedback Incorrect click Wrong click Correct selection ! Incorrect click Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) 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 Answers Option 1 i)b, ii)c, iii)d, iv)a Option 2 i)c, ii)a, iii)b, iv)d Option 3 i)d, ii)c, iii)b, iv)a Option 4 i)a, ii)c, iii)d, iv)b Feedback Wrong click Correct selection ! Wrong click Incorrect click Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 8) Find the odd one out GNP, NNP, CSO, GDP Answers Option 1 GNP Option 2 GDP Option 3 NNP Option 4 CSO Feedback Wrong click Wrong click Incorrect click Correct selection ! Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 9) GDP + _______ = GNP Answers Option 1 NFIA Option 2 NIT Option 3 Depreciation Option 4 PI Feedback Correct selection ! Wrong click Wrong click Incorrect click Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 10) Give one word National Income ÷ Population Answers Option 1 PI Option 2 Per capita income Option 3 GDP Option 4 Disposable income Feedback Wrong click Correct selection ! Wrong click Incorrect click Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 11) A balanced budget multiplier is unity implies that ₹ 100 increase in 'G' increases National Income by Answers Option 1 150 Option 2 100 Option 3 80 Option 4 50 Feedback Wrong click Correct selection ! Wrong click Incorrect click Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 12) Goods meant either for final consumption or for investment are called Answers Option 1 Final goods Option 2 Consumption goods Option 3 Intermediate goods Option 4 Capital goods Feedback Correct selection ! Wrong click Wrong click Incorrect click Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 13) Net addition to the existing stock of capital is called Answers Option 1 National Income Option 2 Per capita income Option 3 Investment Option 4 Depreciation Feedback Wrong click Wrong click Correct selection ! Incorrect click Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 14) Under Income Method of finding National Income GDP ≡ W + P + In + __ Answers Option 1 C Option 2 X Option 3 G Option 4 R Feedback Wrong click Wrong click Incorrect click Correct selection ! Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 15) Flow of goods and services from one sector to another sector is called Answers Option 1 Money Flow Option 2 Real Flow Option 3 Circular flow Option 4 Factor Income Feedback Wrong click Correct selection ! Wrong click Incorrect click Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) 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 ? Answers Option 1 Planned Accumulation Option 2 Planned decumulation Option 3 Unplanned accumulation Option 4 Unplanned decumulation Feedback Correct selection ! Wrong click Wrong click Incorrect click Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) 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 Answers Option 1 Transfer payments Option 2 Welfare Option 3 Externalities Option 4 Internal economies Feedback Wrong click Wrong click Correct selection ! Incorrect click Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 18) Pick out the correct equation Answers Option 1 GDP = GNP + NFIA Option 2 NDP = GDP - NIT Option 3 NNP = GNP - NIT Option 4 NNP = GNP - Depreciation Feedback Wrong click Wrong click Incorrect click Correct selection ! Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 19) Which of the following is a transfer payment ? Answers Option 1 Rent Option 2 Grants Option 3 Wage Option 4 Profit Feedback Wrong click Correct selection ! Wrong click Incorrect click Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 20) Gross value added = Factor Cost + Depreciation + ___ Answers Option 1 Net Investment Option 2 Net Indirect Tax Option 3 Subsidy Option 4 Savings Feedback Wrong click Wow ! Correct selection Wrong click Incorrect click Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback)