Indian Economy - National Income - MCQs with answers - Part 1
1. The financial year in India isa. April 1 to March 31
b. January 1 to December 31
c. March 1 to April 30
d. March 16 to March 15
View Answer / Hide AnswerANSWER: a. April 1 to March 31
National income is calculated for a specific period of time. In India, it is calculated for April 1 to March 31.
i. National income is the monetary value of all final goods and services produced.
ii. Depreciation is deducted from gross value to get the net value
a. I only
b. ii only
c. both
d. none
View Answer / Hide AnswerANSWER: c. both
National Income is the monetary value of all final goods and services that are produced by the residents of the country.
i. While calculating GDP, income generated by foreigners in a country is taken into consideration
ii. While calculating GDP, income generated by nationals of a country outside the country is taken into account
a. I only
b. ii only
c. both
d. none
View Answer / Hide AnswerANSWER: a. I only
While calculating GDP, income generated by nationals of a country outside the country is not taken into account.
a. Net national product
b. Net domestic product
c. Gross national product
d. Disposable income
View Answer / Hide AnswerANSWER: b. Net domestic product
After deducting the depreciation charges of plant and machinery from GDP, we get net value of GDP which is called NDP.
i. While calculating GNP, income generated by foreigners in a country is taken into consideration
ii. While calculating GNP, income generated by nationals of a country outside the country is taken into account
a. I only
b. ii only
c. both
d. none
View Answer / Hide AnswerANSWER: b. ii only
While calculating GNP, income generated by foreigners in a country is not taken into consideration.
a. Net national product
b. Net domestic product
c. Gross national product
d. Disposable income
View Answer / Hide AnswerANSWER: a. Net national product
NNP is the net value of GNP after the depreciation of plant and machinery is deducted.
a. NNP at factor cost
b. NNP at market price
c. GNP at market price
d. GNP at factor cost
View Answer / Hide AnswerANSWER: b. NNP at market price
NNP at market price is calculated by deducting indirect taxes and subsidies from NNP at factor cost.
a. NNP at factor cost
b. NNP at market price
c. GNP at market price
d. GNP at factor cost
View Answer / Hide AnswerANSWER: b. NNP at market price
NNP at factor cost is the value of the NNP when the value of goods and services are taken at the production point.
a. Per capita income
b. Disposable income
c. Inflation rate
d. Real national income
View Answer / Hide AnswerANSWER: d. Real national income
It is adjusted for inflation that is calculated from a reference point which is a base year.
a. Per capita income
b. Disposable income
c. Inflation rate
d. Real national income
View Answer / Hide AnswerANSWER: a. Per capita income
Per capita income is calculated by dividing the total national income by the total population of the year.
