MCQ Economics Class 12 Chapter 2 National Income Accounting Advertisement MacroeconomicsMCQ’s For All Chapters – Macroeconomics Class 12 1. In the wheat-bread example, if farmers produce wheat worth Rs 100 and bakers produce bread worth Rs 200 using Rs 50 of wheat, what is the aggregate value of production?Rs 150Rs 200Rs 300Rs 250Question 1 of 192. What is the value added of the baker in the wheat-bread example?Rs 150Rs 100Rs 200Rs 50Question 2 of 193. What is another name for depreciation?Net investmentConsumption of fixed capitalGross investmentCapital formationQuestion 3 of 194. If a firm produces goods worth Rs 100, uses intermediate goods worth Rs 20 and has capital consumption worth Rs 10, what is its Net Value Added?Rs 60Rs 70Rs 80Rs 90Question 4 of 195. What is inventory?Only machinery used by firmsOnly imported raw materialsStock of unsold finished goods, semi-finished goods or raw materialsTotal wages paid by a firmQuestion 5 of 196. What is the relationship between change in inventories, production and sales?Change in inventories ≡ Production – SalesChange in inventories ≡ Sales – ProductionChange in inventories ≡ Production + SalesChange in inventories ≡ Sales × ProductionQuestion 6 of 197. Which type of investment refers to additions to machinery, factory buildings and equipment?Residential investmentFixed business investmentInventory investment onlyGovernment consumptionQuestion 7 of 198. Unexpected accumulation of inventories can occur when:Sales are unexpectedly highProduction completely stopsSales are unexpectedly lowFirms sell all their stockQuestion 8 of 199. If a firm starts with 100 shirts, produces 1,000 shirts and sells 600 shirts, how many shirts are added to inventory during the year?300400500600Question 9 of 1910. Which of the following is included in GDP under the expenditure method?Expenditure on intermediate goods onlyOnly household savingsFinal consumption, investment, government expenditure and exports minus importsOnly government expenditureQuestion 10 of 1911. In the expenditure method, what does C represent?Aggregate final consumption expenditureCapital depreciationCorporate taxChange in inventoriesQuestion 11 of 1912. In the expenditure method, what does X represent?ImportsExportsInvestmentTaxesQuestion 12 of 1913. In the equation GDP = C + I + G + X – M, what does M represent?Money supplyManufacturing outputAggregate imports expenditureMarket priceQuestion 13 of 1914. Which component of the expenditure equation is described as the most unstable?Consumption expenditureGovernment expenditureExportsInvestment expenditureQuestion 14 of 1915. According to the income method, GDP is the sum of:Wages, profits, interest and rentsConsumption, savings, taxes and importsExports, imports, wages and taxesInvestment, savings, subsidies and exportsQuestion 15 of 1916. What is the formula for GNP?GNP = GDP – DepreciationGNP = GDP + Net factor income from abroadGNP = GDP + Net indirect taxesGNP = GDP – SubsidiesQuestion 16 of 1917. What is the formula for Net National Product (NNP)?NNP = GDP + DepreciationNNP = GNP + DepreciationNNP = GNP – DepreciationNNP = GDP – ExportsQuestion 17 of 1918. National Income is defined as:GDP at market pricesGNP at market pricesNNP at market pricesNNP at factor costQuestion 18 of 1919. How is NNP at factor cost calculated from NNP at market prices?NNP at market prices + net indirect taxesNNP at market prices – net indirect taxesNNP at market prices + depreciationNNP at market prices – exportsQuestion 19 of 19 Loading...
Leave a Reply