CUET Economics - Macro - National Income | Free Questions - Page 3

Q1:

2026: 12 May Shift 1

Macro

>

National Income

Medium

Which of the following can be used to measure the change in prices in an economy-

(A) GDP deflator

(B) Industrial Price Index

(C) Rate of inflation

(D) Wholesale price index

Choose the correct answer from the options given below:

(A), (B), and (C) only

(A), (C) and (D) only

(A) and (C) only

(A), (B), and (D) only

Correct Answer

Option 2

Correct Answer

Explanation

Q2:

2026: 12 May Shift 1

Macro

>

National Income

Easy

To get gross domestic product at a factor cost (GDP_FC), which among the following should be deducted from GDP at market price (GDP_MP).

Net indirect taxes.

Current transfers from government

Net factor income from abroad

Depreciation

Correct Answer

Option 1

Correct Answer

Explanation

Q3:

2026: 12 May Shift 1

Macro

>

National Income

Easy

In the base year 2020, a country produced 1000 toys, price was Rs 100 per toy. In 2025 the same country produced 500 toys at price Rs 150 per toy. The value of nominal and real GDP in year 2025 considering 2020 as base year:

Nominal-75000, Real-50000

Nominal-50000, Real-25000

Nominal-750000, Real-500000

Nominal-850000, Real-500000

Correct Answer

Option 1

Correct Answer

Explanation

Q4:

2026: 12 May Shift 1

Macro

>

National Income

Easy

Which of the following can be categorized as a stock varaible?

Income

Annual Profits

Inventory

Production

Correct Answer

Option 3

Correct Answer

Explanation

Q5:

2026: 11 May Shift 2

Macro

>

National Income

Easy

Nation X produces two goods; rice and cloth. A consumer buys 100 kg of rice and 10 pieces of cloth in a year. Suppose, in the year 2000, the price of rice was Rs 10/kg and a piece of cloth was Rs 100. Now suppose the prices of a kg rice and a piece of cloth have gone up to Rs 18 and Rs 120 in the year 2005. In the given example, the Consumer Price Index of the current year vis-a-vis the base year will be equal to ________.

125

66.66

150

200

Correct Answer

Option 3

Correct Answer

Explanation

Q6:

2026: 11 May Shift 2

Macro

>

National Income

Medium

Which of the following will be included in the estimation of National Income of India?

Retained earnings by the Korean Hyundai automobile company in India.

Wages earned by an Indian resident working Abroad.

Grant in Aid abroad.

Subsidies.

Correct Answer

Option 2

Correct Answer

Explanation

Q7:

2026: 11 May Shift 2

Macro

>

National Income

Easy

Each producer of commodities intends to sell her output to the consumers. The consumer may be an individual or an enterprise and the good or service purchased by that entity might be for final use or for use in further production. When it is used in further production, it often loses its characteristic as that specific good and is transformed through a productive process into another good. Thus a farmer producing cotton sells it to a spinning mill where it transforms into yarn; the yarn is, in turn, sold to a textile mill where, it transforms into cloth; the cloth is, in turn, transforms into an article of clothing which is then ready to be sold finally to the consumers for final use. Such an item that is meant for final use and will not pass through any more stages of production or transformations is called a final good. Final good will not undergo any further transformation at the hands of any producer. It may, however, undergo transformation during their consumption. Thus, it is not in the nature of the good but in the economic nature of its use that a good becomes a final good.

Of the total production taking place in the economy many goods may be used by other producers as material inputs. Examples are steel sheets used for making automobiles. These are intermediate goods, mostly used as raw material for production of other commodities. There are other goods that are of durable character which are used in the production process. These are tools, machines, etc. While they make production of other commodities feasible, they themselves don't get transformed in the production process. They are also final goods yet not for ultimate consumption. These are capital goods and they undergo wear and tear, and thus are repaired or replaced over time.

On the basis of uses the ___________________ nature makes the good final.

Investment

Capital

Social

Economic

Correct Answer

Option 4

Correct Answer

Explanation

Q8:

2026: 11 May Shift 2

Macro

>

National Income

Easy

Each producer of commodities intends to sell her output to the consumers. The consumer may be an individual or an enterprise and the good or service purchased by that entity might be for final use or for use in further production. When it is used in further production, it often loses its characteristic as that specific good and is transformed through a productive process into another good. Thus a farmer producing cotton sells it to a spinning mill where it transforms into yarn; the yarn is, in turn, sold to a textile mill where, it transforms into cloth; the cloth is, in turn, transforms into an article of clothing which is then ready to be sold finally to the consumers for final use. Such an item that is meant for final use and will not pass through any more stages of production or transformations is called a final good. Final good will not undergo any further transformation at the hands of any producer. It may, however, undergo transformation during their consumption. Thus, it is not in the nature of the good but in the economic nature of its use that a good becomes a final good.

Of the total production taking place in the economy many goods may be used by other producers as material inputs. Examples are steel sheets used for making automobiles. These are intermediate goods, mostly used as raw material for production of other commodities. There are other goods that are of durable character which are used in the production process. These are tools, machines, etc. While they make production of other commodities feasible, they themselves don't get transformed in the production process. They are also final goods yet not for ultimate consumption. These are capital goods and they undergo wear and tear, and thus are repaired or replaced over time.

Copper used for making utensils is an example of:

Final Good

Intermediate Good

Capital Good

Investment

Correct Answer

Option 2

Correct Answer

Explanation

Q9:

2026: 11 May Shift 2

Macro

>

National Income

Easy

Each producer of commodities intends to sell her output to the consumers. The consumer may be an individual or an enterprise and the good or service purchased by that entity might be for final use or for use in further production. When it is used in further production, it often loses its characteristic as that specific good and is transformed through a productive process into another good. Thus a farmer producing cotton sells it to a spinning mill where it transforms into yarn; the yarn is, in turn, sold to a textile mill where, it transforms into cloth; the cloth is, in turn, transforms into an article of clothing which is then ready to be sold finally to the consumers for final use. Such an item that is meant for final use and will not pass through any more stages of production or transformations is called a final good. Final good will not undergo any further transformation at the hands of any producer. It may, however, undergo transformation during their consumption. Thus, it is not in the nature of the good but in the economic nature of its use that a good becomes a final good.

Of the total production taking place in the economy many goods may be used by other producers as material inputs. Examples are steel sheets used for making automobiles. These are intermediate goods, mostly used as raw material for production of other commodities. There are other goods that are of durable character which are used in the production process. These are tools, machines, etc. While they make production of other commodities feasible, they themselves don't get transformed in the production process. They are also final goods yet not for ultimate consumption. These are capital goods and they undergo wear and tear, and thus are repaired or replaced over time.

The expected wear and tear that capital goods undergo is called _____.

Consumption of Fixed Capital

Capital Loss

Double Counting

Value Addition

Correct Answer

Option 1

Correct Answer

Explanation

Q10:

2026: 11 May Shift 2

Macro

>

National Income

Easy

Each producer of commodities intends to sell her output to the consumers. The consumer may be an individual or an enterprise and the good or service purchased by that entity might be for final use or for use in further production. When it is used in further production, it often loses its characteristic as that specific good and is transformed through a productive process into another good. Thus a farmer producing cotton sells it to a spinning mill where it transforms into yarn; the yarn is, in turn, sold to a textile mill where, it transforms into cloth; the cloth is, in turn, transforms into an article of clothing which is then ready to be sold finally to the consumers for final use. Such an item that is meant for final use and will not pass through any more stages of production or transformations is called a final good. Final good will not undergo any further transformation at the hands of any producer. It may, however, undergo transformation during their consumption. Thus, it is not in the nature of the good but in the economic nature of its use that a good becomes a final good.

