R4RIN – MCQs, Mock Tests | Economics Economics National Income MCQS Set-2

If C = 200 and I = 40 then Y will equal to:

1. 160
2. 240
3. 200
4. None of these

✅ Correct Answer: 2

Corporate tax is levied on:

1. Landlords
2. Municipal corporations
3. Joint stock companies
4. Importers

✅ Correct Answer: 3

If we deduct direct taxes from personal income we get

1. Net national income
2. Personal saving
3. Disposable income
4. Percapita income

✅ Correct Answer: 3

The largest part of national income goes to:

1. Consumption
2. Investment
3. Saving
4. Transfer payment

✅ Correct Answer: 1

We measure national income by this method:

1. Expenditure method
2. Income method
3. Product method
4. Any of the above

✅ Correct Answer: 2

Which statement is true?

1. NNP = GNP - Depreciation
2. NNP = NI
3. NNP - DPI
4. None of these

✅ Correct Answer: 1

Transfer payments mean:

1. Bank loans
2. The payment without work
3. Tax payments
4. Payments made to all factors of production

✅ Correct Answer: 2

Direct taxes are not included in:

1. NNP
2. PI
3. DPI
4. (a) and (c) of above

✅ Correct Answer: 3

When national income is estimated by expenditure method we include:

1. All govt. expenditure
2. All household expenditure
3. All expenditure of the business sector
4. All of the above

✅ Correct Answer: 4

Which statement is true?

1. Nationl Expenditure = National income
2. Nationl Expenditure = National income + National savings
3. Nationl Expenditure = National income + Taxes
4. Nationl Expenditure = National income - Taxes

✅ Correct Answer: 1

Which statement is true?

1. National Income = National expenditure - indirect taxes
2. NI = GNP - NNP
3. NI = NNP - indirect taxes
4. NI = PI

✅ Correct Answer: 3

There are methods of measuring national income:

1. 5
2. 2
3. 1
4. 3

✅ Correct Answer: 4

If we compare GDP and GNP then:

1. GNP = GDP - net income from abroad
2. GNP = GDP + net income from abroad
3. GNP = NNP - net income from abroad
4. GNP = NNP + net income from abroad

✅ Correct Answer: 2

It is deducted from GNP to get NNP:

1. Indirect taxes
2. Depreciation
3. Direct taxes
4. Transfer payment

✅ Correct Answer: 2

It is added to GDP to get GNP

1. Depreciation allowance
2. Direct taxes
3. Subsidies
4. Net income from abroad

✅ Correct Answer: 4

Select the correct statement:

1. Transfer payment are included in national income
2. Depreciation allowance is a part of GNP
3. Taxes are not included in NNP
4. GDP means Gross Direct Production

✅ Correct Answer: 2

Which is the largest figure:

1. NNP
2. GNP
3. DPI
4. PI

✅ Correct Answer: 2

Which is a flow concept:

1. Number of my shirts
2. My total wealth
3. My monthly income
4. Money supply

✅ Correct Answer: 3

To avoid double counting when GDP is estimated economists:

1. Use GDP deflator
2. Calculte value added at each stage of production
3. Use retail prices
4. Use price of only intermediate goods

✅ Correct Answer: 2

A TV set purchased from a retail store is an example of:

1. Intermediate good
2. Capital good
3. Surplus good
4. Final good

✅ Correct Answer: 4

Undistributed profits are considered:

1. Income earned but not received
2. Income received but not earned
3. Income earned and received
4. None of the above

✅ Correct Answer: 1

Total value of all final goods and services produced in a country during one year is:

1. NNP
2. GNP
3. GDP
4. NI

✅ Correct Answer: 3

Which measure has the larger value (for Pakistan):

1. NNP
2. GNP
3. GDP
4. NI

✅ Correct Answer: 2

In equilibrium position of national income:

1. S > 1
2. S < 1
3. S = 1
4. All are true

✅ Correct Answer: 3

Personal income includes:

1. Direct taxes
2. Indirect taxes
3. Depreciation
4. None of the above

✅ Correct Answer: 1

Personal income includes:

1. Transfer payments
2. Indirect taxes
3. Depreciation
4. All of the above

✅ Correct Answer: 1

If savings exceed investment then:

1. National income rises
2. National income falls
3. National income is not affected
4. None of the above

✅ Correct Answer: 2

If we include it national income will be over-estimated:

