Most Important Questions on National Income

By Shubham Verma|Updated : March 24th, 2021

While preparing for exams, revision is the key to success. So for the aspirants who are preparing for various state exams, here are the Most Important Questions on National Income. These questions can be fruitful in the last-minute revision of the National Income. These questions will help students to fetch more marks in the exams.

Most Important Questions on National Income

1. Real National Income denotes:

(a) National income at constant prices

(b) Per capita income

(c) National Income at current prices

(d) Net factor income

Ans. A

2. Gross National disposable income is equal to ________.

(a) Net National disposable income + Current replacement cost

(b) Net National disposable income - Corporate profit tax

(c) Gross National disposable income - Direct personal taxes

(d) Gross National disposable income - Miscellaneous fees and fines paid by the households

Ans. A

3. The estimates of National Income are prepared by

(a) National Development Council

(b) National Productivity

(c) National Income Council

(d) Central Statistical Organization

Ans. D

4. The value of national income adjusted for inflation is called _________.

(a) Per capita income

(b) Disposable income

(c) Inflation rate

(d) Real national income

Ans. D

5. National income is:

(a) Net National Product (NNP) – indirect taxes.

(b) Net National Product (NNP) at factor cost.

(c) GDP – Indirect Taxes + subsidies.

(d) GNP – Indirect taxes + subsidies.

Ans. B

6. Which one of the following is NOT correct for National Income?

(a) Gross National Product (GNP)> Gross National Income (GNI)

(b) Gross Domestic Product (GDP)=GNP less Net Income from Abroad

(c) Net National Product (NNP)=GNP less Depreciation

(d) Net Domestic Product (NDP)=NNP less Net Income from Abroad

Ans. A

7. In national income calculation, the sum total of gross value added of all the firms in the economy is known as

(a) National Disposable Income

(b) Gross National Product

(c) Gross Domestic Product

(d) National Income

Ans. C

8. Which of the following factors is included while calculating national income through income method?

(a) Undistributed profit

(b) Tax collection

(c) Rental income

(d) None of the above

Ans. C

9. The most important problem of estimating national income is __________.

(a) Unorganised market

(b) Double counting

(c) Population rises

(d) Income inequalities

Ans. B

10. National Income includes

(a) Financial help to earthquake victims

(b) Pocket money of a child

(c) Winning of a lottery prize

(d) Construction of a new house

Ans. D

11. National Income — Undistributed profits – Net interest payments made by households - Corporate tax + Transfer payments to the households from the government and firms is________.

(a) Personal income

(b) Personal Disposable Income

(c) Net National Product at factor cost

(d) National Income

Ans. A

12. Which of the following is added to national income while calculating personal income?

(a) Transfer payments to individuals

(b) Undistributed profits of corporate

(c) Transfer payments made to foreigners

(d) Mixed income of self employed

Ans. A

13. Product method of calculating national income is also known as:

(a) Income method

(b) Value added method

(c) Expenditure method

(d) None of the above

Ans. B

14. Which of the following is not a measure of National Income?

(a) GDP (Gross Domestic Product)

(b) GNP (Gross National Product)

(c) NNP (Net National Product)

(d) None of the above

Ans. D

15. Per Capital Income is obtained by dividing National Income by______.

(a) Total population of the country

(b) Total working population

(c) Area of the country

(d) Volume of the capital used

Ans. A

More from us 

Study Notes (Hindi/English)

Daily Current Affairs for UP Exams

Monthly Current Affairs Quiz

NCERT Books PDF (Hindi/English)

Get Unlimited access to Structured Live Courses and Mock Tests- Online Classroom Program

Get Unlimited access to 70+ Mock Tests-BYJU'S Exam Prep Test Series

Comments

write a comment

UPPSC

UP StateUPPSC PCSVDOLower PCSPoliceLekhpalBEOUPSSSC PETForest GuardRO AROJudicial ServicesAllahabad HC RO ARO RecruitmentOther Exams

Follow us for latest updates