National Income Test 10- Basic Concepts, Computation and Accounting: AP Macroeconomics

The Expenditure Method of computing National Income is also known as: I Income Disposal Method II Factor Payment Method III Consumption and Investment Method
I only
II only
III only
I and II
I and III
While computing National Income using the Product or Value Added Method which of the following is included? I Commission earned on the Sale and Purchase of second hand goods II The value of second hand goods sold III Services rendered by a maid at her own house.
I only
II only
III only
II and III
I, II and III
The Income Method of computing National Income is also known as: I Distributed Share Method II Factor Payment Method III Value Added Method
I only
II only
III only
I and II
I and III
Which of the following items is included in the computation of National Income?
Expense on staying at a luxury hotel on a holiday
Purchase of Securities of a listed company
Income earned from smuggling of goods
Wages and Salaries paid to employees
Sale of old car
If the Depreciation Reserve Fund is not maintained, then: I The Fixed Assets would wear out without replacement II The existing stock of capital will not remain intact III The production capacity of the producer would start shrinking
I only
II only
III only
I and II
I, II and III
In an economy the total income derived from all economic activities in a given year is:
Greater than the sum of Gross National Product
Equal to the sum of Gross National Product
Lesser than the sum of Gross National Product
Equal to the National Income
Greater than the National Income
Imports into a country add to the income of:
Domestic manufacturers
Foreign producers
Which of the following statements is true?
In an open economy, the total value of consumption and domestic capital formation can exceed total production.
The amount of money a household has is called flow.
A student using stationery forms part of the production process.
A school teacher who teaches her own child is a part of production.
The political frontiers of the country are wider than its domestic territory.
Which economist stated National Income as the aggregate product of and the sole source of payment for all the agents of production?
Alfred Marshall
A.C. Pigou
David Ricardo
Simon Kuznets
When the Capital Consumption Allowances exceed Gross Private Domestic Investment, it can be assumed that:
The Money GNP is rising whereas the Real GNP is falling
The economy is growing
The figure of Net Investment is negative
The exports in the economy exceed the imports
None of the above

Here is a quick revision of some Concepts relating to National Income. While taking this test, go through all the options very carefully. Try out this 7-minute short Multiple Choice questions test on the Concepts relating to National Income, its related Concepts and its computation.



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