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

National income accounting is the study of the income and expenditure of the entire - (1) family (2) state (3) economy (4) organisation
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(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 national economic activity: as the money value of the total production of goods and services during a given period (usually a year) or as the total of incomes derived from economic activity after allowance has been made for capital consumption.
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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 : economy

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.

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 : income of an economy grows on account of an initial investment 

Gross Profit means - (1) Total investment over total saving (2) Changes in methods of production (3) Changes in the form of business organisation (4) Total receipts over total expenditure

Description : Gross Profit means - (1) Total investment over total saving (2) Changes in methods of production (3) Changes in the form of business organisation (4) Total receipts over total expenditure

Last Answer : (4) Total receipts over total expenditure Explanation: In accounting, gross profit or sales profit is the difference between revenue and the cost of making a product or providing a service, before deducting ... . Gross profit = Net sales (total receipts) - Cost of goods sold (total expenditure).

Gross Profit means (1) Total investment over total saving (2) Changes in methods of production (3) Changes in the form of business organisation (4) Total receipts over total expenditure

Description : Gross Profit means (1) Total investment over total saving (2) Changes in methods of production (3) Changes in the form of business organisation (4) Total receipts over total expenditure

Last Answer : Total receipts over total expenditure

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.

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.

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 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 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 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 

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 : Winning a lottery

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 : Per capita income

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

Who prepared the first estimate of National Income for the country? (1) Central Statistical Organisation (2) National Income Committee (3) Dadabhai Naoroji (4) National Sample Survey Organisation

Description : Who prepared the first estimate of National Income for the country? (1) Central Statistical Organisation (2) National Income Committee (3) Dadabhai Naoroji (4) National Sample Survey Organisation

Last Answer : (3) Dadabhai Naoroji Explanation: Dadabhai Naoroji prepared the first estimates of National income in 1876. He estimated the national income by first estimating the value of agricultural production ... nonagricultural production. However, such method can only been called as a non-scientific method.

National Income Estimates in India are prepared by: (1) National Development Council (2) National Productivity Council (3) National Income Committee (4) Central Statistical Organisation

Description : National Income Estimates in India are prepared by: (1) National Development Council (2) National Productivity Council (3) National Income Committee (4) Central Statistical Organisation

Last Answer : Central Statistical Organisation

Who prepared the first estimate of National Income for the country ? (1) Central Statistical Organisation (2) National Income Committee (3) Dadabhai Naoroji (4) National Sample Survey Organisation

Description : Who prepared the first estimate of National Income for the country ? (1) Central Statistical Organisation (2) National Income Committee (3) Dadabhai Naoroji (4) National Sample Survey Organisation 

Last Answer : Dadabhai Naoroji

Net National Product in National Income Accounting refers to - (1) Gross Domestic Product—Depreciation (2) Gross Domestic Product + Subsidies (3) Gross National Product—Depreciation (4) Gross National Product + Subsidies

Description : Net National Product in National Income Accounting refers to - (1) Gross Domestic Product—Depreciation (2) Gross Domestic Product + Subsidies (3) Gross National Product—Depreciation (4) Gross National Product + Subsidies

Last Answer : (3) Gross National Product-Depreciation Explanation: Net national product at market price is the market value of the output of final goods and services produced at current price in one year of ... the depreciation charges from the gross national product, we get net national product at market price.

Net National Product in National Income Accounting refers to (1) Gross Domestic Product— Depreciation (2) Gross Domestic Product + Subsidies (3) Gross National Product— Depreciation (4) Gross National Product + Subsidies

Description : Net National Product in National Income Accounting refers to (1) Gross Domestic Product— Depreciation (2) Gross Domestic Product + Subsidies (3) Gross National Product— Depreciation (4) Gross National Product + Subsidies

Last Answer : Gross National Product— Depreciation

X a consumer spends his entire income on two commodities A and (B) if price of A increases by 10% and his expenditure on item B remains same, then the price elasticity of item A is (a) 1 ; (b) < 1 ; (c) > 1 ; (d) ≥

Description : X a consumer spends his entire income on two commodities A and (B) if price of A increases by 10% and his expenditure on item B remains same, then the price elasticity of item A is (a) 1 ; (b) < 1 ; (c) > 1 ; (d) ≥

Last Answer : (a) 1 ;

)A very high rise in National Income at current market prices and a low rise at constant prices reveals - (1) the high rate of growth in the economy at the current period (2) the increased production in the current period (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy

Description : )A very high rise in National Income at current market prices and a low rise at constant prices reveals - (1) the high rate of growth in the economy at the current period (2) the increased ... period (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy

Last Answer : (3) the improper growth of the economy Explanation: When national output is multiplied by present ruling price, we obtain national income at current prices. On the other hand if the national output is ... not indicate increase in product or output, but is rather due to the rise in price level.

The supply of labour in the economy depends on - (1) Population (2) National income (3) Per capita income (4) Natural resources

Description : The supply of labour in the economy depends on - (1) Population (2) National income (3) Per capita income (4) Natural resources

Last Answer : (1) Population Explanation: The supply curve for labor depends on variables such as population, wage rates, etc. in developing countries, the vast population base explains the relatively lower wage ... accessibility to labour supply. This is just the opposite in the case of developed countries.

A very high rise in National Income at current market prices and a low rise at constant prices reveals (1) the high rate of growth in the economy at the current period (2) the increased production in the current period (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy

Description : A very high rise in National Income at current market prices and a low rise at constant prices reveals (1) the high rate of growth in the economy at the current period (2) the increased production ... (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy 

Last Answer :  the high rate of inflation prevailing in the economy

The supply of labour in the economy depends on (1) Population (2) National income (3) Per capita income (4) Natural resources

Description : The supply of labour in the economy depends on (1) Population (2) National income (3) Per capita income (4) Natural resources

Last Answer : Population

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.

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 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

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 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 : (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 ... foreign countries by the residents of a country - income earned by nonresidents in that country.

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.

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.

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.

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.

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

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

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

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 ... subscriptions to a public offer of securities, essentially through a tendering process (4) Publishers' activity

Last Answer : A process of inviting subscriptions to a public offer of securities, essentially through a tendering process

A tax is characterised 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 characterised 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 : proportional to the income of tax payers 

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 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 Gatsby curve (4) Cost curve

Description : Which 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 Gatsby curve (4) Cost curve

Last Answer : Engel curve

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

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

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 :  Keynes’s psychological law of consumption

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 : Increase in the stock of unsold articles

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