Practice Test

Q1) _________ income data represents the contribution made by different sectors. Show Answer

Q3) While estimating the G.N.P., double ________ should be avoided. Show Answer

Q4) N.I at ________ price is measured with the price level of the base year. Show Answer

Q5) National income is a _________ concept. Show Answer

Q6) N.N.P. at ________ cost is realized as the real national income. Show Answer

Q7) Value of the services of house wives are _________ in National Income. Show Answer

Q8) Rental value of the self-occupied house is _________ NI. Show Answer

Q9) Direct taxes should be __________ for the estimation of NI. Show Answer

Q10) Indirect taxes should be ___________ for the estimation of NI. Show Answer

Q11) In the estimation of NI, the value of goods kept for self-consumption should be _______. Show Answer

Q12) While estimating NI, an investment in shares should be ________. Show Answer

Q13) While estimating NI, the profits of Public Enterprises should be ________. Show Answer

Q14) While estimating NI, unpaid services or transfer incomes should be ________. Show Answer

Q15) In India, income method or factor cost method is used for __________ sector. Show Answer

Q17) _________ method estimates NI with reference to aggregate expenditure of a country. Show Answer

Q18) _________ refers to the wear and tear of its capital equipments. Show Answer

Q19) GNP = _________ + Depreciation. Show Answer

Q20) While estimating NI, the net income from abroad should be __________. Show Answer

Q21) National income is the study of _______ economics. Show Answer

Q22) GNP and GDP are _________. Show Answer

Q23) GNP - Depreciation we get ________. Show Answer

Q24) To obtain National income _________ taxes should be included. Show Answer

Q25) Expenditure method is ________ used to calculate National Income. Show Answer

Q26) ______ method is commonly used in USA. Show Answer

Q27) _________ approach gives more reliable data of National Income. Show Answer

Q28) _______ income is excluded in the calculation of National Income. Show Answer

Q29) As national income increases, consumption also increases but at ______ rate. Show Answer

Q30) At the ______ point national income is equal to consumption. Show Answer

Q31) When consumption expenditure is _______ than national income there is dis-saving. Show Answer

Q32) In national expenditure, we include the expenditure on final demand for goods and services which generate _________ in the economy. Show Answer

Q33) Only final expenditure is taken into account to aviod ________ counting. Show Answer

Q34) National income at _______ price is mesured with the price level of the base year. Show Answer

Q35) Income method is also known as ______ method. Show Answer

Q36) _______ method of estimating national income is more popular in developed countries. Show Answer

Q37) National income is measured _________. Show Answer

Q38) GNP is equal to ________. Show Answer

Q39) NNP at market price = GNP - ________. Show Answer

Q40) ________ income is excluded in the calculation of national income. Show Answer

Q41) _______ approach gives more reliable data of national income. Show Answer

Q42) National income at factor cost does not include _______. Show Answer

Q43) National income at market price does not include _________. Show Answer

Q44) If exports exceed imports, the net income from abroad is _________. Show Answer

Q45) National income measured at constant price is with reference to ________. Show Answer

Q46) If imports exceeds exports, the net income from abroad is _________. Show Answer

Q47) Marshall and Pigou adopted 'production' as the basis of estimation of National Income. Show Answer

Q48) Irving Fisher's definition of NI adopted 'consumption' as the basis for its estimation. Show Answer

Q49) Depreciation is also considered as the capital consumption. Show Answer

Q50) NI at market price includes indirect taxes. Show Answer

Q51) NI at constant prices is estimated on the basis of base year prices. Show Answer

Q52) There is no chances of double counting while estimating the NI. Show Answer

Q53) NNP includes depreciation cost. Show Answer

Q54) Subsidies increase the price of a product in the market. Show Answer

Q55) Expenditure method is the most popular method of estimating NI in India. Show Answer

Q56) GNP is always greater than GDP. Show Answer

Q57) NI is a concept of micro-economics. Show Answer

Q58) Income from theft, smugglers, pickpocketers should be included in NI. Show Answer

Q59) Transfer payments should not be included in NI. Show Answer

Q60) Unpaid services should be included in NI. Show Answer

Q61) ________ refers to money value of all the final goods and services produced by a country during a year. Show Answer

Q62) National income helps the government to Show Answer

Q63) Domestic territory includes Show Answer

Q64) Domestic territory includes Show Answer

Q65) Which of the following concepts of National income takes into consideration the geographical boundaries of a country, rather than the origin of the Factors of production? Show Answer

