Here are 50 unique multiple-choice questions (MCQs) with answers on the topic of National Income and Related Aggregates for class 12 and CUET.
- Which of the following is not a component of national income?
a) Personal Income
b) Disposable Income
c) Gross National Product (GNP)
d) Private Income
Answer: c) Gross National Product (GNP) - Gross Domestic Product (GDP) is the total value of all _ produced within a country’s borders in a given time period.
a) Services
b) Goods and services
c) Imports
d) Exports
Answer: b) Goods and services - Net National Product (NNP) is obtained by subtracting _ from Gross National Product (GNP).
a) Gross Domestic Product (GDP)
b) Depreciation
c) Net Exports
d) Government Expenditure
Answer: b) Depreciation - What is the formula for Net Domestic Product at Factor Cost (NDPFC)?
a) NDPFC = GDP – Depreciation
b) NDPFC = GDP + Depreciation
c) NDPFC = GNP – Net Exports
d) NDPFC = GNP – Depreciation
Answer: a) NDPFC = GDP – Depreciation - Which of the following is an example of a transfer payment?
a) Salary payment
b) Pension payment
c) Scholarship
d) Rent payment
Answer: c) Scholarship - The sum of all personal incomes earned in an economy is called:
a) Gross Domestic Product (GDP)
b) National Income
c) Net National Product (NNP)
d) Disposable Income
Answer: b) National Income - Which of the following is an example of a final good in national income accounting?
a) Wheat sold to a bakery
b) Sugar purchased by a soft drink manufacturer
c) A loaf of bread sold to a consumer
d) Steel sold to a car manufacturer
Answer: c) A loaf of bread sold to a consumer - What is the formula for Net National Product at Market Price (NNPMP)?
a) NNPMP = GNP – Net Exports
b) NNPMP = GNP – Depreciation
c) NNPMP = GDP – Depreciation
d) NNPMP = NNPFC + Indirect Taxes – Subsidies
Answer: d) NNPMP = NNPFC + Indirect Taxes – Subsidies - Which of the following is not included in the calculation of National Income?
a) Net foreign factor income
b) Depreciation
c) Net indirect taxes
d) Rent received from a foreign property
Answer: b) Depreciation - The total value of final goods and services produced within a country’s borders in a given time period is known as:
a) Gross National Product (GNP)
b) Gross Domestic Product (GDP)
c) Net National Product (NNP)
d) Gross Value Added (GVA)
Answer: b) Gross Domestic Product (GDP) - Which of the following is an example of a capital receipt?
a) Salary
b) Interest income
c) Loan from a bank
d) Dividend income
Answer: c) Loan from a bank - The sum of personal income and retained earnings of corporations is known as:
a) Gross National Product (GNP)
b) Gross Domestic Product (GDP)
c) Net National Product (NNP)
d) National Income
Answer: d) National Income - In the income method of calculating National Income, which of the following is NOT included?
a) Wages and salaries
b) Transfer payments
c) Interest income
d) Rent received
Answer: b) Transfer payments - Which of the following is NOT a component of disposable income?
a) Personal taxes
b) Personal savings
c) Government savings
d) Transfer payments
Answer: c) Government savings - Depreciation is also known as:
a) Capital formation
b) Capital consumption allowance
c) Gross savings
d) Net factor income
Answer: b) Capital consumption allowance - Which of the following is NOT a method to calculate National Income?
a) Output method
b) Income method
c) Expenditure method
d) Value-added method
Answer: a) Output method - Which of the following is an example of an intermediate good in national income accounting?
a) Flour sold to a bakery
b) Steel used to make car frames
c) Television sold to a consumer
d) A loaf of bread sold to a consumer
Answer: b) Steel used to make car frames - The value of depreciation is deducted from which of the following to arrive at the Net National Product at Market Price (NNPMP)?
