National Income Test 2: AP Macroeconomics

Which of the following affects the Real National Income?
Increase in Population
Increase in Savings
Rise in Production
Increase in Land
Increase in Prices
The National Income estimations for an economy, bring out the inter-relationship between:
The Agriculture and Industry
Savings and Investments
The Balance of Payments and Exchange Reserves
Labour Supply and the Employment situation
The Circular Flows
Which of the following accounts for the difference between the Disposable Income and the Personal Income?
Total Corporate Profits
Personal Taxes
Government Transfer Payments
By adding Indirect Taxes to the National Income at Factor Cost and then subtracting Subsidies from the Sum, the amount equals:
National Income at Market Prices
National Income at Factor Prices
Gross National Product
Net Indirect Taxes
Net National Product
The common part between the Corporate Business Income and Personal Income is: I Dividends II Government Transfer Payments III Social Security Payments made by firms
I only
II only
III only
I and II
I, II and III
In order to convert the Current Prices into Constant Prices, the deflator used is a:
Value Index
Income Index
Price Index
Quality Index
Quantity Index
Transfer Income is:
The sum of Consumptions and Savings
Unearned Income
Gross National Product plus Indirect Taxes minus Subsidies
Income which is not generated by a production process
Income taken by one person and transferred to another
Transfers from Current Income can be termed as:
Operating Surplus
Operating Transfers
Current Transfers
Capital Transfers
National Transfers
Which year’s Expenditure on the goods produced will be included in the Net National Product of the Current Year? I Previous Year II Current Year III Coming Year
I only
II only
III only
I and II
I, II and III
The concept of GNP is used for: I Computing the amount of Consumption and Investment II Computing the total payments made to the owners of factors III Assessing the amount of Incomes available for spending
I only
II only
III only
I and II
I, II and III

One of the most important chapters of Macroeconomics AP, is National Income. Here is the second test on the Basics of National Income, concepts of National Income and National Income Measurement. Try out this 7-minute short Multiple Choice questions test on the basic concepts of National Income.

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