MCQs For NCERT Class 12 Economics Chapter 8 National Income and Related Aggregates

Please refer to the MCQ Questions for Class 12 Economics Chapter 8 National Income and Related Aggregates with Answers. The following National Income and Related Aggregates Class 12 Economics MCQ Questions have been designed based on the latest syllabus and examination pattern for Class 12. Our experts have designed MCQ Questions for Class 12 Economics with Answers for all chapters in your NCERT Class 12 Economics book.

National Income and Related Aggregates Class 12 MCQ Questions with Answers

See below National Income and Related Aggregates Class 12 Economics MCQ Questions, solve the questions and compare your answers with the solutions provided below.

Question . GDP deflator shows change in GDP due to change in the:         
(a) real income
(b) monetary income
(c) price level
(d) flow of goods and services

Question . Which of the following is the better index of economic growth?         
(a) Real GDP
(b) Nominal GDP
(c) Both real as well as nominal GDP
(d) Neither of the two

Question . When nominal GDP is 840 and price index is 1 2 0, real GDP will be:             
(a) 7
(b) 700
(c) 720
(d) 960

Question . Net Factor Income from Abroad =               
(a) National income – Net indirect taxes
(b) National income – Indirect taxes
(c) National income – Domestic income
(d) Domestic income – National income

Question . Which of the following is a factor income?         
(a) Interest
(b) Scholarship
(c) National debt interest
(d) Grants

Question . The producer sector depends on the household sector for the supply of:       
(a) goods and services
(b) factors of production
(c) both (b) and (c)
(d) none of these

Question . Money flows are the reciprocal of:         
(a) monetary flows
(b) real flows
(c) circular flows
(d) inventory flows

Question . Which of the following is a stock variable?       
(a) Interest on capital
(b) Distance between Delhi and Goa
(c) Expenditure of money
(d) All of these

Question . Study of macroeconomics is concerned with:         
(a) theory of demand
(b) determination of aggregate output
(c) general price level
(d) both (b) and (c)

Question . Which of the following is an example of macroeconomics?         
(a) Saving of an individual
(b) Consumption of a household
(c) Price level of a firm
(d) Aggregate demand of an economy

Question . Domestic income:           
(a) is the sum total of factor incomes generated within the domestic territory of a country
(b) is generated by the normal residents as well as non-residents within the domestic territory of a nation
(c) is equal to national income when net factor income from abroad is zero
(d) all of these

Question . Factor payment received by the households for rendering their services as employees of the producing units is called:       
(a) compensation of employees
(c) interest
(b) rent
(d) profit

Question . Which of the following leads to market price?         
(b) Factor cost – Net indirect taxes
(d) Factor cost + Net indirect taxes
(b) Direct taxes + Subsidies
(d) Direct taxes – Subsidies

Question . If GDP Fe = ₹ 24,760, operating surplus = ₹ 13,450, mixed income = fixed capital = ₹ 530, then compensation of employees will be: ₹ 4,260 and consumption of         
(a) ₹ 6,520
(b) ₹ 7,050
(c) ₹ 18,240
(d) ₹ 43,000

Question  . Nominal GDP refers to:         
(a) GDP at constant prices
(c) GDP estimated at current prices
(b) GDP at base year prices
(d) none of these

Question  . Increase in real GDP implies:         
(a) increase in the price level in the economy
(b) increase in the flow of goods and services in the economy
(c) increase in the income level in the economy
(d) none of these

Question . Which of the following is incorrect?             
(a) GDPMP = NDPMP + Depreciation
(b) GNPyc = GNPMP + Net indirect taxes
(c) NNPMP = NDPMP + Net factor income from abroad
(d) ND Pye = GDPyc – Depreciation

Question . Factor incomes are:           
(a) earned incomes
(b) unearned incomes
(c) both earned as well as unearned incomes
(d) neither earned nor unearned incomes

Question . Which of the following is not a transfer payment?               
(a) Gifts from abroad
(b) Retirement pensions
(c) Donations
(d) Grants

Question . Flow of goods and services across different sectors of the economy is called:         
(a) real flow
(b) circular flow
(c) monetary flow
(d) inventory flow

Question . Which of the following is not a flow variable?         
(a) Income
(b) Capital formation
(c) Supply of money in a country
(d) Leakage of water from the overhead tank

Question . A thousand rupee note is an example of:         
(a) stock variable
(c) either stock or flow
(b) flow variable
(d) neither stock nor flow

Question . Partial equilibrium relates to:               
(a) microeconomics
(c) both (a) and (b)
(b) macroeconomics
(d) none of these

Question . Goods that are ready for use by their final users are called:           
(a) intermediate goods
(b) final goods
(c) capital goods
(d) consumer goods

