Quiznetik

Introductory Economics 2 | Set 1

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:

Correct : B. omit exports and imports of gold