Which one of the following is not a method for computing GNP? (1) Income Approach (2) Expenditure Approach (3) Savings Approach (4) Value Added Approach

Which one of the following is not a method for computing GNP? (1) Income Approach (2) Expenditure Approach (3) Savings Approach (4) Value Added Approach
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(1) Income Approach Explanation: Gross National Product (GNP) can be defined as an economic statistic which includes Gross Domestic Product, plus any income earned by the residents from investments made overseas. Net factor income from abroad = income earned in foreign countries by the residents of a country - income earned by nonresidents in that country.
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Which one of the following is not a method for computing GNP ? (1) Income Approach (2) Expenditure Approach (3) Savings Approach (4) Value Added Approach

Description : Which one of the following is not a method for computing GNP ? (1) Income Approach (2) Expenditure Approach (3) Savings Approach (4) Value Added Approach

Last Answer : Income Approach

The method of calculating the national income by the product method is otherwise known as : (1) Income method (2) Value added method (3) Expenditure method (4) Net output method

Description : The method of calculating the national income by the product method is otherwise known as : (1) Income method (2) Value added method (3) Expenditure method (4) Net output method

Last Answer : (4) Net output method Explanation: Primarily there are three methods of measuring national income. Which method is to be employed depends on the availability of data and purpose. The methods ... account. In this method, National Output = National Expenditure (Aggregate Demand) = National Income.

Which one of the following is not a method of measurement of National Income? (1) Value Added Method (2) Income Method (3) Investment Method (4) Expenditure Method

Description : Which one of the following is not a method of measurement of National Income? (1) Value Added Method (2) Income Method (3) Investment Method (4) Expenditure Method

Last Answer : (3) Investment Method Explanation: Primarily there are three methods of measuring national income. The methods are product method, income method and expenditure method. Product method is given by Dr. Alfred ... properties where evidence of rates is slight, such as hotels, cinema, car park and etc.

Which one of the following is not a method of measurement of National Income ? (1) Value Added Method (2) Income Method (3) Investment Method (4) Expenditure Method

Description : Which one of the following is not a method of measurement of National Income ? (1) Value Added Method (2) Income Method (3) Investment Method (4) Expenditure Method

Last Answer : Investment Method 

The method of calculating the national income by the product method is otherwise known as : (1) Income method (2) Value added method (3) Expenditure method (4) Net output method

Description : The method of calculating the national income by the product method is otherwise known as : (1) Income method (2) Value added method (3) Expenditure method (4) Net output method

Last Answer : Net output method

Which of the following is not required while computing Gross National Product (GNP)? (1) Net foreign investment (2) Private investment (3) Per capita income of citizens (4) Purchase of goods by government

Description : Which of the following is not required while computing Gross National Product (GNP)? (1) Net foreign investment (2) Private investment (3) Per capita income of citizens (4) Purchase of goods by government

Last Answer : (3) Per capita income of citizens Explanation: Gross National Product (GNP) is the market value of all products and services produced in one year by labour and property supplied by the ... measures the value of goods and services that the country's citizens produced regardless of their location.

Which of the following is not required while computing Gross National Product (GNP) ? (1) Net foreign investment (2) Private investment (3) Per capita income of citizens (4) Purchase of goods by government

Description : Which of the following is not required while computing Gross National Product (GNP) ? (1) Net foreign investment (2) Private investment (3) Per capita income of citizens (4) Purchase of goods by government

Last Answer : Per capita income of citizens 

The difference between the GNP and the NNP is equal to the - (1) consumer expenditure on durable goods (2) direct tax revenue (3) indirect tax revenue (4) capital depreciation

Description : The difference between the GNP and the NNP is equal to the - (1) consumer expenditure on durable goods (2) direct tax revenue (3) indirect tax revenue (4) capital depreciation

Last Answer : (4) capital depreciation Explanation: Depreciation refers to two very different but related concepts: the decrease in value of assets (fair value depreciation), and the allocation of the cost of ... equal to capital depreciation. It is the wearing out, breaking down, or technological obsolescence.

The difference between the GNP and the NNP is equal to the (1) consumer expenditure on durable goods (2) direct tax revenue (3) indirect tax revenue (4) capital depreciation

Description : The difference between the GNP and the NNP is equal to the (1) consumer expenditure on durable goods (2) direct tax revenue (3) indirect tax revenue (4) capital depreciation

Last Answer : capital depreciation

Which one of following represents the Savings of the Private Corporate Sector? (1) Dividends paid to shareholders (2) Total profits of a company (3) Undistributed profits (4) Excess of income over expenditure

Description : Which one of following represents the Savings of the Private Corporate Sector? (1) Dividends paid to shareholders (2) Total profits of a company (3) Undistributed profits (4) Excess of income over expenditure

Last Answer : (3) Undistributed profits Explanation: For private corporate sector, retained profits adjusted for non operating surplus/deficit is considered as its Net Saving. Retained profits are those ... commitments to depreciation provision for various fixed assets, debts, government and to shareholders.

An indifference curve measures the same level of - (1) Output from two factors (2) Satisfaction from two commodities (3) Satisfaction from Income and Capital (4) Satisfaction from expenditure and savings

Description : An indifference curve measures the same level of - (1) Output from two factors (2) Satisfaction from two commodities (3) Satisfaction from Income and Capital (4) Satisfaction from expenditure and savings

Last Answer : (2) Satisfaction from two commodities Explanation: An indifference curve is a locus of combinations of goods which derive the same level of satisfaction. so that the consumer is indifferent ... of various points showing different combinations of two goods providing equal utility to the consumer

Investment and savings are kept equal through a change in the level of - (1) Consumption (2) Investment (3) Government expenditure (4) Income

Description : Investment and savings are kept equal through a change in the level of - (1) Consumption (2) Investment (3) Government expenditure (4) Income

Last Answer : (1) Consumption Explanation: Desired savings are kept equal to desired investment by responses to interest rate changes. Savings identity or the savings investment identity is a concept in ... brings savings and investment into balance without any intention by business to increase investment.

An indifference curve measures the same level of (1) Output from two factors (2) Satisfaction from two commodities (3) Satisfaction from Income and Capital (4) Satisfaction from expenditure and savings

Description : An indifference curve measures the same level of (1) Output from two factors (2) Satisfaction from two commodities (3) Satisfaction from Income and Capital (4) Satisfaction from expenditure and savings

Last Answer : Satisfaction from two commodities

Which one of the following represents the Savings of the Private Corporate Sector? (1) Dividends paid to shareholders (2) Total profits of a company (3) Undistributed profits (4) Excess of income over expenditure

Description : Which one of the following represents the Savings of the Private Corporate Sector? (1) Dividends paid to shareholders (2) Total profits of a company (3) Undistributed profits (4) Excess of income over expenditure

Last Answer : Undistributed profits

Investment and savings are kept equal through a change in the level of (1) Consumption (2) Investment (3) Government expenditure (4) Income

Description : Investment and savings are kept equal through a change in the level of (1) Consumption (2) Investment (3) Government expenditure (4) Income

Last Answer : Consumption

In agricultural sector net value added is estimated by A. Income method B. Expenditure method C. Production method D. All the three

Description : In agricultural sector net value added is estimated by A. Income method B. Expenditure method C. Production method D. All the three

Last Answer : C. Production method

In agricultural sector net value added is estimated by (a) Income method ; (b) Expenditure method ; (c) Production method ; (d) All the three

Description : In agricultural sector net value added is estimated by (a) Income method ; (b) Expenditure method ; (c) Production method ; (d) All the three

Last Answer : ; (c) Production method ;

The term 'Green GNP' emphasises - (1) rapid growth of GNP (2) increase in per capita income (3) economic development (4) sustainable development

Description : The term 'Green GNP' emphasises - (1) rapid growth of GNP (2) increase in per capita income (3) economic development (4) sustainable development

Last Answer : (4) sustainable development Explanation: The gross national product (GNP) measures the welfare of a nation's economy through the aggregate of products and services produced in that nation, Although ... national product that would indicate if activities benefit or harm the economy and well-being.