Of the total production taking place in the economy many goods may be used by other producers as material inputs. Examples are steel sheets used for making automobiles. These are intermediate goods, mostly used as raw material for production of other commodities. There are other goods that are of durable character which are used in the production process. These are tools, machines, etc. While they make production of other commodities feasible, they themselves don't get transformed in the production process. They are also final goods yet not for ultimate consumption. These are capital goods and they undergo wear and tear, and thus are repaired or replaced over time.

A farmer producing cotton sells it to a spinning mill where it transforms into yarn; the yarn is, in turn, sold to a textile mill where, it transforms into cloth; the cloth is, in turn, transforms into an article of clothing which is then ready to be sold finally to the consumers for final use.

Based on the above example, while calculating Domestic Income in the economy, we will only include the article of clothing and ignore cotton produced by the farmer, yarn produced by the mill and cloth produced by the textile mill, in order to avoid __________.

Depreciation

Capital Loss

Double Counting

Taxes

Correct Answer

Option 3

Correct Answer

Explanation

Q11:

2026: 11 May Shift 2

Macro

>

National Income

Easy

Each producer of commodities intends to sell her output to the consumers. The consumer may be an individual or an enterprise and the good or service purchased by that entity might be for final use or for use in further production. When it is used in further production, it often loses its characteristic as that specific good and is transformed through a productive process into another good. Thus a farmer producing cotton sells it to a spinning mill where it transforms into yarn; the yarn is, in turn, sold to a textile mill where, it transforms into cloth; the cloth is, in turn, transforms into an article of clothing which is then ready to be sold finally to the consumers for final use. Such an item that is meant for final use and will not pass through any more stages of production or transformations is called a final good. Final good will not undergo any further transformation at the hands of any producer. It may, however, undergo transformation during their consumption. Thus, it is not in the nature of the good but in the economic nature of its use that a good becomes a final good.

Of the total production taking place in the economy many goods may be used by other producers as material inputs. Examples are steel sheets used for making automobiles. These are intermediate goods, mostly used as raw material for production of other commodities. There are other goods that are of durable character which are used in the production process. These are tools, machines, etc. While they make production of other commodities feasible, they themselves don't get transformed in the production process. They are also final goods yet not for ultimate consumption. These are capital goods and they undergo wear and tear, and thus are repaired or replaced over time.

The tea leaves purchased by the consumer, are brewed to make drinkable tea. This is an example of:

Intermediate Good

Capital Good

Final Good

Investment

Correct Answer

Option 3

Correct Answer

Explanation

Q12:

2026: 11 May Shift 1

Macro

>

National Income

Easy

Match the LIST-I with LIST-II

LIST-I		LIST-II
A.	GDP - Depreciation	I. GDP in two-sector economy
B.	Indirect Taxes - Subsidies	II. Disposable income
C.	Y = C + I	III. NDP
D.	Personal Income - Taxes	IV. Net indirect Taxes

Choose the correct answer from the options given below:

A-I, B-II, C-III, D-IV

A-I, B-III, C-IV, D-II

A-III, B-I, C-IV, D-II

A-III, B-IV, C-I, D-II

Correct Answer

Option 4

Correct Answer

Explanation

Q13:

2026: 11 May Shift 1

Macro

>

National Income

Medium

Which of the following is correct option to calculate National Income:

National Income = $NNP_{MP}$ - Net Product Taxes - Net Production Taxes

National Income = $NNP_{MP}$ - Net Product Taxes + Net Production Taxes

National Income = $NNP_{MP}$ + Net Product Taxes - Net Production Taxes

National Income = $NNP_{MP}$ + Net Product Taxes

Correct Answer

Option 1

Correct Answer

Explanation

Q14:

2026: 11 May Shift 1

Macro

>

National Income

Easy

Sl No	Items	Values (In Lacs)
1	Government Spending	7.5
2	Consumption spending	2.85
3	Investment spending	5.75
4	Value of Exports	1.8
5	Value of Imports	2.12
6	Personal income	1.2
7	Disposable income	1.0
8	Depreciation	0.2

Calculate the value of $GDP_{MP}$ of a closed economy from the given table values.

