1. Which of the following is an example of Transfer Income?
Correct : D. all of these
2. Which of the following is an example of an intermediate good?
Correct : D. all of these
3. Out of the following, which aggregate represents 'National Income'?
Correct : C. nnp fc
4. if facor income received from abroad is equal to factor income paid abroad, then which of
the following is not a valid statement?
Correct : D. all are valid
5. Cororate tax is not a part of :
Correct : A. personal income
6. If economic subsidies are added to and Indirect taxes are substracted from the national
income at market prices, then it will be equal to :
Correct : B. national income
7. In which type of economy, domestic income is equal to national income?
Correct : B. closed economy
8. Domestic factor income is another name for:
Correct : A. ndp fc
9. Which of the following ia a part of National Income?
Correct : C. profit
10. NDP at FC is less than National Income when:
Correct : A. net factor income from abroad is positive
11. National income is equal to:
Correct : B. domestic product plus net factor income earned from abroad
12. is the net amount available to households for consuption and saving
Correct : C. personal disposable income
13. GNP exceeds NNP by:
Correct : D. difference between gross investment and net investment
14. GDP MP = Rs.1000 and subsidies = Rs.50, then GDP FC will be :
Correct : A. 1050
15. "Income method" is also known as:
Correct : A. distributive share method
16. Which one is included in National Income?
Correct : D. none of these.
17. 'Distributed Profits' is also known as:
Correct : B. dividend
18. If a farmer sells Wheat to miller for RS.500 and miller sells flour to baker for Rs.700
and baker sells bread to consumer for Rs.1000, then total value added by Miller and baker is:
Correct : A. 500
19. Which of the following is included in domestic income?
Correct : C. pension on retirement
20. Expenditure method focuses on measurement of National income at:
Correct : C. phase of income disposition
21. Which of the following is not an economic activity and hence not included while
estimating national income in india?
Correct : B. a housewife doing household work
22. National product at current prices is higher than national product at constant prices during
a period of :
Correct : A. rising prices
23. Net Factor Income from Abroad is taken into account when National Income is calculated by:
Correct : D. any of the three methods
24. Broker's commission on sale and purchase of second hand goods is included in national
income because:
Correct : C. it is an income earned for rendering productive services
25. The first National Income calculation on a scientific basis in India is in the year
Correct : C. 1931-32
26. Two sector economy consists of:
Correct : A. households, firms
27. Real flow is also known as:
Correct : C. physical flow
28. Which of the following is the consumption sector?
Correct : A. household
29. Real flow refers to the flow of factor services from ------ to -----
Correct : A. firms to households
30. Which of the following constitute the reason for difference between Market prices and
factor cost?
Correct : C. both a and b
31. If factor cost is greater than Market price, then it means that:
Correct : C. indirect taxes < subsidies
32. Final goods refer to those goods which are used either for ............. or for ..........
Correct : A. consumption, investment
33. Net Factor Income from Abroad is:
Correct : D. factor income received from abroad
34. Depreciation means:
Correct : B. loss of fixed assets over time due to wear and tear
35. Non-exclusion principle is related to:
Correct : B. public goods
36. Education is an example of:
Correct : B. merit good
37. Public Goods are:
Correct : B. non – excludable
38. Who is the father of Public Finance:
Correct : A. dalton
39. Incidence of tax means:
Correct : B. indirect money burden
40. Which is the tax shifting
Correct : B. to shift the tax burden on others
41. The equity principle of taxation was propounded by:
Correct : A. adam smith
42. BOP includes
Correct : D. all the above
43. International trade refers to trade between
Correct : B. two countries
44. Under a fixed exchange rate system, ____________________are official changes in the value
of a country's currency relative to other currencies.
Correct : A. devaluation
45. __________ is the deliberate downward adjustment in the official exchange rate, reduces the
currency's value.
Correct : A. devaluation
46. A _______________is an upward adjustment in the official exchange rate, which increases the
value of the currency.
Correct : C. revaluation
47. Which among following is NOT an implication of devaluation?
Correct : A. devaluation makes the country's exports relatively less expensive for foreigners.
48. Which among following is an implication of revaluation?
Correct : D. all the above
49. Devaluation leads to
Correct : D. all the above
50. PDS Stands for:
Correct : A. public distribution system
51. Agricultural Credit is given by.
Correct : D. all of the above
52. India’s Green revolution was most successful in …………Production:
Correct : A. wheat
53. Regional Rural Bank were started in ………………..
Correct : C. 1975
54. The worst form of land tenurs system was…………………….
Correct : A. zamindary
55. When the first industrial policy was introduced ?
Correct : C. 1948.
56. Import quota is :
Correct : B. non-tariff trade barrier
57. Balance of payments must always balance because:
Correct : C. of an accounting connection
58. Trade Policy measures for correction of balance of payments disequilibrium include of export
promotion:
Correct : C. both a & b
59. In calculating India’s balance of payments position, we must: