Page 1 :
ECONOMICS TEST, , 1. Inventory is a concept whereas the change in, inventory is a concept., , A. Stock, flow B. Flow, stock C. Stock, stock D. Flow,, flow, , 2. If in an economy the value of Net factor Income from, abroad is * 200 crores and the value of Factor income to, abroad is % 40 crores. Identify the value of Factor Income, from abroad., , A.% 200 crores B. %160 crores C. 240 crores D. %180, crores., , Read the following passage and answer questions 3-5 on the, basis of the same., , Circular flow of income is a concept that bring out how, income flows across different sectors of the economy. It, shows how household sell their factor services to the, producer and in return Receive payments in terms of factor, incomes., , In two sector economy, there is only one way in which the, households may dispose off their earnings-by spending their, entire income on the goods and services produced by the, domestic firms. The factors of production use their
Page 2 :
remunerations to buy the goods and services they assisted in, producing. The entire income of the economy, therefore,, comes back to the producers in the form of sales revenue., There is no leakage from the system and nor any injection in, the system., , 3. Two sector economy consists of, , A. Households , firms, , B. Households ,government, C. Firms ,foreign sector, , D. Firms government, , Q4 .(Households/Government/ Firms) are the owners of, factors of production in a two sector (Choose the correct, alternative), , A. Households B.Government C.Firms D.None of these, , Q5. From the following statements, state which of the, statement is not correct., , A.\|n a two sector economy, the household spend all their, incomes on goods and services produced by the domestic, firms, , B. The households do not save, in a two sector economy., , C. The households do not buy imported goods since there is, no external trade in two sector economy., , D. Government impose heavy taxes on goods and services in, a two sector economy.
Page 3 :
Q6. The aggregate production of final goods and services, taking place within the domestic economy during a year is, measured by, , A. Gross Domestic Product 8B. National Income, C. Gross National Product D. Domestic Income, Q7. Which of the following is true, , A. Income earned by an Indian working in Indian embassy in, Portugal is a part of both Domestic as well as National, income., , B. Profit earned by a company in India which is owned by a, Non resident will be a part of National income., , C. Indian student studying in USA is a Normal resident of, India, , D. Both A and C., , Q8. National income is also known as, , A. Net National Product at market price, B. Net National Product at factor cost, C. Gross National Product, , D.Gross Domestic Product, , Q9. Depreciation is unexpected wear and tear of fixed assets., A. True 8B. False, , Q10. An open economy includes
Page 4 :
A. Three sectors B.Foursectors C. Twosectors D. None of, these., , Q 11. If net factor income from abroad is positive, then, , A. National income will be greater than domestic factor, incomes., , B. National income will be less than domestic factor, incomes., , C. Net exports will be negative., , D. Domestic factor incomes will be greater than national, income., , Q 12. Which of the following is an example of transfer, payment?, , A. Old age pensions and family pensions, , B. Scholarships given to deserving diligent students., , C. Compensation given for loss of property due to floods, D. All the above, , Q 13. Calculate the aggregate value of depreciation when the, GDP at market price of a country in a particular year was, 2,200 Crores. Net Factor Income from Abroad was 200 Crores., The value of Indirect taxes — Subsidies was 300 Crores and, National Income was 1700 Crores., , A.200 crores B. 800 crores C.600 crores D.400 crores, , Q 14. If GDP at mp of any country is = 4000 crores. Value of, fixed assets with estimated life of 20 years is ¥ 5000 crores.
Page 5 :
Indirect taxes are % 500 crores while subsidies given by the, , government are %250 crores. Factor income received by the, rest of the world is = 1000 crores and factor income paid to, rest of the world is = 700 crores. Find NATIONAL INCOME., , A.% 3700 crores B.%3500 crores C.%3800 crores D. 3850, crores., , Q.15. If GDP at constant prices is ¥ 500 and the price index is, 150 then find Nominal GDP (taking 100 as base)., , A.%600 B.%650 C.%400 D.%750
