1. The first National Income calculation
on a scientific basis in India is in the year
A. 1947-48
B. 1951-52
C. 1931-32
D. 1990-91
2. NNP means
A. GDP – depreciation
B. GDP + depreciation
C. NNP – depreciation
D. GNP – depreciation
3. “Rest of the world” is the major element in
A. Two sector model
B. Three sector model
C. Four sector model
D. All the above
4. Cotton yarns purchased by handloom
worker is
A. An intermediate good
B. A consumer good
C. A capital good
D. None of these
Ans: A
5. “Inflation is always and everywhere a
monetary phenomenon” these are the
A. famous words of Milton Friedman
B. Adam Smith
C. David Ricardo
D. J M Keynes
Ans: A
6. When the rise prices is very slow like
that of a snail is called
A. Hyper inflation
B. Running inflation
C. Creeping inflation
D. Walking inflation
Ans: C
7. The concept of “laissez-faire” was the
contribution of
A. Classical economist
B. Neo Classical economist
C. Keynesian economist
D. Supply side economist
Ans: A
8. “Supply creates its own demand” is the
idea of
A. JB Say
B. Samuelson
C. JM Keynes
D. Milton Friedman
Ans: A
9. Which of the following is not an
assumption of classical theory
A. Neutrality of money
B. Wage price flexibility
C. Involuntary unemployment
D. Long run
10. Defects in SNA include
A. Neglects depletion of natural capital
B. Neglects environmental pollution
C. Expenditure to defend the effects of
pollution
D. All of the above
11. Green accounting accounts for
A. Depletion of natural resources
B. Costs of environmental degradation
C. Pollution
D. All of the above
12. Quantity of money according to
classical theory will determine the
A. Saving and investment
B. National output
C. Real wage
D. Price level
13. Under Keynesian cross model, rate of
interest is
A. Endogenous variable
B. Exogenous variable
C. Exponential variable
D. None of the above
14. Wage price flexibility is the contribution of which of the following economist?
A. J B Say
B. J M Keynes
C. J S Mill
D. A C Pigou
15. According to Keynes what causes
changes in inducement to invest by entrepreneurs?
A. MPC and MEI
B. MEC and MPS
C. MEC and rate of interest
D. MPC and rate of interest
16. The deficiency of aggregate demand
during depression period leads to
A. Seasonal unemployment
B. Voluntary unemployment
C. Involuntary unemployment
D. Frictional unemployment
17. In Keynesian model of income
determination autonomous investment occurs due to
A. Change in income
B. Change in employment
C. Change in profit
D. Change in social welfare programs
18. Early Keynesian economists’ view is
A. Money alone matters
B. Money does not matters
C. Money partly matters
D. None of the above
19. Which among the following is not a
tool of fiscal policy
A. Government expenditure
B. Taxation
C. Transfer payments
D. Bank rate
20. The formula for calculating simple
multiplier is
A.1/1-MPC
B. 1/MPC=MPS
C. 1/1-MPS
D. 1/MPC+MPS
21. The balanced budget multiplier in the
Keynesian Cross Model is
A. Equal to one.
B. Greater than one.
C. less than one
D. None of these
22. The concept of multiplier was first
developed by
A. J M Keynes
B. F A Khan
C. J D Clark
D. Samuelson
23. The formula for calculating investment
multiplier is
A. ∆ Y
∆I
B. ∆Y+∆ I
C.∆I
∆Y
D. ∆ C+ ∆I
24. Which among the following does not
have the application of multiplier
A. Determination of income
B. Fiscal policy
C. Monetary policy
D. Foreign direct investment
25. Which of the following Fisher’s equation
of exchange is not correct
A. MV=PT
B.MV=PQ
C. MV=PY
D. MV=PR
26. The tendency of the people to believe
the currency of nominal value at present to be equal to purchasing power at a
previous point is called
A. Legal tender money
B. Demonetization
C. Money illusion
D. Remonetisation
27. The relationship between money supply
and price level under Quantity theory of money is:
A. Direct non proportionate relationship
B. Inverse proportionate relationship
C. Direct proportionate relationship
D. Inverse non proportionate relationship
28. In Keynes consumption theory the chief
factor that determines consumption expenditure is
A. Personal income
B. Relative income
C. Permanent income
D. Disposable income
29. Under Keynes Psychological law of
consumption the relationship between consumption and income is
A. Linear and proportional
B. Non-linear and proportional
C. Linear and non-proportional
D. Nonlinear and non-proportional
30. Equation M=KPT is propounded by which
of the following Cambridge economists
A. Keynes
B. Marshall
C. Robertson
D. Pigou
31. In equation C= a + by, the value of b
lies between
a. 0<b
b. 0>b<1
c. 0=b<1
d. 0>b<1
32. The relation between APC and MPC in
Keynes Psychological consumption function is
a. MPC<APC
b. MPC=APC
c. MPC>APC
d. None of the above
33. Under Keyne’s consumption function,
consumption is a _______ function of income
A. Unstable
B. Inverse
C. Stable
D. Neutral
34. Under Classical theory, demand for
labour is the same as
A. MP curve of labor
B. MRP curve of labor
C. MC curve of labor
D. MPP curve of labour
35. The reason for existence of
proportional relationship between money stock and price level is
A. Money illusion
B. Inflation
C. Full employment
D. Wage price flexibility
36. Which among the following is not a
feature of Keynesian theory?
