Indian Economy - National Income - MCQs with answers - Part 2
1. Consider the following statements and identify the right ones. i. Personal income refers to the income of individuals of a country.
ii. The income at their disposal after paying direct taxes is called disposable income
a. I only
b. ii only
c. both
d. none
View Answer / Hide AnswerANSWER: c. both
The income of the individuals at their disposal after paying direct taxes like income tax is called disposable income.
a. Transfer payments to individuals
b. Social security contributions
c. Corporate taxes
d. Undistributed profits
View Answer / Hide AnswerANSWER: a. Transfer payments to individuals
Personal income refers to the income of the individuals of a country. While transfer payments are added, the other three are subtracted.
a. Production method
b. Expenditure method
c. Income method
d. All the above
View Answer / Hide AnswerANSWER: d. All the above
Due to non-availability of the data, no single method can solely be used in India. We use a mixture of all the three.
a. NSSO
b. CSO
c. Finance Ministry
d. National Income Committee
View Answer / Hide Answer5. Consider the following statements and identify the right ones. i. CSO is a premier statistical institution for collecting data in India
ii. It presents the national income estimates twice a year.
a. I only
b. ii only
c. both
d. none
View Answer / Hide AnswerANSWER: a. I only
Central Statistical Organization was established in 1950 and is vested with the responsibility of national income estimation. It presents the estimates once in a year.
a. Construction
b. Manufacturing
c. Fisheries
d. Mining
View Answer / Hide AnswerANSWER: c. Fisheries
As per the CSO classification, fisheries fall under the category of agriculture sector.
a. Banking
b. Construction
c. Insurance
d. Real estate
View Answer / Hide AnswerANSWER: b. Construction
As per the CSO classification, construction falls under the category of industrial sector.
a. Electricity
b. gas and water supply
c. transport and communication
d. manufacturing
View Answer / Hide AnswerANSWER: c. transport and communication
As per the CSO classification, transport and communication falls under transport, communication and trade category.
i. The data for NI and PCI are collected at current prices.
ii. They are deflated using the deflator index to get value at constant prices.
a. I only
b. ii only
c. both
d. none
View Answer / Hide AnswerANSWER: c. both
This is done so because the national income can increase either due to increase in production of goods and services or in prices.
a. GDP
b. NDP
c. Per capita real income
d. GNP
View Answer / Hide AnswerANSWER: c. Per capita real income
Per capita income is the average income of the country. Per capita real income takes inflation into consideration.