Q66) Concepts like GDP, GNP, NNP, etc. are measured at Show Answer

Q67) Measurement at market prices constitute Show Answer

Q68) Measurement at Factor cost constitute Show Answer

Q69) Which of the following constitute the reason for difference between market prices and Factor cost? Show Answer

Q70) Which of the following equations is correct? Show Answer

Q71) Which of the following equations is correct? Show Answer

Q72) Indirect taxes minus subsidies is called Show Answer

Q73) The difference between values at market prices and Factor cost is attributed to Show Answer

Q74) If NNP figure is available at market prices, we will ___________ indirect taxes and _________ subsidies to the figure to get National income of the economy. Show Answer

Q75) Concepts like GDP, GNP, NDP, NNP, etc. are measured at Show Answer

Q76) When the value of output for each year is estimated on the basis of the prices prevailing in that year, it constitutes measurement at Show Answer

Q77) When the value of output for each year is estimated on the basis of fixed prices, or prices prevailing at a earlier point of time or in some earlier base year, it constitutes measurement at Show Answer

Q78) Measurement at current prices constitute Show Answer

Q79) Measurement at constant prices constitute Show Answer

Q80) __________ is the money value of all final goods and services produced in the Domestic territory of a country during an accounting year. Show Answer

Q81) __________ is the measure of the market value of all final goods and services produced by Factors of production located within the boundaries of a country, during a specified period of time. Show Answer

Q82) Net Domestic product (NDP) equals Show Answer

Q83) Allowance given for using capital equipment for production is known as Show Answer

Q84) Depreciation allowance is also called as Show Answer

Q85) The difference between GNP and NNP equals Show Answer

Q86) __________ is the sum of the gross Domestic product and net Factor incomes from abroad. Show Answer

Q87) Net National product (NNP) equals Show Answer

Q88) National income refers to ____________ at factor cost. Show Answer

Q89) National income means Show Answer

Q90) Net National Product at Factor cost can be calculated as Show Answer

Q91) Which of the following statements regarding National income is true? Show Answer

Q92) Which of the following statements regarding National income is false? Show Answer

Q93) What is the usual effect of double counting on the National income? Show Answer

Q94) If net factor income from abroad is positive, then which of the following is true? Show Answer

Q95) If net factor income from abroad is zero, then which of the following is true? Show Answer

Q96) If net factor income from abroad is negative, then which of the following is true? Show Answer

Q97) If net factor income from abroad is positive, then which of the following is true? Show Answer

Q98) If net factor income from abroad is zero, then which of the following is true? Show Answer

Q99) If net factor income from abroad is negative, then which of the following is true? Show Answer

Q100) GDP at market price less net indirect taxes equals Show Answer

Q101) GDP at market price less depreciation equals Show Answer

Q102) GDP at factor cost less depreciation equals Show Answer

Q103) GDP at market price plus net Factor income from abroad equals Show Answer

Q104) GDP at factor cost plus net factor income from abroad equals Show Answer

Q105) GNP at market price less net indirect taxes equals Show Answer

Q106) GNP at market price less depreciation equals Show Answer

Q107) GNP at factor cost less depreciation equals Show Answer

Q108) NDP at market price less net indirect taxes equals Show Answer

Q109) NDP at market price plus net factor income from abroad equals Show Answer

Q110) NDP at factor cost plus net factor income from abroad equals Show Answer

Q111) Which of the following equations regarding GDP or GNP at market prices is true? Show Answer

Q112) Which of the following equation is used to arrive at GNP at Factor cost? Show Answer

Q113) ________ is the net flow of output produced in an economy, after adjusting the GNP by amount. Show Answer

Q114) The difference between values at Domestic level and National level is attributed to Show Answer

Q115) In the process of measuring the National income, the difference between National and Domestic product is known as Show Answer

Q116) The Factor income earned by Domestic residents abroad is 500 and the Factor income earned by foreigners in the country is 600. If the GNP of the country is 6000, the GDP of the country is Show Answer

Q117) From the following information compute GNP at market price. GDP at Factor cost = 3000, net Factor income abroad = 200, indirect taxes = 420, subsidies = 240 Show Answer

Q118) Raj an Indian citizen, is working for an Indian MNC in USA. The income earned by Raj is part of Show Answer

Q119) The difference between gross values and net values is attributed to Show Answer

Q120) NNP at MP = NNP at FC, when there is Show Answer

Q122) Which will increase GNP? Show Answer

Q123) GNP - NNP = Show Answer

Q124) National income at market prices, plus subsidies, but less indirect taxes is equal to which one of the following? Show Answer

Q125) ____________ is the sum of all incomes actually received by individuals during a given year. Show Answer

