Mcq on National Income Ppts

8/10/2019 Mcq on National Income Ppts

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MCQ on National inco


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Answers..

Rise in withdrawals falling short of the rise in injections.


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Question 2.

Which of the following is likely to reduce the value of nationaoutput/income?

Rise in withdrawals matching the rise in injections.

Rise in withdrawals exceeding the rise in injections.

Rise in the combined value of investment, public expendituexports, withdrawals unchanged.

Rise in withdrawals falling short of the rise in injections.


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Answers.

Rise in withdrawals exceeding the rise in injections.


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Question 3.

The value of national output produced by residents located withcountry, before depreciation and including the influence of taxesubsidies, is known as:

GDP at factor cost

GDP at market prices

GNP at factor cost

GNP at market prices

NNP at factor cost


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Answers



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Question 4.

The value of national output produced by residents of a countrylocated at home or overseas, after depreciation and excluding of taxes and subsidies, is known as:


GDP at factor cost

NNP at factor cost

GNP at factor cost

GNP at market prices


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Answers

NNP at factor cost


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Question5

The standard of living is often measured by :

Real GDP per capita

Real GDP

Real GDP * population

Real GDP plus depreciation


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Answers

Real GDP


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Question 6.

Which of the following types of unemployment might be involvethe coal industry collapses in the UK as a result of individuals andswitching over to oil, gas and other sources of energy?

Demand deficient unemployment

Real wage unemployment

Regional unemployment

Frictional unemployment


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Answers

Regional unemployment


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Question 7.

Which of the following situations are most likely to result in 'demainflation?

A rise in the combined value of investment and governme5 per cent with no change in productivity.

Increases in the rate of savings and the rate of taxation.

A rise in investment of 5 per cent with a rise of productivity

A fall in the rate of savings and the rate of taxation for an ea considerable amount of excess capacity.


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Answers

A rise in the combined value of investment and government per cent with no change in productivity.


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Question 8.

If National Income rises by 10 billion after an injection of 2 billio'National Income Multiplier' is one-fifth. True or false?

True

False


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Answers

False


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Question 9.

From the options below, which is a type of injection into the circincome?

Exports

Imports

Taxes

Savings


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Answer

Exports


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Question 10.

Name a type of withdrawal from the circular flow of income?

Investment

Government expenditure

Savings

Exports


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Answers

Savings


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Question 11.

If the measured value of National Income via the 'expenditure mgreater than the measured value of National Income via the 'incmethod', we speak of a 'Black Economy'. True or false?

True

False


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Answers

True


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Question 12.

Consumption expenditure is the largest single component of agdemand. True or false?

True

False


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Answers

True


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Question 13.

If everyone saves more, then (all other things being equal) withdthe circular flow will increase and National Income will fall. True o

True

False


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Answers

True


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Question 14.

The Phillips curve suggests that a fall in unemployment is likely torates of wage and price inflation. True or false?

True

False


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Answers

False


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Question 15.

If injections exceed withdrawals at the 'full capacity' level of Nathen we have a 'deflationary gap'. True or false?

True

False


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Answers

False


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Question 16.

If withdrawals fall short of injections at the 'full capacity' level of Income, then we have an 'inflationary gap'. True or false?

True

False


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Answers

True


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Question 17.

A substantial fall in the sterling exchange rate might lead to cosin the UK by raising the sterling price of imports. True or false?

True

False


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Answers

False


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Question 18.

What type of unemployment is involved when new publishing soreduces the number of people needed to produce books?


Technological unemployment

Structural unemployment


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Answers



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Question 19.

What type of unemployment is involved when a sustained fall in for the movement of goods by ships results in a smaller merchan





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Answers



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Question 20.

What type of unemployment is involved when a fall in consumeleads to excess supply in the product markets and layoffs in UK i





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Answers



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Question21GNP deflator show change in GNP because of change in price level

YES

NO


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Answer:

yes


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Question22Other thing equal, which two of the following to raise the equilibnational income

Rise in government spending.

Rise in exports.

Rise in savings.

