Account and Finance Practice Question and Answer
8 Q: Personal Income produced in a country is not included in–
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6512906b7cef9d502469a1c2- 1Production income from NDPfalse
- 2Net Production Income from foreign.false
- 3Transfer Income from governmentfalse
- 4Current Payment on Foreign loans.true
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Answer : 4. "Current Payment on Foreign loans."
Explanation :
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.
Q: A ‘Transfer Income’ is as –
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651166619c491b8125b98d30- 1Income which is not produced by as production process.true
- 2Income taken away from one person given over to another.false
- 3Unearned Incomefalse
- 4Earned Incomefalse
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Answer : 1. "Income which is not produced by as production process."
Explanation :
Transfer paymentOne-way payment of money for which no money, good, or service is received in exchange. Governments use such payments as means of income redistribution by giving out money under social welfare programs such as social security, old age or disability pensions, student grants, unemployment compensation, etc. Subsidies paid to exporters, farmers, manufacturers, however, are not considered transfer payments. Transfer payments are excluded in computing gross national product.
Q: One of the main factors that led to rapid expansion of Indian exports is–
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651165d463078e50a29fb72f- 1Imposition of export dutyfalse
- 2Liberalization of the economytrue
- 3Recession in other countriesfalse
- 4Diversification of exportsfalse
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Answer : 2. "Liberalization of the economy"
Explanation :
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
Q: Compared to rich the poors saving is–
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6511655ccb11fc5036e3f981- 1A larger part of their incomefalse
- 2An equal part of their incomefalse
- 3A small part of their incometrue
- 4All of their incomesfalse
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Answer : 3. "A small part of their income"
Explanation :
A necessary level of consumption produces differences in income and saving. This implies that the poor household have lower saving rates because they cannot “afford to save” after buying the necessities.
Q: Other name of Net National Product at market price?
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651164d99c491b8125b988a8- 1National Incometrue
- 2Gross Domestic Productionfalse
- 3Personal Incomefalse
- 4Per Capital Incomefalse
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Answer : 1. "National Income "
Explanation :
NNPMP = GNPMP – depreciation
Q: National Income include–
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65116455cb11fc5036e3f5be- 1Financial help to earthquake victimsfalse
- 2Poket money of a childfalse
- 3Winning of a lottery Prizefalse
- 4Construction of a new Housetrue
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Answer : 4. "Construction of a new House"
Explanation :
When new house is given on rent the factor income will increase. Hence, it will be part of National Income. Rests are part of Transfer Payment.
Q: The Central Statistical Organisation (CSO) provides data under a new revised series in which the base year is taken as–
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65115b82cb11fc5036e37488- 11960-61false
- 21970-71false
- 32011-12true
- 41990-91false
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Answer : 3. "2011-12 "
Explanation :
The CSO provides data under a new revised series in which the base year is taken as 2011–12.
Q: The Census of Indian agriculture is done by–
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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.