Q126) Personal income = private income minus = __________ Show Answer

Q127) __________ is the net amount available after meeting tax liabilities. Show Answer

Q128) _____________ is the net amount available for consumption and savings. Show Answer

Q129) Which of the following statements is not true? Show Answer

Q130) Consumption of a particular good or service depends on various Factors such as weather, tastes and preferences of the customer availability of the product and its substitutes, etc. but consumption is primarily determined by Show Answer

Q131) Which of the following fiscal policy instruments has a direct impact on people's disposable income? Show Answer

Q132) In a simple economy, National income is Show Answer

Q133) National income may be viewed as a Show Answer

Q134) Which of the following is not, by definition, equal to National income? Show Answer

Q135) National income may be computed under __________ Method. Show Answer

Q136) The three methods of computing national income are Show Answer

Q137) Which of the following is not an approach used to measure national income? Show Answer

Q138) Product method focuses on measurement of national income at Show Answer

Q139) Income method focuses on measurement of national income at Show Answer

Q140) Expenditure method focuses on measurement of National income at Show Answer

Q141) _________ method is suitable for measuring national income in the case of agricultural sector. Show Answer

Q142) __________ method is suitable for measuring national income in the case of small scale sector. Show Answer

Q143) ________ method is suitable for measuring national income in the case of construction sector. Show Answer

Q144) _________ method is suitable for measuring national income in the case of developed countries where all persons file their income tax returns. Show Answer

Q145) _________ method is also called value added method of computing national income. Show Answer

Q146) The net values added method of measuring national income is also known as Show Answer

Q147) The value added by a firm is equal to Show Answer

Q148) Which of the following items are included in computing national income under product method? Show Answer

Q149) In which of the following approaches is national income measured by calculating the total value of the final output of a country? Show Answer

Q150) The annual flow of Factor earnings in the form of wages, rents, interest and profits accured from labour, land, capital and organization respectively are taken into account in which of the following approaches to measuring national income? Show Answer

Q151) Which of the following items are included in computing national income under income method? Show Answer

Q152) Which of the following items are not included in computing national income under income method? Show Answer

Q154) __________ refers to the income where the distinction between capital and labour is not possible, e.g. income of self-employed persons. Show Answer

Q155) Mixed income of the self-employed means Show Answer

Q156) Income method does not include Show Answer

Q157) ___________ sectors have expenditure in the economy. Show Answer

Q158) ___________ method of measuring national income aggregates all the money spent by private citizens, firms and the government within a given year. Show Answer

Q159) __________ constitutes expenditure on consumer goods and services. Show Answer

Q160) _________ constitutes expenditure on capital goods. Show Answer

Q161) Which of the following is not included in gross investment? Show Answer

Q162) Consumption expenditure is done by ___________ sectors of the economy. Show Answer

Q163) Expenditure on defense is Show Answer

Q164) Investment expenditure is done by ___________ sectors of the economy. Show Answer

Q165) Which is not the major source of government saving? Show Answer

Q167) Which of the following is an example of a government transfer payment? Show Answer

Q168) Identify the item which is not a Factor payment. Show Answer

Q169) In computing national income under expenditure method, the expenditure on final goods and services produced ____________ is included. Show Answer

Q170) In computing national income under expenditure method, the expenditure on ____________ is excluded. Show Answer

Q171) In computing national income under expenditure method, government expenditure on pensions, scholarships, unemployment allowance, etc. is Show Answer

Q172) Under expenditure method, consumption expenditure + net domestic investment + replacement expenditure equals Show Answer

Q173) Under expenditure method, consumption expenditure + net domestic investment + net foreign Show Answer

Q174) Under expenditure method, consumption expenditure + net domestic investment equals Show Answer

Q175) Under expenditure method, consumption expenditure + net Domestic investment + net foreign investment equals Show Answer

Q176) Which of the following relationship is true? Show Answer

Q177) Net domestic expenditure is consumption expenditure plus Show Answer

Q178) Which of the following economic policies by governments help maintain full employment and reasonable price stability in an economy? Show Answer

Q179) If the government announces an investment subsidy, which of the following increases? Show Answer

Q180) Per Capita National Income means Show Answer

Q181) Which of the following is correct? Show Answer

Q182) The task of national income estimation to India is entrusted to the Show Answer

Q183) As per IDRA, 1951, small scale industry is one which has investment upto ________ crore in plant and machinery excluding land and building. Show Answer

Q184) In case of enterprises engaged in rendering of services, a small enterprise is one where investment in__________is more than 10 lakhs but less than 2 crores". Show Answer

