CUET Economics - Macro - National Income | Free Questions - Page 9

Q1:

2023: 30 May Shift 1

Macro

>

National Income

Easy

Addition to the stock of capital of a firm is known as :

Variable

Stock

Investment

Production

Correct Answer

Option 3

Correct Answer

Explanation

Q2:

2023: 30 May Shift 1

Macro

>

National Income

Easy

Accounting of National Income at constant price is called :

Nominal Income

Real Income

Domestic Income

GDP Deflator

Correct Answer

Option 2

Correct Answer

Explanation

Q3:

2023: 30 May Shift 1

Macro

>

National Income

Medium

To get GVA at basic prices, one among the following will be added to GVA_FC. Choose the correct option from below :

NFIA

Net Production Taxes

Depreciation

Subsidies

Correct Answer

Option 2

Correct Answer

Explanation

Q4:

2023: 29 May Shift 2

Macro

>

National Income

Easy

In case of an unexpected fall in turnover of a firm, who is producing a certain commodity. There will a situation of _______________

Choose the correct option.

Planned accumulation of inventories

Unplanned accumulation of inventories

Unplanned decumulation of inventories

Planned decumulation of inventories

Correct Answer

Option 2

Correct Answer

Explanation

Q5:

2023: 29 May Shift 2

Macro

>

National Income

Medium

Arrange the following operations in a sequential manner in order to calculate $NNP_{FC}$ from $GDP_{MP}$

A. $GDP_{MP}$ - Net Indirect Taxes

B. $NDP_{FC}$ + Net Factor Income From Abroad

C. $GDP_{FC}$ - Depreciation

Choose the correct answer from the options given below:

A, B, C

B, C, A

A, C, B

C, A, B

Correct Answer

Option 3

Correct Answer

Explanation

Q6:

2023: 29 May Shift 2

Macro

>

National Income

Easy

Match List I with List II

	LIST I		LIST II
A.	Product will not pass through further transformation	I.	Capital Good
B.	A product used as raw material or input for production	II.	Final Good
C.	The good which enables for production on process	III.	Consumer Good
D.	Goods purchased by ultimate consumer	IV.	Intermediate Goods

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation

Q7:

2023: 29 May Shift 2

Macro

>

National Income

Easy

Which of the following are correct statements related to stock and flow?

A. Flows are defined over on 1st January

B. Flows are defined over a period of time

C. Flows and stocks are defined as a mutual understanding

D. Stocks are defined from January to December

E. Stocks are defined at a particular point of time

Choose the correct answer from the options given below:

B and E only

A and D only

C and E only

A and B only

Correct Answer

Option 1

Correct Answer

Explanation

Q8:

2023: 29 May Shift 2

Macro

>

National Income

Easy

Real GDP is calculated in a way such that goods and services are evaluated at some constant set of prices. Since these prices remain fixed, if the Real GDP changes we can be sure that it is the volume of production which is undergoing changes. Nominal GDP, on the other hand, is simply the value of GDP at the current prevailing prices.

When value of final goods and services are estimate at current price it is?

Real G.D.P.

Nominal G.D.P.

G.D.P. at constant prices

Consumer Price Index

Correct Answer

Option 2

Correct Answer

Explanation

Q9:

2023: 29 May Shift 2

Macro

>

National Income

Easy

Real GDP is calculated in a way such that goods and services are evaluated at some constant set of prices. Since these prices remain fixed, if the Real GDP changes we can be sure that it is the volume of production which is undergoing changes. Nominal GDP, on the other hand, is simply the value of GDP at the current prevailing prices.

Real G.D.P. increases only when.

Prices increases

Prices decreases

Production increases

Production decreases

Correct Answer

Option 3

Correct Answer

Explanation

Q10:

2023: 29 May Shift 2

Macro

>

National Income

Easy

Real GDP is calculated in a way such that goods and services are evaluated at some constant set of prices. Since these prices remain fixed, if the Real GDP changes we can be sure that it is the volume of production which is undergoing changes. Nominal GDP, on the other hand, is simply the value of GDP at the current prevailing prices.

Keeping output constant nominal GDP increases because.

