Understanding Gdp(12th Grade > Economics - 2 ) Questions and answers for exam Preparation

12th Grade > Economics - 2

UNDERSTANDING GDP MCQs

Total Questions : 30 | Page 1 of 3 pages

Question 1. Wheat is an example of:

Final good
Intermediate good
Either a or b, depending on the use
Either a or b, depending on the quantity

Discuss Question

Answer: Option C. -> Either a or b, depending on the use
:
C
Wheat can be either a final or an intermediate good depending on how it is consumed.

Question 2. A key difference between goods and services is :

Price
Tangibility
Size
Mode of payment

Discuss Question

Answer: Option B. -> Tangibility
:
B
Goods are tangible, physical items, while services are not tangible.

Question 3. Which of the following items is not included while estimating GNP of a country at market price?

Sales of the enterprises
Indirect taxes
Remittances by NRIs
Subsidy

Discuss Question

Answer: Option C. -> Remittances by NRIs
:
C
Remittances from NRIs are excluded as they are transfer payments.

Question 4. Own account production of services is not included in national income because:

Services are different from goods
Services are not productive
It is difficult to measure market value of such services
None of these

Discuss Question

Answer: Option C. -> It is difficult to measure market value of such services
:
C
Market value cannot be estimated for these services.

Question 5. Household inventory is:

Not included in national income
A stock concept
Both (a) and (b)
None of these

Discuss Question

Answer: Option C. -> Both (a) and (b)
:
C
Household inventory is a stock variable, and it is not included in national income.

Question 6. To which of the following factors of production does the payment of interest go to?

Land
Labour
Capital
Entrepreneurship

Discuss Question

Answer: Option C. -> Capital
:
C
Capital earns returns in the form of interest.

Question 7. Market price of the final goods and services (including depreciation) produced within the domestic territory of a country during an accounting year, is called :

GDP at market price
GNP at market price
GDP at factor cost
GNP at factor cost

Discuss Question

Answer: Option A. -> GDP at market price
:
A
GDP refers to the total market value of all goods and services.

Question 8. Calculate the total value added from the following data. Ignore units.

\begin{matrix} Value of output in primary sector & 800 Value of output in secondary sector & 200 Value of output in tertiary sector & 300 Value of raw materials purchased by primary sector & 400 Value of raw materials purchased by secondary sector & 100 Value of raw materials purchased by tertiary sector & 50 \end{matrix}

400
800
750
1,300

Discuss Question

Answer: Option C. -> 750
:
C
Value added = Value of output in all sectors-Value of raw materials purchased by all sectors

Question 9. A quantity measured per unit of time period is known as :

Stock variable
Flow variable
Inventory
None of these

Discuss Question

Answer: Option B. -> Flow variable
:
B
Flow variables are measured per unit time.

Question 10. Suppose at the beginning of the year, company ABC had 5 units in its inventory. At the end of the year, it had 50 units in its inventory. The change in stock here is: