National Income – Multiple Choice Questions (MCQs)

1. 25. What is the importance of National Income data for the government?

   • A. To formulate economic policies
   • B. To regulate the stock market
   • C. To control individual spending
   • D. To manage law and order

2. 26. A high National Income generally indicates?

   • A. Lower standard of living
   • B. Higher unemployment
   • C. Greater economic activity
   • D. Increased income inequality

3. 27. Challenges in measuring National Income in India include?

   • A. High literacy rates
   • B. Well-organized data collection
   • C. Existence of a large informal sector
   • D. Uniform tax system

4. 28. National Income accounting is a?

   • A. Method of calculating government budget
   • B. System of bookkeeping to measure a country's economic activity
   • C. Tool for analyzing individual incomes
   • D. Way to predict stock market trends