National Income Test 5 (Intermediate and Final Consumption): AP Macroeconomics

One business sells an intermediate product to the other business for:
Further processing
Sale
Use
Re-use
Storing for sale at a future date
Own Account Production of fixed assets by a firm becomes a part of: I. Capital Formation II. Intermediate Consumption III. Final Consumption
I only
II only
III only
I and II
II and III
In an economy, Net purchase of second-hand physical assets from abroad becomes a part of:
Domestic Fixed Capital formation
Final Consumption Expenditure
Consumption Expenditure
Intermediate Consumption
Income from abroad
Purchase of a vehicle by a household is a part of:
Investment
Production
Capital formation
Consumption
Intermediate production
When the government purchases a military truck it becomes a part of:
Intermediate Consumption
Final Consumption
Capital Consumption
Production
Capital Formation
Expenditure on the Advertisement and Public Relations by an enterprise forms a part of:
Final Consumption Expenditure
Intermediate Consumption
Personal Consumption Expenditure
Investment
Fixed Capital
Which of the following will be considered as an Intermediate Product?
Calculators made by a company and sold to another company for further improvement
Calculators made and sold by a company to consumers
Calculators made by a company and used by the manager’s wife
Calculators made and sold by a company but lying with shopkeeper
None of the above
When the Government directly purchases from abroad on current account, it becomes a part of:
Intermediate Consumption
Final Consumption
Capital Formation
Consumption of fixed Capital
Production
Unemployment Allowance is:
A loan
Capital Loss
Final Consumption
Transfer Payment
Intermediate Consumption
Expenditure by a firm on new parts of fixed assets become a part of:
Intermediate Consumption
Final Consumption
Fixed Capital
Capital Consumption
None of the above
Description:

One of the most important chapters of Macroeconomics AP, is National Income. Here is the fifth 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 Intermediate and Final Consumption. This test is a must for students of AP who confuse these two concepts with Capital Formation and Transfer Payments.

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