ECONOMICS – XII (NATIONAL INCOME & RELATED

AGGREGATES
(MCQ)
1. The difference between gross and net is:

(a) Depreciation (b) NFIA (c) Net Indirect Tax (d) Subsidies

2. The difference between domestic income and National income is____.

(a) NFIA (b) Net Indirect Tax (c) Depreciation (d) All of the above

3. 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

4. If NFIA is positive,

(a) NDPFC = NNPFC (b) NDPFC > NNPFC (c) NDPFC < NNPFC (d) None of the
above

5. 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
6. 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

7. Which of the following is a component of profits?

(a) Corporate tax (b) Dividends (c) Retained earnings (d) All of the above

8. 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

9. The output at current year price is called:

(a) Nominal GDP (b) Real GDP (c) National GDP (d) None of the above

10. If population increase, then:

(a) GDP rise (b) Welfare rise (c) Welfare decrease (d) Both (a) and (c)

Q. 1 Difference between Stock and flow.

Q.2 Distinguish between domestic product and national product.

Q 3. Distinguish between Intermediate good and Final Goods.

Q. 4. What is double counting? How can it be avoided?

Q. 5 (a) Calculate

(i) Gross domestic product at factor cost Items

(ii) Net indirect tax

(iii) Government final consumption expenditure

(iv) Profit

(v) Net domestic capital formation

(vi) Change in stocks

(vii) Private final consumption expenditure

(viii) Net imports

(ix) Net current transfers to abroad

(x) Gross domestic capital formation

(xi) Net factor income to abroad

Q. 5 (b) From the following data calculate GNP at FC by

(a) Income method (b) Expenditure method Items

(i) Net domestic capital formation (ii) Compensation of employees

(iii) Consumption of fixed capital (iv) Govt. final consumption
expenditure (v) PVT. Final consumption expenditure (vi) Rent

(vii) Interest (ix) Net Exports (x) Profits (xi)NFIA (xi) Net Indirect taxes