Tag: economics

Questions Related to economics

Which of the following is a true statement?

i. National income refers to the income of individuals of a country

ii.The income at their disposal after paying direct taxes is called disposable income

 

economics measurement of national income methods of national income methods of measuring national income national income analysis

  1. a. i only

  2. b. ii only

  3. c. both

  4. d. none

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Correct Option: C
Explanation:

Both the given statements are true which says that

National income refers to the income of individuals of a country

The income at their disposal after paying direct taxes is called disposable income

_______ is the wealthiest Indian state which accounts for 12% of the Indian GDP.

economics measurement of national income methods of national income methods of measuring national income national income analysis

  1. Tamil Nadu

  2. Kerala

  3. Maharashtra

  4. Karnataka

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Correct Option: C
Explanation:

Wealthiest Indian state which accounts for 12% of the Indian GDP is Maharashtra. The best facilities like transport, trade etc. including a port has contributed to the immense development of the state.

Mumbai the capital of Maharashtra state is the business capital of India 

To avoid double counting we deduct the value of  ________.

economics measurement of national income methods of national income methods of measuring national income national income analysis

  1. final goods

  2. intermediate goods

  3. raw material

  4. none of the above

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Correct Option: B
Explanation:

Intermediate goods are those goods which are partly finished and are used in the process of production of another goods.

As the intermediate goods are used again in the production of another good, counting the value of these goods may result in double counting. That is why value of intermediate goods are not taken while calculating national income.

There is no possibility of double counting while estimating national income.

economics measurement of national income methods of national income methods of measuring national income national income analysis

  1. True

  2. False

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Correct Option: B

National income at constant price is an estimate on the basis of base prices.

economics measurement of national income methods of national income methods of measuring national income national income analysis

  1. True

  2. False

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Correct Option: A

Distribution of Income and Wealth is measured in terms of ____________.

economics measurement of national income methods of national income methods of measuring national income national income analysis

  1. Real GDP Per Capita

  2. Standard of Living

  3. Fiscal Deficit

  4. Gini Index

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Correct Option: D

One of the problems in correctly estimating national income in India is _____________.

economics measurement of national income methods of national income methods of measuring national income national income analysis

  1. low savings

  2. inflation

  3. under-employment

  4. self-consumption

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Correct Option: D

Which of the following equations is correct?

economics measurement of national income methods of national income methods of measuring national income national income analysis

  1. Value at Factor Cost plus Indirect Taxes minus Subsidies = Value at Market Prices

  2. Value at Factor Cost minus Indirect Taxes minus Subsidies = Value at Market Prices

  3. Value at Factor Cost plus Indirect Taxes plus Subsidies = Value at Market Prices

  4. Value at Factor Cost minus Indirect Taxes plus Subsidies = Value at Market Prices

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Correct Option: A

Which of the following is not a problem in the estimation of India's national income?

economics measurement of national income methods of national income methods of measuring national income national income analysis

  1. Rapid industrialization

  2. Non-monetised consumption

  3. Illiterate people

  4. People holding multiple jobs

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Correct Option: A

Which of the following items are-not included in estimating National income?

economics measurement of national income methods of national income methods of measuring national income national income analysis

  1. Salary income of artists, dancers and singers.

  2. Income of smugglers.

  3. Payments to farm workers in foodgrains.

  4. Payments of bank interest for capital borrowed.

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Correct Option: B