Net National Product of a country is - (1) GDP minus depreciation allowances (2) GDP plus net income from abroad (3) GNP minus net income from abroad (4) GNP minus depreciation allowances

Description : Net National Product of a country is - (1) GDP minus depreciation allowances (2) GDP plus net income from abroad (3) GNP minus net income from abroad (4) GNP minus depreciation allowances

Last Answer : (4) GNP minus depreciation allowances Explanation: Net national product (NNP) is the total market value of all final goods and services produced by residents in a country or other polity during a given ... and NDP is equal to gross domestic product (GDP) minus depreciation: NDP = GDP - depreciation.

National Income is also called as : (1) GNP at Factor Cost (2) GNP at Market Price (3) (3) NNP at Factor Cost (4) (4) NNP at Market Price

Description : National Income is also called as : (1) GNP at Factor Cost (2) GNP at Market Price (3) (3) NNP at Factor Cost (4) (4) NNP at Market Price

Last Answer : (1) GNP at Factor Cost Explanation: National Income is the total value of all goods and services produced in the economy during a particular period of time.

National Income is also called as : (1) GNP at Factor Cost (2) GNP at Market Price (3) NNP at Factor Cost (4) NNP at Market Price

Description :  National Income is also called as : (1) GNP at Factor Cost (2) GNP at Market Price (3) NNP at Factor Cost (4) NNP at Market Price

Last Answer : GNP at Factor Cost

Net National Product of a country is (1) GDP minus depreciation allowances (2) GDP plus net income from abroad (3) GNP minus net income from abroad (4) GNP minus depreciation allowances

Description : Net National Product of a country is (1) GDP minus depreciation allowances (2) GDP plus net income from abroad (3) GNP minus net income from abroad (4) GNP minus depreciation allowances

Last Answer :  GNP minus depreciation allowances

The term ‘Green GNP’ emphasises (1) rapid growth of GNP (2) increase in per capita income (3) economic development (4) sustainable development

Description : The term ‘Green GNP’ emphasises (1) rapid growth of GNP (2) increase in per capita income (3) economic development (4) sustainable development

Last Answer : sustainable development

Which one of the following is not a method of estimating National Income? (1) Expenditure method (2) Product method (3) Matrix method (4) Income method

Description : Which one of the following is not a method of estimating National Income? (1) Expenditure method (2) Product method (3) Matrix method (4) Income method

Last Answer : (3) Matrix method Explanation: The matrix method is a structural analysis method used as a fundamental principle in many applications in civil engineering. The method is carried out, using ... of measuring national income. The methods are product method, income method and expenditure method.

In India agricultural income is calculated by (a) Income method (b) Output method © Expenditure method (d) None of them.

Description : In India agricultural income is calculated by (a) Income method (b) Output method © Expenditure method (d) None of them.

Last Answer : (b) Output method

Which one of the following is not a method of estimating National Income ? (1) Expenditure method (2) Product method (3) Matrix method (4) Income method

Description : Which one of the following is not a method of estimating National Income ? (1) Expenditure method (2) Product method (3) Matrix method (4) Income method

Last Answer : Matrix method 

Which of the following is not an economic problem? (1) Deciding between paid work leisure (2) Deciding between expenditure on one good and the other (3) Deciding between alternative methods of personal savings (4) Deciding between different ways of spending leisure time

Description : Which of the following is not an economic problem? (1) Deciding between paid work leisure (2) Deciding between expenditure on one good and the other (3) Deciding between alternative methods of personal savings (4) Deciding between different ways of spending leisure time

Last Answer : (3) Deciding between alternative methods of personal savings Explanation: The Theory of Economic Problem states that scarcity exists in the sense that only finite and insufficient resources are ... to allocate scarce resources to the provision of various goods and services within the economy.