16.10 Lacs

15.80 Lacs

15.65 Lacs

16.80 Lacs

Correct Answer

Option 1

Correct Answer

Explanation

Q15:

2026: 11 May Shift 1

Macro

>

National Income

Easy

Sl No	Items	Values (In Lacs)
1	Government Spending	7.5
2	Consumption spending	2.85
3	Investment spending	5.75
4	Value of Exports	1.8
5	Value of Imports	2.12
6	Personal income	1.2
7	Disposable income	1.0
8	Depreciation	0.2

Calculate the value of $GDP_{MP}$ of an open economy from the given table values

16.42 Lacs

15.78 Lacs

15.75 Lacs

16.22 Lacs

Correct Answer

Option 2

Correct Answer

Explanation

Q16:

2026: 11 May Shift 1

Macro

>

National Income

Easy

Sl No	Items	Values (In Lacs)
1	Government Spending	7.5
2	Consumption spending	2.85
3	Investment spending	5.75
4	Value of Exports	1.8
5	Value of Imports	2.12
6	Personal income	1.2
7	Disposable income	1.0
8	Depreciation	0.2

Calculate the value of net exports

.32 Lacs

.42 Lacs

.22 Lacs

.25 Lacs

Correct Answer

Option 1

Correct Answer

Explanation

Q17:

2026: 11 May Shift 1

Macro

>

National Income

Easy

Sl No	Items	Values (In Lacs)
1	Government Spending	7.5
2	Consumption spending	2.85
3	Investment spending	5.75
4	Value of Exports	1.8
5	Value of Imports	2.12
6	Personal income	1.2
7	Disposable income	1.0
8	Depreciation	0.2

Calculate the NDP at market price of the closed economy from the given table values.

15.80

15.75

15.90

15.88

Correct Answer

Option 3

Correct Answer

Explanation

Q18:

2026: 11 May Shift 1

Macro

>

National Income

Easy

Sl No	Items	Values (In Lacs)
1	Government Spending	7.5
2	Consumption spending	2.85
3	Investment spending	5.75
4	Value of Exports	1.8
5	Value of Imports	2.12
6	Personal income	1.2
7	Disposable income	1.0
8	Depreciation	0.2

Calculate the amount of personal tax.

2,000

2,00,000

22,000

20,000

Correct Answer

Option 4

Correct Answer

Explanation

Q19:

2025: 3 June Shift 2

Macro

>

National Income

Medium

In a simple economy, the circular flow between firms and households in terms of factor payments and services also represents as.

Goods and Services Market.

Factors of Production Market.

Product Market.

Financial Market.

Correct Answer

Option 2

Correct Answer

Explanation

Q20:

2025: 3 June Shift 2

Macro

>

National Income

Medium

When goods and services are evaluated at some constant set of prices, it can also be defined as.

Real GDP.

GDP Deflator.

Constant Prices.

Nominal GDP.

Correct Answer

Option 1

Correct Answer

Explanation

Q21:

2025: 3 June Shift 2

Macro

>

National Income

Medium

The change in the inventory of a firm is treated as an investment. What are the major categories of investment?

(A) Investment Expenditure.

(B) Autonomous Investment.

(C) Fixed Business Investment.

(D) Residential Investment.