a) Gross Domestic Product (GDP)
b) Gross National Product (GNP)
c) Net Domestic Product at Factor Cost (NDPFC)
d) Gross Value Added (GVA)
Answer: b) Gross National Product (GNP) - Which of the following is an example of a non-market activity in national income accounting?
a) Grocery shopping
b) Household cleaning by a family member
c) Buying a car
d) Eating at a restaurant
Answer: b) Household cleaning by a family member - In the expenditure method, which of the following is NOT a component of Gross Domestic Product (GDP)?
a) Consumption expenditure
b) Investment expenditure
c) Government expenditure
d) Exports
Answer: d) Exports - Which of the following is included in the calculation of Gross National Product (GNP)?
a) Net factor income from abroad
b) Indirect taxes
c) Subsidies
d) Transfer payments
Answer: a) Net factor income from abroad - What is the formula for Gross National Product (GNP)?
a) GNP = GDP – Net Exports
b) GNP = GDP – Depreciation
c) GNP = GDP + Net factor income from abroad
d) GNP = NNPFC – Indirect Taxes + Subsidies
Answer: c) GNP = GDP + Net factor income from abroad - **Which of the following is NOT included in the calculation of Gross Domestic Product (GDP)?**
a) Intermediate goods
b) Final goods
c) Investment expenditure
d) Consumption expenditure
Answer: a) Intermediate goods - What is the relationship between Gross National Product (GNP) and Gross Domestic Product (GDP)?
a) GNP is always greater than GDP
b) GNP is always less than GDP
c) GNP is equal to GDP
d) GNP = GDP + Net factor income from abroad
Answer: d) GNP = GDP + Net factor income from abroad - The sum of net factor income from abroad and domestic factor income is known as:
a) Gross National Product (GNP)
b) Gross Domestic Product (GDP)
c) National Income
d) Net National Product (NNP)
Answer: c) National Income - Which of the following is a component of Gross National Product (GNP) but not of Gross Domestic Product (GDP)?
a) Investment expenditure
b) Net factor income from abroad
c) Consumption expenditure
d) Government expenditure
Answer: b) Net factor income from abroad - What is the formula for Net National Product at Market Price (NNPMP)?
a) NNPMP = GNP – Net Exports
b) NNPMP = GNP – Depreciation
c) NNPMP = NNPFC + Net indirect taxes – Subsidies
d) NNPMP = GDP – Depreciation
Answer: c) NNPMP = NNPFC + Net indirect taxes – Subsidies - Which of the following is an example of a transfer payment?
a) Salary payment
b) Pension payment
c) Unemployment benefits
d) Rent payment
Answer: c) Unemployment benefits - Net National Product (NNP) can also be calculated as:
a) NNP = GDP – Net Exports
b) NNP = GNP – Depreciation
c) NNP = NNPFC + Net indirect taxes – Subsidies
d) NNP = NNPMP – Net indirect taxes
Answer: c) NNP = NNPFC + Net indirect taxes – Subsidies - Which of the following is NOT a part of the income method of calculating National Income?
a) Wages and salaries
b) Rent
c) Exports and imports
d) Interest income
Answer: c) Exports and imports - Which of the following is included in the calculation of Net Domestic Product at Factor Cost (NDPFC)?
a) Net indirect taxes
b) Subsidies
c) Depreciation
d) Gross savings
Answer: b) Subsidies - What is the formula for Net National Product at Factor Cost (NNPFC)?
a) NNPFC = GDP – Depreciation
b) NNPFC = GNP – Net Exports
c) NNPFC = NNPMP – Net indirect taxes
d) NNPFC = GNP + Net factor income from abroad
Answer: c) NNPFC = NNPMP – Net indirect taxes - Which of the following is NOT a component of Gross Domestic Product (GDP)?
a) Government expenditure
b) Intermediate goods
c) Investment expenditure
d) Consumption expenditure
Answer: b) Intermediate goods - Which of the following is an example of a capital receipt?