Which of the following is not an economic problem ? (1) Deciding between paid work and leisure (2) Deciding between expenditure on one good and the other (3) Deciding between alternative methods of personal savings (4) Deciding between different ways of spending leisure time

Description : Which of the following is not an economic problem ? (1) Deciding between paid work and leisure (2) Deciding between expenditure on one good and the other (3) Deciding between alternative methods of personal savings (4) Deciding between different ways of spending leisure time

Last Answer : Deciding between different ways of spending leisure time

While Computing the actual cost of any asset falling within a block, direct cost attributable to bring the asset to its present location and working condition for its intended use(i.e. expenses incurred for acquiring the asset e.g. freight, insurance, etc.) a) Be added to the purchase price b) Be subtracted from the purchase price c) Be subtracted from WDV d) Be claimed as revenue expenditure

Description : While Computing the actual cost of any asset falling within a block, direct cost attributable to bring the asset to its present location and working condition for its intended use(i.e. expenses incurred ... from the purchase price c) Be subtracted from WDV d) Be claimed as revenue expenditure

Last Answer : b) Be subtracted from the purchase price

While computing the actual cost of any asset falling within a block, portion of cost of asset which has been met directly by the central government or a state government or any authority under any law or any other person, in the form of a subsidy or grant : a) Added to purchase price b) Subtracted from purchase price c) Added to WDV d) Claimed as Revenue Expenditure

Description : While computing the actual cost of any asset falling within a block, portion of cost of asset which has been met directly by the central government or a state government or any authority under any law ... price b) Subtracted from purchase price c) Added to WDV d) Claimed as Revenue Expenditure

Last Answer : b) Subtracted from purchase price

Which among the following method is used to calculate poverty in India? (a) Investment Method. (b) Capital Method. © Savings Method. (d) Income Method.

Description : Which among the following method is used to calculate poverty in India? (a) Investment Method. (b) Capital Method. © Savings Method. (d) Income Method.

Last Answer : (d) Income Method.

The average monthly expenditure of a family was Rs. 2200 during the first 3 months; Rs. 2250 during the next 4 months and Rs. 3120 during the last 5 months of a year. If the total savings during the year were Rs. 1260, then the average monthly income was: a) Rs. 2605 b) Rs. 2680 c) Rs. 2705 d) Rs. 2745 e) Rs. 2595

Description : The average monthly expenditure of a family was Rs. 2200 during the first 3 months; Rs. 2250 during the next 4 months and Rs. 3120 during the last 5 months of a year. If the total savings during the year were Rs. 1260 ... income was: a) Rs. 2605 b) Rs. 2680 c) Rs. 2705 d) Rs. 2745 e) Rs. 2595

Last Answer : Total expenditure for first 3 months = 2200 3 = Rs 6600 Total expenditure for next 4 months = 2250 4 = Rs9000 Total expenditure for last 5 months = 3120 5 = Rs 15600 Total expenditure = 6600 + ... + savings = 31200 + 1260 = Rs 324060 Average monthly income = 32460/12 = Rs 2705 Answer: c)

The ratio of income of X and Y is 4:3. The sum of their expenditure is Rs.12,000 and the amount of savings is X is equal to the amount of expenditure of Y.What is the salary of Y? A) 9000 B) 7000 C) 12000 D) 15000 E) None of these

Description : The ratio of income of X and Y is 4:3. The sum of their expenditure is Rs.12,000 and the amount of savings is X is equal to the amount of expenditure of Y.What is the salary of Y? A) 9000 B) 7000 C) 12000 D) 15000 E) None of these

Last Answer : Answer: A X’s saving = Expenditure of Y = S 4x-S + S = 12000 X = 3000 3x =3*3000 = 9000

The balance of payments equals (a) The difference between household spending over earnings (b) The difference between government expenditure over its income © A measure of the value of economic transactions between residents of a country and rest of the world (d) The difference between inflation and unemployment.

Description : The balance of payments equals (a) The difference between household spending over earnings (b) The difference between government expenditure over its income © A measure of the value of economic ... a country and rest of the world (d) The difference between inflation and unemployment.

Last Answer : © A measure of the value of economic transactions between residents of a country and rest of the world

Which terns is used in economics for the market value of all goods and services in one year by labour and properly supplied by the residents of the country? (1) GDP (2) GPN (3) OMP (4) GNP

Description : Which terns is used in economics for the market value of all goods and services in one year by labour and properly supplied by the residents of the country? (1) GDP (2) GPN (3) OMP (4) GNP

Last Answer : (4) GNP Explanation: Gross National Product (GNP) is defined as "the market value of all goods and services produced in one year by labour and property supplied by the residents of a country. It is ... ), defined as "the value of all final goods and services produced in a country in I year."

