Account and Finance Questions Practice Question and Answer
8 Q: Other name of Net National Product at market price?
401 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: The Income of Indians working abroad is-
389 06511585710a18f5082fb1e12
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: A rising per Capita Income will indicate a better welfare if it is accompanied by –
389 0651292f156a7b2508cb4d87c
651292f156a7b2508cb4d87c- 1Unchanged Income distribution overall.false
- 2Changed Income distribution in favour of rich.false
- 3Changed Income distribution in favour of poor.true
- 4Changed Income distribution in favour of Industrial Labour.false
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Answer : 3. "Changed Income distribution in favour of poor."
Explanation :
A rising per Capita Income will indicate a better welfare if it is accompanied by changed Income distribution in favour of Poor.
Q: The Census of Indian agriculture is done by–
381 065115a30af64a2609c5e08a4
65115a30af64a2609c5e08a4- 1Production Methodtrue
- 2Income Methodfalse
- 3Expenditure Methodfalse
- 4Consumption Methodfalse
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Answer : 1. "Production Method "
Explanation :
Under the consideration of India economy, census of agriculture, is done by production method.
Q: GDP at factor cost equals–
374 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: If a country produces consumer goods only and nothing else, then-
372 06511572f10a18f5082fb1afd
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: Which of the following represents the saving of the Private Corporate Sector?
372 0651157c956a7b2508cb0dc7d
651157c956a7b2508cb0dc7d- 1Undistributed profitstrue
- 2Excess of income over expenditurefalse
- 3Dividends paid to shareholdersfalse
- 4Total profit of a companyfalse
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Answer : 1. "Undistributed profits"
Explanation :
For private corporate sector, retained profits adjusted for non operating surplus/deficit is considered as net saving
Q: Forced saving refers to-
371 06511558410a18f5082fb144e
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.