Which of the following would not constitute an economic activity in Economics?
(A) A teacher teaching students in his college
(B) A teacher teaching students in a coaching institute
(C) A teacher teaching his own daughter at home
(D) A teacher teaching students under Sarva Shiksha Abhiyan Scheme
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.
Gross Profit means–
(A) Total investment over total savings
(B) Changes in methods of production
(C) Changes in the form of business organisation
(D) Total receipts over total expenditure.
Gross profit = Net sales (total receipts) - Cost of goods sold (total expenditure)
In other words it is the total receipt over total cost.
Per Capita Income is equal to–
(A) National Income/Total population of the country
(B) National Income + Population
(C) National Income - Population
(D) National Income x Population
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.
Which of the following is deducted from NNP to arrive at NI?
(A) Indirect tax
(B) Capital consumption allowance
(C) Subsidy
(D) Interest
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
While computing National Income estimates, which of the following is required to be observed?
(A) The value of exports to be added and the value of imports to be subtracted
(B) The value of exports to be subtracted and the value of imports to be added
(C) The value of both exports and imports to be added
(D) Thevalue of both exports and imports to be subtracted
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
Other name of Net National Product at market price?
(A) National Income
(B) Gross Domestic Production
(C) Personal Income
(D) Per Capital Income
NNPMP = GNPMP – depreciation
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
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
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.
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.
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.
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 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
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