Prices increase

Prices decrease

Output decrease

Prices increase and output increase

Correct Answer

Option 1

Correct Answer

Explanation

Q11:

2023: 29 May Shift 2

Macro

>

National Income

Easy

Real GDP is calculated in a way such that goods and services are evaluated at some constant set of prices. Since these prices remain fixed, if the Real GDP changes we can be sure that it is the volume of production which is undergoing changes. Nominal GDP, on the other hand, is simply the value of GDP at the current prevailing prices.

Which G.D.P. is the indicator of growth and development of a country?

Nominal G.D.P.

National Income

Real G.D.P.

Domestic Income

Correct Answer

Option 3

Correct Answer

Explanation

Q12:

2023: 29 May Shift 2

Macro

>

National Income

Medium

Real GDP is calculated in a way such that goods and services are evaluated at some constant set of prices. Since these prices remain fixed, if the Real GDP changes we can be sure that it is the volume of production which is undergoing changes. Nominal GDP, on the other hand, is simply the value of GDP at the current prevailing prices.

If output in an economy is decreasing but G.D.P. of country is increasing which G.D.P. it is:

Real G.D.P.

Domestic Income

G.D.P. at Constant Price

Nominal G.D.P.

Correct Answer

Option 4

Correct Answer

Explanation

Q13:

2023: 28 May Shift 2

Macro

>

National Income

Easy

Value Added Method of calculating aggregate annual value of goods and services is also called :

Product Method

Income Method

Expenditure Method

Cost and Revenue Method

Correct Answer

Option 1

Correct Answer

Explanation

Q14:

2023: 28 May Shift 2

Macro

>

National Income

Easy

If the value of nominal GDP is Rs 5500 and of real GDP is Rs 2200, what is the value of GDP Deflator ?

0.4

2.50

1.75

2.25

Correct Answer

Option 2

Correct Answer

Explanation

Q15:

2023: 28 May Shift 2

Macro

>

National Income

Medium

Match List - I with List - II.

List - I | List - II

(A) Income Method | (I) Calculated at current prices

(B) Expenditure Method | (II) Calculated at constant prices

(C) Real GDP | (III) Aggregate of final expenditures

(D) Nominal GDP | (IV) Aggregate of factor incomes

Choose the correct answer from the options given below :

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

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

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

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

Correct Answer

Option 3

Correct Answer

Explanation

Q16:

2023: 28 May Shift 2

Macro

>

National Income

Medium

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

(A) Donations given to a religious institution.

(B) Payment of Income Tax

(C) Scholarship given to students

(D) Profits earned by an Indian company from its branch in France

(E) Purchase of a television set by a consumer household

Choose the correct answer from the options given below :

(A) and (B) Only

(B) and (C) Only

(D) and (E) Only

(A), (C) and (E) Only

Correct Answer

Option 3

Correct Answer

Explanation

Q17:

2023: 28 May Shift 2

Macro

>

National Income

Easy

National Income can also be called :

Net National Product at Market Price

Gross National Product at Factor Cost

Net National Product at Factor Cost

Gross National Product at Market Price

Correct Answer

Option 3

Correct Answer

Explanation

Q18:

2022: 30 Aug Shift 2

Macro

>

National Income

Medium

Given below are the steps for calculation of National Income by value added method. Place them in the correct sequence.

(A) Estimate Gross Domestic Product at market price

(B) Calculate Net Domestic Product at factor cost

(C) Estimation of value of output produced by each firm in all sectors of the economy during the year

(D) Calculate Net National Product at factor cost

Choose the correct answer from the options given below :

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

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

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

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

Correct Answer

Option 1

Correct Answer

Explanation

Q19:

2022: 30 Aug Shift 2

Macro

>

National Income

Medium

Identify which of the following are included in National Income ?

(A) Gifts from abroad

(B) Compensation of employees paid by a company located in India

(C) Prize won in a lottery

(D) Purchase of NCERT textbook by a student

Choose the correct answer from the options given below :

(A) and (B) only

(C) and (D) only

(B) and (C) only

(B) and (D) only

Correct Answer

Option 4

Correct Answer

Explanation

Q20:

2022: 30 Aug Shift 2

Macro

>

National Income

Easy

Which of the following formula is correct ?