Question . Which of the following is not included in the estimation of national income?         
(a) Brokerage on the sale of bonds
(b) Imputed value of production for self-consumption
(c) Leisure-time activities
(d) Employer’s contribution to provident fund

Question . Which of the following is included in the estimation of national income?         
(a) Unemployment allowances
(b) Defence and security services
(c) Expenditure on second-hand goods
(d) Income from illegal activities

Question  . Retirement pension is:             
(a) a kind of transfer payment
(b) a kind of corporate tax
(c) a kind of deferred wage
(d) none of these

Question . Intermediate goods are those goods:         
(a) which have yet not crossed the boundary line of production
(b) which are purchased by one firm from the other firm for resale
(c) which are not included in the estimation of national product
(d) all of these

Question . Goods that are used-up in a single act of consumption are called:   
(a) durable consumer goods
(b) semi-durable consumer goods
(c) non-durable consumer goods
(d) non-material consumer goods

Question. Net export is:     
(a) Difference between export and import of a country during one year
(b) Difference between export and import of a country during six months
(c) Difference between export and import of a country during plan period
(d) None of the above

Question. Personal income is sum total of income actually received by person from all sources in the form of current transfer payments and ____
(a) Rent
(b) Factor incomes
(c) Profit
(d) Wages

Question. GNDI is Net current transfers from rest of the world plus:
(a) GNP MP
(b) NNPFc
(c) NDPFc
(d) NDPMP

Question. Factor income from NDP accruing to private sector is NDPFc minus income from property and entrepreneurship accruing to government administrative department minus:
(a) Savings of non-departmental govt. enterprise
(b) Savings
(c) Net indirect truces
(d) Corporate truces

Question. Externalities are spillover effects borne by:
(a) Third party (who is neither producer nor consumer)
(b) Producer or 1st party
(c) Consumer or 2nd party
(d) All of the above

Question . Goods that are used by the producers for several years and are of high value are called:   
(a) intermediate goods
(b) final goods
(c) capital goods
(d) both (b) and (c)

Question. Industrial waste driven into rivers is an example of externality(.p ositive/negative)         

Question. _______ the growth of GDP, greater is the flow of goods and services. (Higher/Lower)           

Question. are a limitation of GDP as an in(dMeoxn oeft wareylfa exrech. anges /Non-monetary exchanges)    

Question. is that part of the profit which is retained by the firms. (Distributed profit/Undistributed profit)            

Question. Mixed income refers to the incomes of the . (self-employed persons/employers)                   

Question. refers to change in stock during the year. (Inventory investment/Fixed investment)                    

Question. _______ is a example of stock variable. (Wealth/Income)                    

Question. _______ flows refer to the flow of money across different sectors of the eco(Real/Money)              

Question. _______ is a flow concept.                  

Question. _______ income is an unearned income. (Factor/Transfer)             

Question. GDP at Market Price = NDP at Market Price+ (Indirect Taxes/Depreciation)                 

Question._______ lower the market price of the goods. (Subsidies/Indirect taxes)                   

Question. is also called Consumption and Investment Method. (Income Method/Expenditure Method)                

Question. Intermediate consumption refers to value of inputs. (factor/non-factor)             

Question. Windfall gains included in national income. (are/are not)            

Question. _______ equilibrium is the method of study in microeconomics. (Partial/General)            

Question. Theory of employment is studied under economICs. (micro/macro)                   

Question. Allocation of resources is the central issue in . (microeconomics/macroeconomics)                 

Question. In macroeconomics, micro variables assumed to be constant. (are/are not)              

Question. Nominal GDP refers to GDP at pnces.                   

Question. Current year prices are the prices prevailing during the           

True/ False

Question . GDP fails to account for the impact of externalities on social welfare. True

Question. Environmental pollution causes a loss of social welfare.

 Question. Externalities are only the good impact of an activity without paying the price for that

Question. Microeconomics is concerned with the economy as a whole.

Question. In macroeconomics, there is a limited degree of aggregation.

Question. Capital gain is not included in national income.

Question. GNP at Market Price = GDP at Market Price + Net Factor Income from Abroad.

Question. Depreciation is not included in the Gross Domestic Product at Factor Cost.

Question. Exports are not included in GDP.

Question. Difference between indirect taxes and subsidies is called net indirect taxes.

Question. Scholarships granted to the students are included in the estimation of GDP.

Question. Value Added= Value of Output- Intermediate Consumption.

Question. Households are the owners of the factors of production.

Question. Production of cement is not a flow variable.

Question. A stock variable has no time dimension.

Question. Rent of self-occupied house is not included in national income.

Question. What is true of microeconomics is also true of macroeconomics.

Question. Individual economic agents include consumers and producers.