Which term is used in economics for the market value of all goods and services in one year by labour and properly supplied by the residents of the country? (1) GDP (2) GPN (3) OMP (4) GNP

Description : Which term is used in economics for the market value of all goods and services in one year by labour and properly supplied by the residents of the country? (1) GDP (2) GPN (3) OMP (4) GNP

Last Answer : GNP

A demand curve will not shift: (1) When only income changes (2) When only prices of substitute products change (3) When there is a change in advertisement expenditure (4) When only price of the commodity changes

Description : A demand curve will not shift: (1) When only income changes (2) When only prices of substitute products change (3) When there is a change in advertisement expenditure (4) When only price of the commodity changes

Last Answer : (4) When only price of the commodity changes Explanation: In economics, the demand curve is the graph depicting the relationship between the price of a certain commodity and the amount of it that ... only when there is a change in other determinants of demand, other than price of the commodity.

National income accounting is the study of the income and expenditure of the entire - (1) family (2) state (3) economy (4) organisation

Description : National income accounting is the study of the income and expenditure of the entire - (1) family (2) state (3) economy (4) organisation

Last Answer : (3) economy Explanation: National Income Accounting is a set of principles and methods used to measure the income and production of a country. There are basically two ways of measuring ... the total of incomes derived from economic activity after allowance has been made for capital consumption.

A siuation where we have people whose level of income is not sufficient to meet the minimum consumption expenditure is considered as - (1) Absolute Poverty (2) Relative Poverty (3) Urban Poverty (4) Rural Poverty

Description : A siuation where we have people whose level of income is not sufficient to meet the minimum consumption expenditure is considered as - (1) Absolute Poverty (2) Relative Poverty (3) Urban Poverty (4) Rural Poverty

Last Answer : (1) Absolute Poverty Explanation: Absolute poverty is defined as a situation in which the individual's basic needs are not covered, in other words, there is a lack of basic goods and services ( ... shelter, education and information. It depends not only on income but also on access to services."

Which of the following results by dividing national income by size of population? (1) Per capita income (2) Subsistence level (3) Subsistence expenditure- (4) Per capita production

Description : Which of the following results by dividing national income by size of population? (1) Per capita income (2) Subsistence level (3) Subsistence expenditure- (4) Per capita production

Last Answer : (1) Per capita income Explanation: Per capita income or average income or income per person is a measure of mean income within an economic aggregate, such as a country or city. It is calculated by ... in the aggregate (such as GDP or Gross National Income) and dividing it by the total population.

Whch of the following curve describes the variation of household expenditure on a particular good with respect to household income? (1) Demand curve (2) Engel curve (3) Great Cats by curve (4) Cost curve

Description : Whch of the following curve describes the variation of household expenditure on a particular good with respect to household income? (1) Demand curve (2) Engel curve (3) Great Cats by curve (4) Cost curve

Last Answer : (2) Engel curve Explanation: In microeconomics, an Engel curve describes how household expenditure on a particular good or service varies with household income. The curve is named after ... was the first to investigate this relationship between goods expenditure and income systematically in 1857.

Which of the following is not included in the National Income? (1) Imputed rent of owner-occupied houses (2) Government expenditure on making new bridges (3) Winning a lottery (4) Commission paid to an agent for sale of house

Description : Which of the following is not included in the National Income? (1) Imputed rent of owner-occupied houses (2) Government expenditure on making new bridges (3) Winning a lottery (4) Commission paid to an agent for sale of house

Last Answer : (3) Winning a lottery Explanation: National income is the total value a country's final output of all new goods and services produced in one year. Transfer payments are not a ... pensions, charity, scholarships etc. Privatesector transfers include charitable donations and prizes to lottery winners.

The functional relationship between income and consumption expenditure is explained by - (1) Consumer' Surplus (2) Law of Demand (3) Law of Supply (4) Keynes's psychological law of consumption

Description : The functional relationship between income and consumption expenditure is explained by - (1) Consumer' Surplus (2) Law of Demand (3) Law of Supply (4) Keynes's psychological law of consumption

Last Answer : (4) Keynes's psychological law of consumption Explanation: Keynes defined Psychological Law of Consumption in terms of, "The fundamental psychological law, upon which we are entitled to depend with great ... consumption as their income increases but not by as much as the increase in the income."