Real GDP = $\frac{\text{Price Index}}{\text{Nominal GDP}} \times 100$

Real GDP = $\frac{\text{Nominal GDP}}{\text{Price Index}} \times 100$

Nominal GDP = $\frac{\text{Real GDP}}{\text{Price Index}} \times 100$

Nominal GDP = $\frac{\text{Price Index}}{\text{Real GDP}} \times 100$

Correct Answer

Option 2

Correct Answer

Explanation

Q21:

2022: 30 Aug Shift 2

Macro

>

National Income

Medium

Choose the correct sequence to arrive at $NNP_{FC}$ using value added method.

(A) $GDP_{MP}$ - Depreciation

(B) $NDP_{MP}$ - Net Indirect Taxes

(C) Value of output - Intermediate cost

(D) Domestic income + Net factor income from abroad

Choose the correct answer from the options given below :

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

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

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

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

Correct Answer

Option 4

Correct Answer

Explanation

Q22:

2022: 30 Aug Shift 2

Macro

>

National Income

Medium

Which of the following is NOT included in estimation of national income ?

Commission of an agent from sale of a second hand car.

Wheat kept for self consumption by a farmer

Shares sold in stock market

Services of a lawyer hired by a firm

Correct Answer

Option 3

Correct Answer

Explanation

Q23:

2022: 30 Aug Shift 2

Macro

>

National Income

Medium

Which of the following components, is NOT a part of compensation of employees, while estimating national income ?

Wages and salaries in cash

Rent free house

Term insurance plan by employee

Contribution to provident fund by company

Correct Answer

Option 3

Correct Answer

Explanation

Q24:

2022: 10 Aug Shift 2

Macro

>

National Income

Easy

Economic variables such as 'National Income' and 'profits' can be classified under which of the following heads ?

Stock concept

Flow concept

Depreciation

Final goods

Correct Answer

Option 2

Correct Answer

Explanation

Q25:

2022: 10 Aug Shift 2

Macro

>

National Income

Medium

Which of the following statements are incorrect ?

(A) Circular flow of income does not take place in a closed economy.

(B) Real flow consists of flow of factor services from households to firms.

(C) In a two-sector economy, total production is always equal to total consumption.

(D) Money flow consists of flow of factor payments from households to firms.

Choose the correct answer from the options given below :

(A) and (B) only

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

(A) and (D) only

(C) and (D) only

Correct Answer

Option 3

Correct Answer

Explanation

Q26:

2022: 10 Aug Shift 2

Macro

>

National Income

Easy

Suppose a country only produces bread. In the year 2000 it had produced 100 units of bread, price was Rs. 10 per bread. In 2001, the same country produced 110 units of bread at price was Rs. 15 per bread. In 2001, the nominal and real GDP are : (base year is 2000)

Rs. 1,550 and Rs. 1,000

Rs. 1,400 and Rs. 2,000

Rs. 1,650 and Rs. 1,100

Rs. 1,500 and Rs. 1,000

Correct Answer

Option 3

Correct Answer

Explanation

Q27:

2022: 10 Aug Shift 2

Macro

>

National Income

Easy

Which of the following is considered as an intermediate good ?

Mobile purchased by a student

Car purchased by a household

Seeds and fertilizers purchased by a farmer

Vegetables purchased by households

Correct Answer

Option 3

Correct Answer

Explanation

Q28:

2022: 10 Aug Shift 2

Macro

>

National Income

Medium

Which of the following is included in the estimation of National Income ?

Sugar purchased by a restaurant

Expenditure incurred by a household on goods and services

Contribution towards social security scheme by an employee

Steel purchased by a car manufacturing company

Correct Answer

Option 2

Correct Answer

Explanation

Q29:

2022: 10 Aug Shift 2

Macro

>

National Income

Medium

Suppose in an economy there are only two firms A and B. Calculate Gross Domestic Product at Market Price from the given table.

Items	Firm A	Firm B
Sales	50 Cr	200 Cr
Change in stock	+20 Cr	-30 Cr
Intermediate Consumption	0	100 Cr

Rs. 270 Cr

Rs. 140 Cr

Rs. 330 Cr

Rs. 170 Cr

Correct Answer

Option 2

Correct Answer

Explanation

Q30:

2022: 19 July Shift 2

Macro

>

National Income

Medium

Identify normal residents of India from amongst the following.

Seasonal workers coming to India from Bangladesh.

Medical patients going from India to the U.S.A. for treatment.

A Japanese woman working in the office of W.H.O. located in India for less than one year.

Australian ambassador posted in New Delhi.

Correct Answer

Option 2

Correct Answer

Explanation

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