Choose the correct answer from the options given below:

(A), (C) and (D) only

(A), (B) and (D) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 4

Correct Answer

Explanation

Q22:

2025: 3 June Shift 2

Macro

>

National Income

Medium

Match List-I with List-II

List-I	List-II
(A) GNP $_{MP}$ - Depreciation	(I) NNP $_{MP}$
(B) GDP $_{MP}$ + NFIA	(II) GNP $_{MP}$
(C) NNP $_{MP}$ - Net Product Taxes - Net Production Taxes	(III) GDP $_{MP}$
(D) GVA $_{MP}$	(IV) NNP $_{FC}$

Choose the correct answer from the options given below:

(A) - (II), (B) - (I), (C) - (III), (D) - (IV)

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Correct Answer

Option 3

Correct Answer

Explanation

Q23:

2025: 3 June Shift 2

Macro

>

National Income

Medium

Rahul buys $90 \text{ kg}$ of sugar and $5$ pairs of shoes in a year. In the year $2000$ , the price of a $\text{kg}$ of sugar was $\text{Rs } 10$ and a pair of shoes was $\text{Rs } 100$ . Now suppose the prices of a $\text{kg}$ of sugar and a pair of shoes have gone up to $\text{Rs } 15$ and $\text{Rs } 120$ in the year $2005$ . What is the Consumer Price Index?

$135.29$

$1350$

$600$

$139.29$

Correct Answer

Option 4

Correct Answer

Explanation

Q24:

2025: 3 June Shift 1

Macro

>

National Income

Easy

When nominal Gross Domestic Product is ₹840 crorer and price index is 120, then the Real Gross Domestic Product will be:

₹ 700 crore

₹ 900 crore

₹ 800 crore

₹ 500 crore

Correct Answer

Option 1

Correct Answer

Explanation

Q25:

2025: 3 June Shift 1

Macro

>

National Income

Medium

Identify the scenario which would lead to an increase in GDP, but might not necessarily improve overall welfare?

Reduction in income inequality.

Rapid growth of infrastructure.

Expansion of environmentally harmful industries.

Increased government investment in education and healthcare.

Correct Answer

Option 3

Correct Answer

Explanation

Q26:

2025: 3 June Shift 1

Macro

>

National Income

Medium

Arrange the following steps in calculation of national income, by income method in correct sequence.

(A) Add net factor income from abroad to arrive at national income.

(B) Estimate the factor income paid by each sector.

(C) Identify and classify the income generating units.

(D) Calculating domestic factor income.

Choose the correct answer from the options given below:

(D), (B), (C), (A)

(B), (C), (D), (A)

(C), (A), (D), (B)

(C), (B), (D), (A)

Correct Answer

Option 4

Correct Answer

Explanation

Q27:

2025: 3 June Shift 1

Macro

>

National Income

Medium

Which of the following is added in the estimation of national income?

Payment of an interest by an individual to a bank.

Bonus paid to employees.

National debt interest.

Payment of corporate tax by a firm.

Correct Answer

Option 2

Correct Answer

Explanation

Q28:

2025: 3 June Shift 1

Macro

>

National Income

Easy

Value added refers to which of the following?

Production of durable goods.

Value of output - intermediate consumption.

Production of non durable goods.

Expenditure on intermediate goods.

Correct Answer

Option 2

Correct Answer

Explanation

Q29:

2025: 2 June Shift 1

Macro

>

National Income

Medium

Identify which of the following is not considered as 'Normal Resident' of India?

An Indian citizen working in USA embassy located at New Delhi.

An Indian official working in Indian embassy in China.

An Indian diplomat visiting Canada for a conference.

An Indian working in an American company located in New York for a period of more than 1 year.

Correct Answer

Option 4

Correct Answer

Explanation

Q30:

2025: 2 June Shift 1

Macro

>

National Income

Medium

Arrange the following steps in the calculation of national income, by income method in correct sequence:

(A) Add Net Factor from Abroad to arrive at National Income.

(B) Estimate the factor income estimated by each sector.

(C) Identify and classify the income-generating units.

(D) Calculate domestic factor income.

Choose the correct answer from the options given below:

(A), (B), (D), (C)

(A), (B), (C), (D)

(B), (A), (D), (C)

(C), (B), (D), (A)

Correct Answer

Option 4

Correct Answer

Explanation

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