Rise in imports.


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Answer

Rise in government spending.

Rise in exports.


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Question23Other thing equal, which two of the following are likely to lower value of national income?

Rise in investment expenditure.

Fall in imports.

Rise in tax revenue.

Fall in exports.


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Answer

Rise in tax revenue.

Fall in exports.


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Question24To move from GDP and GNP we must add to GDP the

Depreciation of plant and equipment.

Subsidies minus taxes.

Taxes minus subsidies.

Net property income from abroad.

A


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Answer

Net property income from abroad.


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Question25Where we have an excess of injections over withdrawals at the level of national income, we call this which one of the following

Paradox or thrift.

Deflationary gap.

Inflationary gap.

Cost push inflation.

A


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Answer

Inflationary gap.


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Question26Which two of the following are excluded when measuring natio

Value added in the output method.

Consumer spending in the expenditure method.

Value of intermediate inputs in the output methods.Value of inputs in the output methods.

Answers


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Answers

Value of intermediate inputs in the output methods. Value of intermediate inputs in the output methods.


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Question27An increase in inflation and GDP is likely to reflect?

Cost push inflation

Demand pull inflation

Rising input prices

Unemployment

Answer


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Answer



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Question28A rise in inflation in and a fall in GDP are likely to reflect?

Cost push inflation



Frictional unemployment

Answer


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Answer

Cost push inflation.


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Question29All the following statements are correct except:

Per capita real GDP is often used as a measure of a nations sliving.

A changing distribution of income does not affect per capita

In a comparison per capita real GDP over time, changing po

growth does not affect the measure. Growth per capita real GDP is often used as a measure of a

changing standard of living.

Answer


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Answer

In a comparison per capita real GDP over time, changing pogrowth does not affect the measure.


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Question30

The following are all example of demand pull inflation except :

Lower taxes

Higher unemployment benefits

An increase in the interest rate

An increase in net exports

Answer


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Answer

An increase in the interest rate


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Question31

Cost push inflation can be caused by:

Higher labour costs.

Lower taxes

An increase in private investment

Higher private consumption

Answer


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Answer

Higher labour costs.


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Question32

All the following definition of economic activity are correct exce

Value added is net output, after deducting goods and servicduring the production processes.

National income at market prices account for the distortion osubsidies.

GNP is GDP adjusted for net factor income from abroad.

GDP per capita is the GDP for the economy divided by the pthe economy.

Answer


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Answer

National income at market prices account for the distortion osubsidies.


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Question33

Real GDP is a measure of a countrys:

Wealth

Money

Economic transactions

Physical output

Answer


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Physical output


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Question34

Which of the following is not a leakage from the circular flow of iexpenditure:

Imports

Government purchases

Taxes net of government transfer

Savings

Answer


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Government purchases


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Question35

GDP measures:

A countrys income

A countrys wealth

Consumer spending

Net trade income

Answer


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A countrys income


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Question36

Gross national product equal:

Net national product adjusted for inflation

Gross domestic product adjusted for inflation

Gross domestic product plus net property income from abroa

Net national product plus net property income from abroad

Answer


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Gross domestic product plus net property income from abroa


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Question37

Net national product equals:

GNP adjusted for inflation

GDP adjusted for inflation

GDP plus net property income from abroad

GNP minus depreciation

Answer


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GNP minus depreciation


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Question38

Real national income measures :

Nominal national income adjusted for population change

Nominal national income adjusted for unemployment

Nominal national income adjusted for inflation

Nominal national income adjusted for exchange rate

Answer


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Nominal national income adjusted for inflation


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Question39

To adjust GDP from market price to factor cost :

Add indirect taxes

Subtract subsidies

Deduct indirect taxes and deduct subsidies

Deduct indirect taxes and add subsidies

Answer


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Deduct indirect taxes and add subsidies


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Question40

To adjust from NNP to GNP:

Add depreciation

Deduct indirect taxes

Add subsidies

Add inflation

Answer


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Add depreciation


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Thank you

Mcq on National Income Ppts

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