Q185) The condition of persistent loss and erosion of net worth is known as: Show Answer

Q186) Which of these is not a cause of industrial sickness? Show Answer

Q187) ____________ was set up for rehabilitation of sick units. Show Answer

Q188) Public investment is also known as ________. Show Answer

Q189) Using High Yield variety (HYV) seeds is associated with: Show Answer

Q190) The duration of 11th five year plan is: Show Answer

Q191) Target growth for sixth five year plan is : Show Answer

Q192) A second green revolution is needed to raise the growth rate of agriculture GDP to around Show Answer

Q193) Bureau of Industrial and Financial Reconstruction (BIFR) started its work on Show Answer

Q194) The term industrialization involves: Show Answer

Q195) The principle task of the planning commission is to Show Answer

Q196) The GINI Index for India in 2000-2010 was Show Answer

Q197) The service sector in India now accounts for Show Answer

Q198) In India, Agricultural contributes _____ of the country's GDP. Show Answer

Q199) Which of the following were the major export items in the period immediately after Indian Independence?
1. Fruits, Vegetables & Dairy Products
2. Rice, Wheat & Bajra
3. Textiles, Jute & Tea
4. Computers, Software's & Mobiles

Q200) Substantial improvement in agricultural productivity was achieved through Show Answer

Q201) Green revolution was commenced in year Show Answer

Q202) Initially High Yield Varieties Programme (HYV(D) was restricted to five crops:
1. Rice
2. Wheat
3. Maize
4. Pulses
5. Sugarcane
6. Bajra
7. Tea
8. Jawar
9. Coffee
10. Cashew

Q203) Which of the following type of land tenure system were prevailed in India at the time of independence? Show Answer

Q204) Which of the following is not related to tenancy reform? Show Answer

Q205) Imposing limits on the amount of agricultural land that a family can hold is called Show Answer

Q206) Tourism is example of Show Answer

Q208) Which of the following is largest contribution of GDP in India? Show Answer

Q209) GST was introduced in year Show Answer

Q210) GST is ________ Show Answer

Q211) Which of the following taxes are included in price? Show Answer

Q212) Which of the following are direct taxes?
I. Income tax
II. Goods & Service Tax
IV. Custom Duty
V. Wealth tax

Q213) Direct tax is _________ in nature. Show Answer

Q214) Which of the following tax have been abolished? Show Answer

Q215) Which of the following tax have been abolished? Show Answer

Q216) Presently marginal rate of income tax is Show Answer

Q217) GST is payable on Show Answer

Q218) Under which of the following tax system, more tax is imposed on the lower income group? Show Answer

Q219) Find the correct statement. Show Answer

Q220) Which committee recommended simplification and rationalization of tax system in India? Show Answer

Q221) Which of the following equation is correct? Show Answer

Q222) GDP at factor cost = ___________ Show Answer

Q223) Net National Product (NN(D) equals Show Answer

Q224) National income refers to _________ at Factor Cost. Show Answer

Q225) National income differs from Net National Product at market price by the amount of Show Answer

Q226) GDP at market prices = ________________ Show Answer

Q227) From the following date calculate the GNP at Market Price.
GDP at Factor Cost : 6,000
Net income from abroad : 400
Indirect Taxes : 840

Q228) _________ is the net amount available for consumption and savings. Show Answer

Q229) The production method of calculating national income is also known as Show Answer

Q230) Census of population is done in India at an interval of Show Answer

Q232) India has less than __________ of the World's income. Show Answer

Q233) Which State has the highest population? Show Answer

Q234) Which year is known as "Year of Great Divide"? Show Answer

Q235) In the "Year of Great Divide", there was a __________ growth rate in population. Show Answer

Q236) In India, Sex ratio (2011) is Show Answer

Q237) Which of the following State has most favourable sex ratio? Show Answer

Q238) The ratio of female to male was lowest in Show Answer

Q239) Which of the following State has highest literary rate? Show Answer

Q240) As per theory of Demographic Transition, there are ________ stages in the population growth? Show Answer

Q241) As per theory of Demographic Transition, in First Stage Show Answer

Q242) As per theory of Demographic Transition, in Second Stage Show Answer

Q243) As per theory of Demographic Transition, in Third Stage Show Answer

Q244) India is passing through the phase of Show Answer

Q245) ________ is used for measuring poverty in relative sense. Show Answer

Q246) SJSRY stands for Show Answer

Q247) __________ results in an increasing the purchasing power of people. Show Answer

Q248) Which of the following may suffer due to inflation? Show Answer

Q249) When more money chases relatively less quantity of goods and services it is called as Show Answer

Q250) __________ refers to a situation where prices rises due to increase in factor costs. Show Answer

Q251) The combined phenomenon of stagnation and inflation is called Show Answer

Q252) Stagflation is _________ Show Answer

Q253) The inflation experienced in country at present is Show Answer

Q254) Budget deficit is Show Answer

Q255) The difference between the value of nation's visible exports and visible imports is called as Show Answer

Q256) The economic variable which is measured at a given point of time is known as _____. Show Answer

Q257) Continuous sectoral flow of goods and money in an economy is known as _____. Show Answer

Q258) Continuous sectoral flow of goods and services in an economy is known as _____. Show Answer

Q259) In a closed economy, firms depend on the households for the supply of _____. Show Answer

Q260) Continuous sectoral flow of money in an economy is known as _____. Show Answer

Q261) Identify flow variable from the following. Show Answer

Q262) identify stock variable from the following. Show Answer

Q263) Which of the following is best suited as an example of a normal resident of India? Show Answer

Q264) _____ is the factor remuneration received by the households for providing their productive services to firms as workforce. Show Answer

Q265) Which of the following correctly represents value at Market Price? Show Answer

Q266) Which of the following correctly represents value at national income? Show Answer

Q267) Out of the following, which is the only macroeconomic variable? Show Answer

Q268) Which one of the following is not a part of macro economics? Show Answer

Q269) Rate of increase in per capita income depends upon Show Answer

Q270) A unit of TV is Show Answer

Q271) Which one of the following is not a stock variable? Show Answer

Q272) In a two-sector economy, the condition of equilibrium is: Show Answer

Q273) Net national product at factor cost will generally be: Show Answer

Q275) Which of the following activities is not included in the national income? Show Answer

Q276) The responsibility of collecting data and preparing estimates relating to India's national income has been entrusted to the Show Answer

Q277) Consumption expenditure + net domestic investment + net foreign investment equals. Show Answer

Q278) Which of the following is included in the national income of an economy? Show Answer

Q279) Which of the following does not constitute intermediate consumption? Show Answer

Q280) GNP deflator is equal to Show Answer

Q281) Domestic factor income does not consist of which one of the following? Show Answer

Q282) Which of the following is a negative externality caused to you, if you have a public park next to your house? Show Answer

Q283) Which among the following is a public good? Show Answer

Q284) Items not included in the estimation of national income Show Answer

Q285) Operating surplus includes Show Answer

Q286) Dividend is a component of Show Answer

Q287) Money value of final goods and services, measured at prices of base year Show Answer

Q288) Following will be included in national income Show Answer

Q289) A part of profits Show Answer

Q290) Which of the following is included in domestic income? Show Answer

Q291) Nature of GST is: Show Answer

Q292) Undistributed profits are also known as: Show Answer

Q293) Brokerage paid to the broker for sale and purchase of shares is included in national income because: Show Answer

Q294) Purely financial transactions, not included in national income: Show Answer

Q295) Which one out of the following is the best indicator of economic growth? Show Answer

Q296) With a rise in real national income, welfare of the people: Show Answer

Q297) Presently industrial licensing is not applicable for Show Answer

Q298) 100% FDI is allowed in Show Answer

Q299) Market price of the final goods and services (including depreciation) produced within the domestic territory of a country during an accounting year, is called: Show Answer

Q300) National income is often estimated as: Show Answer

Q301) Domestic product is equal to: Show Answer

Q302) Net indirect taxes are estimated as: Show Answer

Q303) Which of the following is not correct? Show Answer

Q304) Which one is correct? Show Answer

Q305) Basis of the difference between the concepts of market price and factor cost is: Show Answer

Q307) Which one includes depreciation? Show Answer

Q308) Which of the following is an example of normal residents of India? Show Answer

Q309) National income includes: Show Answer

Q310) Financial help to a victim is: Show Answer

Q311) The difference between national income and domestic income is that of: Show Answer

Q312) GNP at market price is measured as: Show Answer

Q313) National income refers to: Show Answer

Q314) Which of the following makes GDP an inappropriate index of welfare? Show Answer

Q315) The impact of an externality is: Show Answer

Q316) Real national income means: Show Answer

Q317) GDP Deflator = Show Answer

Q318) Household inventory is: Show Answer

Q320) Own account production of goods is included in national income because: Show Answer

Q322) Gross domestic capital formation is the sum total of: Show Answer

Q323) Value added method measures the contribution of which of the following within the domestic territory of a country? Show Answer

