A level National Income Quiz 1

16 QuestionsMultiple ChoiceFree Practice

About this quiz

This A level National Income Quiz 1 quiz contains 16 multiple choice questions designed to help you revise and test your A level National Income Quizzes knowledge. Select an answer for each question and click “Submit Answer” to see instant feedback. Take your time and try to score as high as possible!

Description

In this quiz, we shall look at national income. The study of national income in economics has to deal with Gross Domestic Product (GDP), Gross National Product (GNP), and the Net Domestic Product (NDP), among others. We will focus more on the explanation and understanding of these three terms throughout the quiz.

National income generally refers to the value of the goods and services produced by a nation or country during a financial year. Hence, it is the net results of all the economic activities of a nation during a period of 1 year, and it’s evaluated in terms of money. In the introduction, we made mention of GDP, GNP, and NDP. GDP, in other words, refers to the financial measure of the market value of the goods and services produced at a particular time. On the other hand, GNP refers to the total value of goods and services produced by citizens of a country in a given financial year,  irrespective of their situation (or location). Finally, NDP is obtained by: NDP = GDP - Depreciation, and it is defined as an annual measure of the economic output of a country that is adjusted to consider depreciation.

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Progress0 / 16 answered
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Question 1 of 16

 The difference between value of output and value added is: 

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Question 2 of 16

 Product method of calculating national income is also known as: 

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Question 3 of 16

 Transfer payments refer to payments, which are made: 

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Question 4 of 16

 National Income differs from Net National Product at market price by the amount of: 

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Question 5 of 16

  GDPMP = GDP + ________ : 

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Question 6 of 16

 National Income doesn’t include: 

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Question 7 of 16

 Net national product at factor cost is also known as: 

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Question 8 of 16

 In GNP calculation which of the following should be excluded? 

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Question 9 of 16

 If GNP at market prices is Rs 1200 crore, and fixed capital stock is worth Rs 2000 crore which depreciates at the rate of 10% per annum and the net indirect taxes amount is Rs 150 crore. What is the national income? 

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Question 10 of 16

 National income differs from the net national product at market prices by the amount of: 

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Question 11 of 16

  If net factor income from abroad is zero, then: 

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Question 12 of 16

 For the estimation of private income which of the following items has to be added to national income? 

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Question 13 of 16

  While estimating personal income from national income, which of the following items need to be deducted? 

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Question 14 of 16

 Which of the following has to be added to national income to obtain the net national disposable income? 

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Question 15 of 16

 Which of the following is deducted while estimating national income by the value-added method? 

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Question 16 of 16

 The difference between net national product at market prices and net domestic product at market prices is equal to: