Accounting and Finance Questions and Answers
A ‘Transfer Income’ is an–
(A) Income which is not produced by any production process
(B) Income taken away from one person and given over to another
(C) Unearned income
(D) Earned income
Correct Answer : A
Explanation :
Income which is not produced by any production process is called transfer income. It is generally money received by an individual or family from the state or other body, often the pension or unemployment benefit.
Other name of Net National Product at market price?
(A) National Income
(B) Gross Domestic Production
(C) Personal Income
(D) Per Capital Income
Correct Answer : A
Explanation :
NNPMP = GNPMP – depreciation
Compared to rich the poors saving is–
(A) A larger part of their income
(B) An equal part of their income
(C) A small part of their income
(D) All of their incomes
Correct Answer : C
Explanation :
A necessary level of consumption produces differences in income and saving. This implies that the poor household have lower saving rates because they cannot “afford to save” after buying the necessities.
GDP at factor cost equals–
(A) GDP – Indirect Tax + Subsidy
(B) GNP – depreciation
(C) NNP + depreciation
(D) GDP – subsidy + indirect tax.
Correct Answer : A
One of the main factors that led to rapid expansion of Indian exports is–
(A) Imposition of export duty
(B) Liberalization of the economy
(C) Recession in other countries
(D) Diversification of exports
Correct Answer : B
Explanation :
The Liberalization of economy is to the main factor that led to rapid expansion of Indian exports. Imposition, Recession and Diversification does not contribute to export
A rising per Capita Income will indicate a better welfare if it is accompanied by –
(A) Unchanged Income distribution overall.
(B) Changed Income distribution in favour of rich.
(C) Changed Income distribution in favour of poor.
(D) Changed Income distribution in favour of Industrial Labour.
Correct Answer : C
Explanation :
A rising per Capita Income will indicate a better welfare if it is accompanied by changed Income distribution in favour of Poor.
A ‘Transfer Income’ is as –
(A) Income which is not produced by as production process.
(B) Income taken away from one person given over to another.
(C) Unearned Income
(D) Earned Income
Correct Answer : A
Explanation :
Transfer paymentOne-way payment of money for which no money, good, or service is received in exchange. Governments use such payments as means of income redistribution by giving out money under social welfare programs such as social security, old age or disability pensions, student grants, unemployment compensation, etc. Subsidies paid to exporters, farmers, manufacturers, however, are not considered transfer payments. Transfer payments are excluded in computing gross national product.
The Effect of ‘Investment Multiplier’ is shows on–
(A) Employment
(B) Savings
(C) Income
(D) Consumption
Correct Answer : C
Explanation :
Investment multiplier means those elements by which investment is increased and due to increasing of investment. There is increase in income and production. So effect of ‘Investment Multiplier’, according to above options is shown on income
In which year the First Income Committee was established?
(A) 1948
(B) 1949
(C) 1950
(D) 1951
Correct Answer : B
Explanation :
Under the chairmanship of Prof. PC Mahalonobis first Income Committee was established in 1949.
Prof. Dr. Godgill and Prof. R.K.R.B. Rao were the member of this committee
Personal Income produced in a country is not included in–
(A) Production income from NDP
(B) Net Production Income from foreign.
(C) Transfer Income from government
(D) Current Payment on Foreign loans.
Correct Answer : D
Explanation :
The Current payment on foreign loans are not included in personal Income. In economics, personal income refers to an individual’s total earnings from wages, investment enterprises, and other ventures. It is the sum of all the incomes received by all the individuals or household during a given period.
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Vikram Singh
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