1st Year Principles of Economics Chapter 9 TestNational Income

Q1. Multiple choice questions (Attempt all · 10 × 1 = 10)

1. Which one of the following is not included in the methods of measuring national income:

   1. Method of total according to market prices

   2. Method of total of incomes

   3. Method of total of domestic necessities and desires

   4. Method of total expenditures

2. If depreciation is deducted from Gross National Product, we get:

   1. NNP

   2. PI

   3. DPI

   4. GDP

3. Period of measurement of national income is:

   1. 6 months

   2. 3 years

   3. 4 years

   4. One year

4. Which one of the following is not called Gross national product:

   1. Economic national product

   2. Joint national product

   3. Composite national product

   4. Social national product

5. Which one of the following is transfer payments:

   1. Wages

   2. Salaries

   3. Prices

   4. Unemployment allowance

6. When national product is divided by population it is called:

   1. Total income

   2. Per capita income

   3. Personal income

   4. Real income

7. Net foreign income is:

   1. Exports-imports

   2. Exports+imports

   3. Income received by exports

   4. Income received by imports

8. Disposable personal income means:

   1. Total of incomes

   2. After paying personal taxes, income of the people who provide factors of production

   3. Income of an industry after fulfilling all the needs

   4. Saved income of a person after the payment of the taxes

9. What remains after the deduction of direct tax from the personal income:

   1. NNP

   2. NNI

   3. DPI

   4. GNP

10. Which thing should be added in net national product to get gross national product:

    1. Direct taxes

    2. Indirect taxes

    3. Depreciation allowance

    4. Subsidies