Q324) Which of the following items is not included while estimating national income by income method? Show Answer

Q325) Which of the following is not an element of final consumption expenditure? Show Answer

Q326) As a result of double counting, national income is: Show Answer

Q327) Which of the following is not Included in national income? Show Answer

Q328) Which of the following is not a transfer payment? Show Answer

Q329) Which of the following items is not included while estimating GNP of a country at market price? Show Answer

Q330) Own account production of services is not included in national income because: Show Answer

Q331) Difference between closing stock and opening stock during an accounting year is known as: Show Answer

Q332) Compensation of employees includes: Show Answer

Q333) Operating surplus = Show Answer

Q334) Which of the following is not included in inventory investment? Show Answer

Q335) Which of the following is not a part of final expenditure? Show Answer

Q336) Problem of double counting can be avoided by using: Show Answer

Q337) Which of the following is irrelevant in the estimation of compensation of employees? Show Answer

Q338) Out of the following, which aggregate represents 'National Income'? Show Answer

Q339) If factor income received from abroad is equal to factor income paid abroad, then which of the following is not a valid statement? Show Answer

Q340) If economic subsidies are added to and indirect taxes are subtracted from the national income at market prices, then it will be equal to: Show Answer

Q341) Which of the following is not a component of operating surplus? Show Answer

Q342) In which type of economy, domestic income is equal to national income? Show Answer

Q343) Domestic factor income is another name for: Show Answer

Q344) Net domestic product at factor cost is less than national income when: Show Answer

Q345) National Income is equal to: Show Answer

Q346) If net national product is given at Market Prices, we indirect taxes and subsidies to get National Income of the economy. Show Answer

Q347) "Almost all of the fourth quarter increase in GDP wound up as unsold inventory sitting on shelves." If it doesn't get sold, how could it get counted into GDP? Show Answer

Q348) "The oil crisis caused U.S. oil companies' overseas profits to shoot up, producing jump in that could mislead policy-makers." The blank should be Show Answer

Q349) "Suppose a new computer is invented that costs one-quarter of existing computers and performs as well. Now when GDP is calculated production of the same number of computers creates only one-quarter as much dollar output - GDP falls!" Show Answer

Q350) "Homemakers often feel their work is taken for granted, and advocates in the women's movement argue that the statistical invisibility of homemakers' work has substantive policy implications." What is meant by "statistical invisibility" here? Show Answer

Q351) "Experts keen on the concept of Green GDP have offered a variety of suggestions to make economic statistics more environmentally friendly." An example of such a suggestion is: Show Answer

Q352) "He claimed that a better measure of Turkish national income could be obtained by including money sent back to their families by Turks living and working in Germany, something that is currently ignored in the national accounts." This income is Show Answer

Q353) "Note that the percent change in the GDP deflator is being used as the measure of inflation rather than the more familiar CPI. The GDP deflator is a price index that samples, not just those paid by consumers." The blank should be Show Answer

Q354) "The government insists that the CPI measures consumer prices, not the cost of living. But don't shoot the CPI - whether bringing good news or bad, it's the best messenger we've got." During a typical inflation Show Answer

Q355) "The rapid development of computers makes it difficult to determine how much of the change in measured prices of computers is due to pure price change or due to the change in quality of the product. It is clear that the cost of obtaining a given amount of computing capability has been falling." If the national accounts statistician makes proper adjustments, this implies that computers should be causing the CPI to Show Answer

Q356) "As best we can tell, responded the central bank governor, the center of the 2 percent inflation target, namely 1 percent, appears to correspond to genuine price stability once the various sources of bias in the CPI are allowed for." An example of bias in the CPI measure is that it Show Answer

Q357) In the new official figures, compared to the old official figures, the 1987 number for real GDP is Show Answer

Q358) In the new official figures, compared to the old official figures, the 1987 number for nominal GDP is Show Answer

Q359) In the new official figures, compared to the old official figures, the 1987 number for the price index is Show Answer

Q360) "The Commerce Department revised its estimate of real GDP to $3.877 trillion, up from the earlier estimate of$3.835 trillion. Before adjusting for inflation, GDP was $4.603 trillion, up from$4.523 trillion." The GDP deflator used for revised calculations is Show Answer

Q361) Suppose that inventories fall by $2b, consumption increases by$8b, unemployment insurance payments decline by $4b and imports rise by$1b. Then measured GDP should rise by Show Answer