a) Salary
b) Interest income
c) Loan repayment
d) Dividend income
Answer: c) Loan repayment - The sum of personal income and retained earnings of corporations is known as:
a) Gross National Product (GNP)
b) Gross Domestic Product (GDP)
c) Net National Product (NNP)
d) National Income
Answer: d) National Income - In the income method of calculating National Income, which of the following is NOT included?
a) Wages and salaries
b) Transfer payments
c) Interest income
d) Rent received
Answer: b) Transfer payments - Which of the following is NOT included in the calculation of Gross Domestic Product (GDP)?
a) Final goods
b) Intermediate goods
c) Consumption expenditure
d) Government expenditure
Answer: b) Intermediate goods - What is the relationship between Gross National Product (GNP) and Gross Domestic Product (GDP)?
a) GNP is always greater than GDP
b) GNP is always less than GDP
c) GNP is equal to GDP
d) GNP = GDP + Net factor income from abroad
Answer: d) GNP = GDP + Net factor income from abroad - Which of the following is an example of an intermediate good in national income accounting?
a) Flour sold to a bakery
b) Steel used to make car frames
c) Television sold to a consumer
d) A loaf of bread sold to a consumer
Answer: b) Steel used to make car frames - The value of depreciation is deducted from which of the following to arrive at Net National Product at Market Price (NNPMP)?
a) Gross Domestic Product (GDP)
b) Gross National Product (GNP)
c) Net Domestic Product at Factor Cost (NDPFC)
d) Gross Value Added (GVA)
Answer: b) Gross National Product (GNP) - Which of the following is an example of a non-market activity in national income accounting?
a) Grocery shopping
b) Household cleaning by a family member
c) Buying a car
d) Eating at a restaurant
Answer: b) Household cleaning by a family member - In the expenditure method, which of the following is NOT a component of Gross Domestic Product (GDP)?
a) Consumption expenditure
b) Investment expenditure
c) Government expenditure
d) Exports
Answer: d) Exports - Which of the following is included in the calculation of Gross National Product (GNP)?
a) Net factor income from abroad
b) Indirect taxes
c) Subsidies
d) Transfer payments
Answer: a) Net factor income from abroad - What is the formula for Gross National Product (GNP)?
a) GNP = GDP – Net Exports
b) GNP = GDP – Depreciation
c) GNP = GDP + Net factor income from abroad
d) GNP = NNPFC – Indirect Taxes + Subsidies Answer: c) GNP = GDP + Net factor income from abroad - Which of the following is NOT included in the calculation of Gross Domestic Product (GDP)?
a) Intermediate goods
b) Final goods
c) Investment expenditure
d) Consumption expenditure
Answer: a) Intermediate goods - What is the relationship between Gross National Product (GNP) and Gross Domestic Product (GDP)?
a) GNP is always greater than GDP
b) GNP is always less than GDP
c) GNP is equal to GDP
d) GNP = GDP + Net factor income from abroad
Answer: d) GNP = GDP + Net factor income from abroad - The sum of net factor income from abroad and domestic factor income is known as:
a) Gross National Product (GNP)
b) Gross Domestic Product (GDP)
c) National Income
d) Net National Product (NNP)
Answer: c) National Income - Which of the following is a component of Gross National Product (GNP) but not of Gross Domestic Product (GDP)?
a) Investment expenditure
b) Net factor income from abroad
c) Consumption expenditure
d) Government expenditure
Answer: b) Net factor income from abroad - What is the formula for Net National Product at Market Price (NNPMP)?
a) NNPMP = GNP – Net Exports
b) NNPMP = GNP – Depreciation
c) NNPMP = NNPFC + Net indirect taxes – Subsidies
d) NNPMP = GDP – Depreciation
Answer: c) NNPMP = NNPFC + Net indirect taxes – Subsidies - Which of the following is an example of a transfer payment?
a) Salary payment
b) Pension payment
c) Unemployment benefits
d) Rent payment
Answer: c) Unemployment benefits
I hope these questions and answers help you in your preparation!