National Income Test 9- Basic Terms: AP Macroeconomics

The concept of Double Counting refers to:
The process of counting the product as Real Goods and Money Flows
The process of counting the product as well as the Payment
The process of counting the same product more than once
The process of counting the Net Value added at each stage of Production
The process of counting the product as goods as well as services
Collective Consumption means consumption by:
Citizens of the country
Self consumption
An Individual
Corporates
A Household
Changes in the capital stocks are: I. Flows II. Consumption III. Stocks
I only
II only
III only
I and II
I, II and III
Which of the following is a stock? I US$ 15000 in the Bank Account II Investment in the economy III Monthly Income
I only
II only
III only
I and II
II and III
Which of the following is true about Inventory Investment? I It is included under Investment Expenditure II It is the difference between the Closing stock of the year and the Opening stock of the year III It is considered while computing National Income under the Expenditure method.
I only
II only
III only
I and III
I, II and III
A Capital Loss:
Occurs due to floods, earthquakes and similar reasons
It becomes a part of the National Income
It is a kind of Consumption Expenditure
All of the above
None of the above
The term “Net Domestic Investment” implies:
Exports less Imports
Exports plus Imports
The sum of total production of Capital Equipment, Construction and change in Inventories
The total Domestic Investment minus Net Exports
The total Investment minus the amount of Investment goods utilized to produce goods during the year.
The term denoting the difference between Gross aggregates and Net aggregates is:
Net Indirect Taxes
Net Income from abroad
Consumption of fixed Capital
Intermediate Consumption
Final Consumption Expenditure
The Total National Investment is: I Change in stocks II Gross Domestic Capital Formation III Exports less Imports
I only
II only
III only
I and II
I, II and III
The term “Subsidies” implies:
Transfer from business firms to individuals
Transfer by business firms to Government
Payments by Government to business, with no goods or services in return
Payments by business to Government, with no goods or services in return
Transfer by Government or Transfer by business firms
Description:

Here is a short test on some tricky yet basic terms of National Income. Attempt these questions to see how well you fare.

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