Chapter Exam

Unit 7: National Income Analysis — Online MCQ Test

Q: What does GDP stand for?

Answer: A. Gross Domestic Product — GDP means Gross Domestic Product. It is the total value of final goods and services produced within a country during a year.

Q: Which of the following is a measure of national income at market prices?

Answer: B. GDP — GDP at market prices measures the value of final output produced within domestic territory using market prices.

Q: Which of the following statements is correct?

Answer: B. GNP includes income earned abroad by residents — GNP includes GDP plus net factor income from abroad, so income earned by residents outside the country is included.

Q: Which one of the following is the most appropriate formula for Net National Product at factor cost?

Answer: B. GNP - depreciation - indirect taxes + subsidies — NNP at factor cost is obtained from GNP by subtracting depreciation and net indirect taxes. This gives national income at factor cost.

ECONOMICS · CLASS 11 INTERMEDIATE 1 YEAR · Telangana State Board

Practice Unit 7: National Income Analysis with a free chapter-wise online MCQ test for Telangana State Board CLASS 11 INTERMEDIATE 1 YEAR ECONOMICS. This chapter covers: Focusing on macroeconomics this chapter details national income concepts GDP NDP GNP NNP personal income disposable income measurement methods circular flow of income and economic.... AI-generated questions from basic to board-exam level, with instant results and explanations.

Questions

20m

Time Limit

Attempts Left

10 random questions from this chapter (mixed difficulty)
Questions you've seen before won't repeat until the pool resets
You have 20 minutes — exam auto-submits when time is up
Maximum 3 attempts per chapter
Results and explanations shown immediately after submission

New here? Register free — includes 3 free chapter exams.

Unit 7: National Income Analysis — Important Questions & Answers (FAQ)

Frequently asked questions from Telangana State Board CLASS 11 INTERMEDIATE 1 YEAR ECONOMICS — Unit 7: National Income Analysis, with answers and explanations. These are sample questions; the exam has its own separate question set.

What does GDP stand for?

A. Gross Domestic Product ✓
B. General Domestic Product
C. Gross Development Product
D. Global Domestic Product

Answer: A. Gross Domestic Product
GDP means Gross Domestic Product. It is the total value of final goods and services produced within a country during a year.

Which of the following is a measure of national income at market prices?

A. NNP
B. GDP ✓
C. Personal Income
D. Disposable Income

Answer: B. GDP
GDP at market prices measures the value of final output produced within domestic territory using market prices.

National income is commonly measured using which of the following methods?

A. Product method, Income method, Expenditure method ✓
B. Profit method, Loss method, Savings method
C. Banking method, Tax method, Trade method
D. Domestic method, Foreign method, Capital method

Answer: A. Product method, Income method, Expenditure method
The three standard methods of measuring national income are the product, income, and expenditure methods.

Which of the following statements is correct?

A. GNP excludes income earned abroad by residents
B. GNP includes income earned abroad by residents ✓
C. GDP includes only foreign income of residents
D. NNP is always greater than GDP

Answer: B. GNP includes income earned abroad by residents
GNP includes GDP plus net factor income from abroad, so income earned by residents outside the country is included.

Which one of the following is the most appropriate formula for Net National Product at factor cost?

A. GDP + depreciation + indirect taxes - subsidies + net factor income from abroad
B. GNP - depreciation - indirect taxes + subsidies ✓
C. GDP - depreciation + net factor income from abroad
D. GDP + transfer payments - depreciation

Answer: B. GNP - depreciation - indirect taxes + subsidies
NNP at factor cost is obtained from GNP by subtracting depreciation and net indirect taxes. This gives national income at factor cost.

← Previous Chapter

Unit 6: Theories of Distribution

Next Chapter →

Unit 8: Theories of Employment and Public Finance