General Awareness Quiz on National Income- 24th December 2020

Q1.Define National Income-
(a) It is the income derived from factors of production such as Land, Labour, Capital and Entrepreneurship.
(b)It is an annual financial statement of income (receipts) and spending (expenditure) of the
government for a particular financial year
(c)It is the sum of income earned by its residents from the factor services rendered to the production units, both within and outside the geographical boundaries
of the country
(d)Both(a)&(b)
(e)All (a),(b)&(c)

Q2.The 1st Scientific Estimate on National Income was made by-
(a)P. C. Bhattacharya
(b)J.M. Keynes
(c)P.C.Mahalanobis
(d)Dadabhai Naoroji
(e)Prof V.K.R.V Rao

Q3.The government of india appointed the Committee for National Income in which year?
(a)1955
(b)1949
(c)1957
(d)1990
(e)1950

Q4.What is/are the methods of calculating National Income?
(a)Value Added Method
(b)Income Method
(c)Expenditure Method
(d)All of the Above
(e)None of the above

Q5.Why Transfer Incomes are Not included in calculation of National Income?
(a)They do not contribute in flow of goods & services
(b)They do not affect National product directly
(c)They do not contribute to current flow of goods & services
(d)They are not connected with any productive activity & there is no value additon
(e)They are a part of government final consumption expenditure

Q6.What is true about Income Method of calculating national Income?
(a)According to this method, all the incomes that accrue to the factors of production by way of wages, profits, rent interest etc are summed up to obtain National Income.
(b)Income from sale of shares, bonds & debentures will not be included
(c)Windfall gains are included in income method of calculating National Income.
(d)Both(a)&(b)
(e)both(b)&(c)

Q7.The 1st Estimate of National Income was prepared for which year?
(a)1860-61
(b)1861-62
(c)1864-65
(d)1865-66
(e)1867-68

Q8.Which is not a component of Expenditure Method?
(a)Private Final consumption Expenditure
(b)Government Final Consumption Expenditure
(c)Public Final Consumption Expenditure
(d)Gross Domestic Capital Formation
(e)Net Exports

Q9.What are the Measures of National Income?
(a)GDP
(b)NDP
(c)GNP
(d)NNP
(e)All of the above

Q10.Which of the following is/are included in calculating national Income?
(a)Contruction of a new house
(b)winning of a lottery ticket
(c)Purchases by Foreign Tourists
(d)Both(a)&(b)
(e)Both(a)&(c)

Q11.Expenditure Method is also Known as-
(a)Private Income Method
(b)Income disposable Method
(c)Gross National Income
(d)Final Expenditure
(e)Gross fixed capital formation

Q12.Which is/are the steps of calculating National Income by Value added Method?
(a)Identify and classify the production units
(b)Estimate Fross domestic Product at Market price
(c)Calculate Domestic Income
(d)Estimate Net factor Income from Abroad
(e)All of the above

Q13.who was the chairman of the comittee on national income?
(a)P. C. Bhattacharya
(b)Prof V.K.R.V Rao
(c)P.C.Mahalanobis
(d)Dadabhai Naoroji
(e)None of the above

Q14.The method used to measure National Income in different phases of production in the circular flow is known as-
(a)Expenditure Method
(b)Income Method
(c)Value Added Method
(d)Intermediate consumption
(e)Any of the above

Q15.The 1st Scientific Estimate on National Income was made for the year-
(a)1926-27
(b)1915-16
(c)1935-36
(d)1931-32
(e)1939-40

Solutions

S1.Ans.(c)
Sol.It is the sum of income earned by its residents from the factor services rendered to the production units, both within and outside the geographical boundaries of the country.

S2.Ans.(e)
Sol.The 1st Scientific Estimate was made by Prof V.K.R.V Rao.

S3.Ans.(b)
Sol.The government of india appointed the National Income Committee in 1949.

S4.Ans.(d)
Sol.The methods of calculating National Income are-
(a)Value Added Method
(b)Income Method
(c)Expenditure Method

S5.Ans.(d)
Sol.Transfer Incomes are Not included in calculation of National Income as they are not connected with any productive activity & there is no value additon.

S6.Ans.(d)
Sol.About Income Method-
(a)According to this method, all the incomes that accrue to the factors of production by way of wages, profits, rent interest etc are summed up to obtain National Income.
(b)Income from sale of shares, bonds & debentures will not be included.

S7.Ans.(e)
Sol.The 1st Estimate of National Income was prepared by Dadabhai Naoroji for the year 1867-68.

S8.Ans.(c)
Sol.components of Expenditure Method are-
(a)Private Final consumption Expenditure
(b)Government Final Consumption Expenditure
(d)Gross Domestic Capital Formation
(e)Net Exports

S9.Ans.(e)
Sol.Measures of National Income are-
(a)GDP-Gross Domestic Product
(b)NDP-Net Domestic Product
(c)GNP-Gross National Product
(d)NNP-Net National Product
(e)GNI-Gross National Income
(f)NNI-Net National Income

S10..Ans.(e)
Sol.Contruction of a new house is included in calculating national Income as it is a part of capital formation and leads to production of goods and services in the economy &
Purchases by Foreign Tourists are included in calculating national Income as it is part of Exports they are included in national income through Expenditure method.

S11.Ans(b)
Sol.Expenditure Method is also Known as Income Disposable Method.

S12.Ans.(e)
Sol.(a)Identify and classify the production units
(b)Estimate Fross domestic Product at Market price
(c)Calculate Domestic Income
(d)Estimate Net factor Income from Abroad

S13.Ans.(c)
Sol.The government of india appointed the National Income Committee in 1949 , with P.C.Mahalanobis as the Chairman.

S14.Ans.(c)
sol.The method used to measure National Income in different phases of production in the circular flow is known as Value Added Method.

S15.Ans.(d)
Sol.The 1st Scientific Estimate was made by Prof V.K.R.V Rao for the year 1931-32

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