Q362) From the data below, the official measure of GDP is Personal Consumption Expenditures 62.0; Depreciation 5.0; Indirect Business Taxes less Subsidies 1.0; Gross Private Domestic Investment 15.0; Exports 12.0; Government Purchases of Goods and Services 20.0 Government Transfer Payments 4.0; Imports 11.0 Show Answer

Q363) Suppose the sum of consumption, investment, and government spending is $620 billion, where investment includes involuntary inventory accumulation of$2 billion in addition to expenditure on plant and equipment, and government spending includes $5 billion interest payments on the national debt,$5 billion unemployment insurance payments, $10 billion social security payments,$2 billion in salaries to elected politicians, $14 billion in salaries to government employees and$25 billion expenditure on goods and services produced by the private sector. If we imported $3 billion more than we exported, measured GDP by the adding expenditures method is Show Answer Q364) If in 1992 nominal GDP is 600 and real GDP is 500, then the price index for 1992 Show Answer Q365) If a typical market basket of goods and services cost$120 in 1975, the base year, and $180 in 1985, the price index in 1985 would be Show Answer Q366) If the price index is 120 in 1989 and 150 in 1990, what is the rate of inflation? Show Answer Q367) Suppose nominal GDP is$566 billion in 1986, $600 billion in 1987 and$642 billion in 1988. If 1986 is the base year, the price index is 105 in 1987, and real growth in 1988 is 3%, from this information, the price index in 1988 is Show Answer

Q368) Suppose hamburgers cost $1.20 last year and$1.32 this year, and the overall price index (the GDP deflator) rose from 110 last year to 120 this year. Show Answer

Q369) If in 1994 nominal GDP is 540 and real GDP is 500, the price index for 1994 is Show Answer

Q370) Suppose the price index is 110 and a typical basket of goods and services costs $3,300. What would this typical basket have cost in the base year? Show Answer Q371) If the CPI changes from 110 in 1993 to 120 in 1994, what is the rate of inflation? Show Answer Q372) The CPI (base year 1987) for 1990 is 120, for 1991 is 125 and for 1992 is 130. If the base year is changed from 1987 to 1992, what does the CPI for 1990 become? Show Answer Q373) If GDP increases in nominal terms from$600 billion in 1994 to $780 billion in 1996 and the price index (1992=100) rises from 120 to 130, how much real growth (in 1992 dollars) in GDP occurred between 1994 and 1996? Show Answer Q374) 1996 income expressed in 1992 dollars is Show Answer Q375) 1996 income expressed in 1995 dollars is Show Answer Q376) Inflation during 1996 was Show Answer Q377) A reduction in inventory is Show Answer Q378) Which of the following is counted as investment in national income accounting? Show Answer Q379) Goods and services are valued at market prices when calculating GDP. Because the "outputs" of government are not sold, they have no market prices. In the actual calculation of GDP Show Answer Q380) That GDP tends to overstate a nation's economic well-being is illustrated by its treatment of which of the following Show Answer Q381) Which of the following will be added to GDP as conventionally calculated? Show Answer Q382) Which of the following raises measured GDP? Show Answer Q383) "But economists believe that one of the most important sources of bias in the CPI as a measure of the cost of living is when consumers shift their buying patterns in response to changing relative prices, buying ..." This clipping is best completed by Show Answer Q384) "Republicans are already eyeing changes to the inflation measure as a way to meet their goal of halving the budget deficit by 2002. The CPI is used to adjust social security and other benefits, and income-tax brackets, for inflation." The suggested changes will lower the deficit because measured inflation will be Show Answer Q385) "A series of methodological improvements to the Consumer Price Index that will continue into 1999 is expected to add about half a percentage point to measured productivity growth, raising the economy's sustainable rate of GDP growth from between 2 percent and 2.25 percent to between 2.5 percent and 2.75 percent." This will increase measured productivity growth because Show Answer Q386) "High demand in this year's economy caught producers unaware, forcing their inventories to absorb this demand." How does this inventory change appear in the GDP calculation when adding up all expenditures? Show Answer Q387) If the typical market basket of goods and services cost$400 in 1995, and the price index (base year 1992) for 1995 is 120, then if this same typical bundle cost \$420 in 1996, the price index in 1996 would be Show Answer

Q388) "The economists who set up GDP also established a number of rather arbitrary conventions to distinguish between investment and consumption components of GDP. Generally, goods and services purchased by households are treated as consumption expenditures, but purchases are a major exception to this rule and are included in the investment category of GDP." The blank is best filled with new Show Answer

Q389) "Because pollution is a byproduct of many production processes, GDP accountants should adjust GDP but do not, causing GDP to economic welfare". The blanks are best filled with Show Answer