While determining income the expenditure on which of the following items is not considered as investment? (1) Construction of factory (2) Computer (3) Increase in the stock of unsold articles (4) Stock and share in joint stock company

Description : While determining income the expenditure on which of the following items is not considered as investment? (1) Construction of factory (2) Computer (3) Increase in the stock of unsold articles (4) Stock and share in joint stock company

Last Answer : (3) Increase in the stock of unsold articles Explanation: The gross national product is the sum total of all final goods and services produced by the people of one country in one year. The GNP is a ... net exports (Xn). Increase in the stock of unsold articles do not come under any of these heads.

What is "book-building"? (1) Preparing the income and expenditure ledgers of a company (book-keeping) (2) Manipulating the profit and loss statements of a company (3) A process of inviting subscriptions to a public offer of securities, essentially through a tendering process (4) Publishers' activity

Description : What is "book-building"? (1) Preparing the income and expenditure ledgers of a company (book-keeping) (2) Manipulating the profit and loss statements of a company (3) A process of inviting subscriptions to a public offer of securities, essentially through a tendering process (4) Publishers' activity

Last Answer : (3) A process of inviting subscriptions to a public offer of securities, essentially through a tendering process Explanation: Book building refers to the process of generating, capturing, and recording investor ... a base price and a band within which the investor is allowed to bid for shares.

A tax is characterized by horizontal equity if its liability is - (1) proportional to the income of tax payers (2) similar for tax payers in similar circumstances (3) proportional to the expenditure of tax payers (4) the same for every tax payer

Description : A tax is characterized by horizontal equity if its liability is - (1) proportional to the income of tax payers (2) similar for tax payers in similar circumstances (3) proportional to the expenditure of tax payers (4) the same for every tax payer

Last Answer : (1) proportional to the income of tax payers Explanation: The principle of equity includes both horizontal and vertical. Equity is determined by first assessing an individual's ability-to-pay. The idea of ... equity suggests it is fair for people of equal ability to pay the same amount in taxes.

Micro-economics is also called : (1) Income theory (2) Investment theory (3) Price theory (4) Expenditure theory

Description : Micro-economics is also called : (1) Income theory (2) Investment theory (3) Price theory (4) Expenditure theory

Last Answer : (3) Price theory Explanation: Microeconomics is the branch of economics concerned with isolated parts of the economy, for example, individual people, firms or industries. It involves such topics as the theory of prices and of the firm.

Multiplier process in economic theory is conventionally taken to mean: (1) the manner in which prices increase (2) the manner in which banks create credit (3) income of an economy grows on account of an initial investment (4) the manner in which government expenditure increases

Description : Multiplier process in economic theory is conventionally taken to mean: (1) the manner in which prices increase (2) the manner in which banks create credit (3) income of an economy grows on account of an initial investment (4) the manner in which government expenditure increases

Last Answer : (3) income of an economy grows on account of an initial investment Explanation: In economics, a multiplier is a factor of proportionality that measures how much an endogenous variable changes in response to a change in ... of the U.S. money supply, and MO as a measure of the U.S. monetary base.

Laffer curve is related to (a) Tax rate and tax revenue. (b) Aggregate tax and aggregate non-tax revenue. (c) Total tax burden and total payment burden. (d) Total income and total expenditure.

Description : Laffer curve is related to (a) Tax rate and tax revenue. (b) Aggregate tax and aggregate non-tax revenue. (c) Total tax burden and total payment burden. (d) Total income and total expenditure.

Last Answer : (c) Total tax burden and total payment burden.

A situation where we have people whose level of income is not sufficient to meet the minimum consumption expenditure is considered as (1) Absolute Poverty (2) Relative Poverty (3) Urban Poverty (4) Rural Poverty

Description : A situation where we have people whose level of income is not sufficient to meet the minimum consumption expenditure is considered as (1) Absolute Poverty (2) Relative Poverty (3) Urban Poverty (4) Rural Poverty

Last Answer : Absolute Poverty