National Income – Multiple Choice Questions (MCQs)

1. 13. Transfer payments like gifts and scholarships are?

   • A. Included in National Income
   • B. Excluded from National Income
   • C. Included in GDP but not GNP
   • D. Included in GNP but not GDP

2. 14. The financial year for National Income accounting in India is?

   • A. January 1st to December 31st
   • B. April 1st to March 31st
   • C. July 1st to June 30th
   • D. October 1st to September 30th

3. 15. Who estimates the National Income in India?

   • A. Reserve Bank of India (RBI)
   • B. National Statistical Office (NSO)
   • C. Ministry of Finance
   • D. NITI Aayog

4. 16. What is 'real' National Income?

   • A. National Income calculated at current prices
   • B. National Income adjusted for inflation
   • C. National Income excluding taxes
   • D. National Income including subsidies

5. 17. Nominal' National Income refers to?

   • A. National Income adjusted for inflation
   • B. National Income at constant prices
   • C. National Income at current market prices
   • D. National Income excluding foreign income

6. 18. Depreciation is also known as?

   • A. Capital formation
   • B. Consumption of fixed capital
   • C. Investment expenditure
   • D. Value addition

7. 19. Net Factor Income from Abroad (NFIA) is the difference between?

   • A. Income from exports and income from imports
   • B. Income earned by residents abroad and income earned by foreigners in the domestic economy
   • C. Total income and total expenditure
   • D. GDP and NNP

8. 20. Which of the following is a leakage from the circular flow of income?

   • A. Investment
   • B. Government spending
   • C. Exports
   • D. Savings

9. 21. Which of the following is an injection into the circular flow of income?

   • A. Imports
   • B. Taxes
   • C. Savings
   • D. Government expenditure

10. 22. The basic objective of measuring National Income is to?

    • A. Know the economic welfare of the country
    • B. Determine the population growth rate
    • C. Estimate the government's revenue
    • D. Analyze the stock market performance

11. 23. Which of the following is a macroeconomic concept?

    • A. Individual demand
    • B. Firm's supply
    • C. National Income
    • D. Consumer behavior

12. 24. Intermediate goods are?

    • A. Included in National Income calculation
    • B. Excluded from National Income calculation to avoid double counting
    • C. Included at their final sale value
    • D. Treated the same as final goods