Q390) Gross National Product equals: Show Answer

Q391) Net National Product equals: Show Answer

Q392) The standard of living is often measured by: Show Answer

Q393) Real national income measures: Show Answer

Q394) Which of the following statements is true about the circular flow? Show Answer

Q396) To adjust GDP from market prices to factor cost: Show Answer

Q397) Consider the following information :
(I) NDP at market price 77,000
(II) Net Factor Income from abroad (-) 700
(III) Depreciation 1,700
(IV) Subsidies 6,600
(V) Indirect Taxes 7,700
The value of National Income is :

Q398) With a fixed number of firms, when quantity demanded of a commodity is more than quantity supplied, commonly this results in competition among : Show Answer

Q399) Fiscal deficit of a government must be financed by :

Q400) Example of Government securities is :

Q401) Which of the following is FALSE about methods of national income accounting?

Q402) In a particular year, the value of nominal GNP of an economy was Rs 9000 crores. The value of GNP of that economy during the same year, evaluated at the price of the base year, was Rs 10000 crores.The value of GNP deflator for that year in percentage terms was : Show Answer

Q403) Which method of national income accounting is based on the principle that Gross Domestic Product (GDP) is equal to the sum total of gross value added of all the firms in the country's economy ? Show Answer

Q404) India took appropriate measures of important substitution and enhanced domestic production in identified manufactured product. What is the most likely expected out comes ? Show Answer

Q405) There are three methods to calculate national income. Which of the following is not one of the three methods ? Show Answer

Q406) All of the following sectors or businesses are prohibited from Foreign Direct Investment (EID) in India (EXCEPT). Show Answer

Q407) The ratio [ (Nominal GDP) / (Real GDP) ] is known as.

Q408) Which of the following is one of the three accepted methods to calculate a country's national income ? Show Answer

Q409) Gross National Product at Market Prices is :

Q410) Which of the following is correct ?
Net Domestic Product (NDP) at market price equals Show Answer

Q411) Which method of calculating GDP of a country gives the following ?
If there N firms in the economy, each assigned with a serial number from 1 to N. The GDP = GVAi where i varies from 1 to N.

Q412) MR denotes Marginal Revenue, MC denotes Marginal Cost and AR denotes Average Revenue using these, equilibrium of a monopoly firm is defined as the point where Show Answer

Q413) A method of national income according is based on the principal that revenue earned by all the firms put together must be distributed among the factors of production as salaries, wages, profits, rent and interest.
The method is known as : Show Answer

Q414) Which of the following is a source of funds for financing the gross fiscal deficit of the Government of India ? Show Answer

Q415) For the Government of India, (Net borrowing at home) + ( Borrowing from RBI) + (Borrowing from Abroad) is equal to : Show Answer

Q416) Total factor income in the form of wages, profits, rent, interest etc. earned by owners of factors of production for supplying factor services within the domestic territory of a country during an accounting year is also known as : Show Answer

Q417) Which of the following is the correct formula ?

Q418) Which of the following is one of the three commonly accepted methods for calculating a country's national income ?

Q419) In a particular year the value of nominal GDP of an economy was Rs 11000 crores. The value of GDP of that economy during the same year evaluated at the prices of the base year was Rs 10000 crores. The value of GDP deflator for that year in Percentage terms was. Show Answer

Q420) The purchase of an item that is not used now but will be used in future for profit is known as : Show Answer

Q421) Which of the following is alternatively known as the National income ?

Q422) Which method for calculating the national income is based on the idea that revenues earned by all the firms put together must be distributed among the factors of production as salaries, wages, profits, interest earnings and rents ? Show Answer

Q423) Interest receipts on loans previously disbursed by the Government of India are classified as

Q424) Which method for calculating the national income is based on the idea that the GDP of an economy is equal to sum total of gross value added of all the firms in the economy ? Show Answer

Q425) Which of the following is the only CORRECT identity ?

Q426) Consider the following statements :
(I) NNP (at market price) = GNP ( at market price) Depreciation
(II) NNP (at factor cost) = NNP ( at market price) + indirect taxes subjects
Which of the following is correct ? Show Answer

Q427) Consider the following statements :
(i) Change in market demand and technology lead to a need to adopt to the new environmental conditions. An entrepreneur will likely find it easy to embrace charges in employees roles and responsibilities as well as changes to systems.
(ii) Delayed entry does not give an entrepreneur the opportunity to observe and learn from the mistakes of the first mover.
Which of the following is Correct ? Show Answer

Q428) The ratio arrived at using ( Nominal GDP / Real GDP ) is