Account and Finance Questions Practice Question and Answer
8 Q: Forced saving refers to-
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6511558410a18f5082fb144e- 1Compulsory deposits imposed on income tax payersfalse
- 2Provident fund contribution of private sector employeesfalse
- 3Reduction of consumption consequent to a rise in pricetrue
- 4Taxes on individual income and wealthfalse
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Answer : 3. "Reduction of consumption consequent to a rise in price"
Explanation :
According to Nobel Prize winner Frederick Wan, Forced Saving in an economic situation in which consumer spend less than their disposable income, not because they want to save but because the goods they seek are not avoidable or because goods are too expensive.
Q: Income and consumption are–
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6512a20310a18f5082ff294c- 1Inversely Relatedfalse
- 2Directly Relatedtrue
- 3Partially Relatedfalse
- 4Unrelatedfalse
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Answer : 2. "Directly Related"
Explanation :
Consumption and income are directly or positively related. An increase in income results in increase in consumption and vice-versa.
Q: GDP is what percent of Fiscal deficit?
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6511597ccb11fc5036e368e9- 17false
- 24true
- 38false
- 41false
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Answer : 2. "4"
Explanation :
Expl:- In budget 2014-15 the percent of G.D.P was 4.1 of fiscal deficit. But in 2015-16 its percent becomes 3.9% of fiscal deficit.
Q: GDP at factor cost equals–
742 0651293bb56a7b2508cb4db19
651293bb56a7b2508cb4db19- 1GDP – Indirect Tax + Subsidytrue
- 2GNP – depreciationfalse
- 3NNP + depreciationfalse
- 4GDP – subsidy + indirect tax.false
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Answer : 1. "GDP – Indirect Tax + Subsidy"
Q: Other name of Net National Product at market price?
741 0651164d99c491b8125b988a8
651164d99c491b8125b988a8- 1National Incometrue
- 2Gross Domestic Productionfalse
- 3Personal Incomefalse
- 4Per Capital Incomefalse
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Answer : 1. "National Income "
Explanation :
NNPMP = GNPMP – depreciation
Q: If a country produces consumer goods only and nothing else, then-
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6511572f10a18f5082fb1afd- 1Standard of living will be highestfalse
- 2The country have certain amount of goodfalse
- 3The country will soon become poor if external trade will not happentrue
- 4The country will gradually become rich if external trade will not happenfalse
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Answer : 3. "The country will soon become poor if external trade will not happen"
Explanation :
If any country will produce only consumer good, then gradually the country will become poor as there will be no exchange of other goods and the economy of that country will highly be affected.
Q: The Income of Indians working abroad is-
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6511585710a18f5082fb1e12- 1Domestic Income of Indiafalse
- 2Income earned from abroadtrue
- 3Net domestic product of Indiafalse
- 4Grave domestic product of India.false
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Answer : 2. "Income earned from abroad"
Explanation :
Expl:- NDPmp + NFIA = NNPmp
GDPmp + NFIA + GNPmp
Q: Which of the following would not constitute an economic activity in Economics?
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6512a4d2af64a2609c621ce1- 1A teacher teaching students in his collegefalse
- 2A teacher teaching students in a coaching institutefalse
- 3A teacher teaching his own daughter at hometrue
- 4A teacher teaching students under Sarva Shiksha Abhiyan Schemefalse
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Answer : 3. "A teacher teaching his own daughter at home"
Explanation :
A teacher who is teaching his own daughter is not a part of economic activity as the imputed value of such activities can not be calculated.