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Recently Added Questions

  • 1
    The value of exports to be added and the value of imports to be subtracted
    Correct
    Wrong
  • 2
    The value of exports to be subtracted and the value of imports to be added
    Correct
    Wrong
  • 3
    The value of both exports and imports to be added
    Correct
    Wrong
  • 4
    Thevalue of both exports and imports to be subtracted
    Correct
    Wrong
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Answer : 1
The value of exports to be added and the value of imports to be subtracted

Explanation :

National Income of a country can be defined as the total market value of all final goods and services produced in the economy in a year. In expenditure method, the National Income is measured by adding up the four flows, - namely C, I, G, X and M.

Thus, Y = C+1+G + (X-M) + (X- M) Where,

C = Total consumption expenditure

I = Total investment expenditure

G = Total government expenditure

X = Export,

M = Import

  • 1
    Rent
    Correct
    Wrong
  • 2
    Mixed Income
    Correct
    Wrong
  • 3
    Pension
    Correct
    Wrong
  • 4
    Undistributed Profits
    Correct
    Wrong
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Answer : 4
Undistributed Profits

Explanation :

Income method measures National Income from the side of payments made to the primary factor of production for their productive services in an accounting year.

The components of factor income are (i) Employee’s Compensation, (ii) Profit, (iii) Rent, (iv) Interest, (v) Mixed income and (vi) Royalty.

Profit, rent, interest and other mixed income are jointly known as operating surplus.

  • 1
    Indirect tax
    Correct
    Wrong
  • 2
    Capital consumption allowance
    Correct
    Wrong
  • 3
    Subsidy
    Correct
    Wrong
  • 4
    Interest
    Correct
    Wrong
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Answer : 1
Indirect tax

Explanation :

The difference between Gross National Product and Depreciation is called Net National Product (NNP). NNP at factor cost is the net output evaluated at factor prices. It includes income earned by factor of production through participation in the production process, such as wages and salaries, rents, profits etc.

It is also called National Income. NNPFC = NNPmp – Indirect taxes

+ Subsidies = National Income. But now NNPMP is National Income

  • 1
    Racial factors
    Correct
    Wrong
  • 2
    Lack of opportunities
    Correct
    Wrong
  • 3
    Inheritance from family environment
    Correct
    Wrong
  • 4
    Differences in ability
    Correct
    Wrong
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Answer : 2
Lack of opportunities

Explanation :

In India, on the one hand, Per Capita Income is low and on the other hand, there is large inequality in the distribution of wealth and income, according to Human Development Reports. Lack of opportunity means that its most valuable assets its people is not being fully used. It is appropriate reason of income gap.

Q:

Per Capita Income is equal to–

155 0
  • 1
    National Income/Total population of the country
    Correct
    Wrong
  • 2
    National Income + Population
    Correct
    Wrong
  • 3
    National Income - Population
    Correct
    Wrong
  • 4
    National Income x Population
    Correct
    Wrong
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Answer : 1
National Income/Total population of the country

Explanation :

The average income of the people of a country in a particular year is called Per Capita Income for that year. So, it is National Income divided by population.

Per Capita Income

= National Income/Total population of the country

Though Per Capita Income is more reliable than GNP for many particular purpose.

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