1. Transfer payment
2. Income from abroad
3. Illegal income
4. Exports

✅ Correct Answer: 1

It is avoided to make correct estimate of national income:

1. Free services
2. Double counting
3. Export earnings
4. All of the above

✅ Correct Answer: 2

It is not included in estimation of national income:

1. Illegal income
2. ervices of house wifes
3. Imports
4. All are not included

✅ Correct Answer: 4

The goods which are used directly by the people are called:

1. Consumer goods
2. Capital good
3. Direct good
4. None of these

✅ Correct Answer: 1

Circular flow of income links:

1. Income expenditure
2. Exports Imports
3. Govt. taxes Govt. expenditure
4. Saving and investment

✅ Correct Answer: 1

Transfer payments include:

1. Daily wages pensions
2. Pensions Zakat
3. Zakat taxes
4. Taxes pocket money

✅ Correct Answer: 2

This statement is true

1. NI = rent + interest + wages + profit
2. NI = rent + interest + wages + taxes
3. NI = Govt. expenditure + interest + wages + profit
4. NI = rent + interest + wages + pensions

✅ Correct Answer: 1

Determinants of national income are:

1. Natural resources human resources monetary resources
2. Natural resources capital resources monetary resources
3. Natural resources capital resources human resources
4. Natural resources capital resources foreign resources

✅ Correct Answer: 3

National income is estimated by:

1. Product import and export methods
2. Product income and consumption methods
3. Product income and market methods
4. Product income and expenditure methods

✅ Correct Answer: 4

National income of a country does not include:

1. Self services low wages
2. Donations and high salaries
3. Corporate taxes and gifts
4. Illegal incomes and unreported incomes

✅ Correct Answer: 4

This statement is true

1. Inflation does not play any role in distribution of national income
2. Inflation plays unfavourable role in distribution of national income
3. Inflation plays favourable role in distribution of national income
4. Inflation brings equality in aggregate demand and aggregate demand and aggregate supply

✅ Correct Answer: 2

GDP stands for:

1. Great domestic progress
2. Grand development plan
3. Gross domestic product
4. Gross domestic plan

✅ Correct Answer: 3

Gross national product is:

1. Total annual monetary receipts by the prople
2. Total annual spending in the economy
3. Total market value of final goods and services produced by the economy
4. All of the above

✅ Correct Answer: 3

It is NOT a method to measure national income:

1. Adding all expenditure
2. Adding all incomes
3. Adding value of goods and services
4. Adding all taxes

✅ Correct Answer: 4

Macroeconomics is concerned with:

1. Aggregate economic activity
2. Individual decision units
3. How to produce goods
4. How to buy stocks and bonds

✅ Correct Answer: 1

In economics persons having a joint family budget are called:

1. Community
2. Gathering
3. Household
4. Organization

✅ Correct Answer: 3

Which of the following is NOT macroeconomics:

1. Inflation
2. Unemployment
3. The level of output in the economy
4. Level of wages in export industry

✅ Correct Answer: 4

Investment spending includes the purchase of:

1. Stocks (shares)
2. Government bonds
3. Residential construction
4. All of the above

✅ Correct Answer: 4

Which of the following would NOT be included in GNP:

1. Government support to the very poor
2. Government purchase of an airplane
3. Payment for construction of highway
4. The salary paid for the President s secretary

✅ Correct Answer: 1

It is transfer payment:

1. Payment of pocket money to children
2. Financial support to old parents
3. Broker s commission in some auction
4. (a) and (c) of above

✅ Correct Answer: 4

The largest type of income in the Pakistan is:

1. Compensation f employees
2. Proprietors income
3. Rental income
4. Corporate profits

✅ Correct Answer: 1

An open economy:

1. Must be a democracy
2. Is one without taxes
3. Is that interacts with other economies
4. Means world economy

✅ Correct Answer: 3

Which of the following is transfer payment:

1. Paument of college tuition fee
2. Payment for social security
3. Payment of interest
4. Payment for a leased car

✅ Correct Answer: 2

Which of the following is counted in GDP:

1. Sale of used car
2. Purchase of shares of PSO (company)
3. A TV set produced this year but not sold
4. The leisure enjoyed by people

✅ Correct Answer: 3

If government increases taxes private savings:

1. Increase
2. Decrease
3. Become negative
4. Do not change

✅ Correct Answer: 2