A. Short run
B. Wage price flexibility
C. Fiscal policy
D. Underemployment equilibrium
37. Money on wings indicates
A. Store value function of money
B. Medium of exchange function of money
C. Measure of value function of money
D. All of the above
38. Cash balance approach in Quantity
theory emphasis on
A. Money as a medium of exchange
B. Money as a store of value
C. Money as a measure of value
D. Money as a transfer of value
39. In the classical theory, output and
employment are determined by
A. Production function
B. Demand for labour and supply of labour
C. Effective demand
D. Both A & B
40. Under Keynesian theory employment and
output is determined by
A. Saving investment equality
B. Production function
C. Effective demand
D. Demand for money and supply of money
41. The concept money illusion is firstly
coined out by
A. Irving Fischer
B. Milton Friedman
C. Alfred Marshall
D. J M Keynes
Ans: A
42. Which of the following equation is not
true?
A. APC+APS=1
B. 1-APC=APS
C. 1-APS=APC
D. APC-1=APS
43. Under classical theory, rate of
interest is determined by
A. Demand for money and supply of money
B. Demand for capital and supply of
savings
C. Demand for investment and price level
D. Demand for investment and supply of
money
44. This independence of real variables
from changes in money supply and nominal variables is called
A. Money illusion
B. Neutrality of money
C. Classical dichotomy
D. Money multiplier
45. The expansion in money supply doesn’t
affect the real output and employment in the economy indicates
A. Effectiveness of monetary policy
B. Effectiveness of fiscal policy
C. Neutrality of money
D. Money illusion
46. An increase in output and employment
in the economy which arise out of increasing consumption demand and rise in
real wealth is called
A. Demonstration effect
B. Keynes effect
C. Income effect
D. Pigou effect
47. Which of the following measures have
to be adopted to curb out inflation from the economy?
A. Increase in government expenditure and
reduction in taxation
B. Decrease in Government expenditure and
increase in taxation
C. Increase in transfer payments and
increase in taxation
D. Decrease in transfer payments and
decrease in taxation
48. During great depression period
unemployment in USA rose by
A. 15%
B. 25%
C. 5%
D. 24%
Ans: B
49. Keyne’s introduced the book General
theory of employment, interest and money in the year
A. 1929
B. 1933
C. 1936
D. 1935
50. Which of the following have to be
adopted to remove recession from the economy?
A. Increase in Government welfare programs
and increase in taxation
B. Increase in Government welfare projects
and decrease in taxation
C. Increase in Public borrowing and
decrease in taxation
D. Decrease in public borrowing and
increase in taxation
51. The two cornerstones of classical
economics are
A. The
Phillips Curve and Say’s Law
B. Say’s
Law and the Quantity Theory of Money
C. The
Quantity Theory of Money and the Liquidity Preference Theory
D. Say’s Law and the Liquidity Preference
Theory
52. In the classical view, the price level
is determined by
A. aggregate supply
B. aggregate demand and supply
C. supply of money
D. aggregate demand
53. Assume a consumption function of the
following form: C = 50 + .8Y. If income is equal to $1,000, then consumption is
A. $50
B. $1,050
C. $1,000
D. $850
54. During period of recession
A. aggregate output declines
B. price level starts rising
C. unemployment declines
D. aggregate output rises
55. Keynesian economics came to be widely
accepted because it finds solution to
A. Stagflation of 1970s
B. Recession in 2008
C. Low growth rates in 1950s
D. Great depression of 1930s
56. Macroeconomics is a study of economics
that deals with which 4 major factors: A. households, firms, government, and
demand-supply
B. households, firms, government and
external sector
C. profits, price level, cost and expenditure
D. none of the above
57. Average number of times a unit of
money changes from one hand to another is called
A. price level
B. Money supply
C. Value of money
D. Velocity of circulation
58. Who is considered as the father of
modern macroeconomics?
A. Ragner Frisch
B. Adam smith
C. J M Keynes
D. Milton Friedman
Ans: C
59. Under Keynesian theory of income
determination, investment
A. Depends on income
B. Endogenous
C. Exogenous
D. Depends on money supply
60. In a three sector economy, Y equals
A. C+I
B. C+I+G
C. C+I+G=(X-M)
D. None of these
61. Under equation C= a+by, b=0.8, what is
the value of expenditure multiplier
A. 4
B. 2
C. 5
D. 1
62. In equation C= a+by, (a) indicates
A. consumption at zero level of income
B. Average propensity to consume
C. MPC
D. None of the above
63. Under Keynesian framework income is
measured along
A. 450 line
B. Vertical line
C. Horizontal line
D. None of the above
64. Factor income of household sector is
equal to
A. Factor payments by firms
B. Factor income of firms
C. Expenditure of households
D. Income of households
65. Those goods which are meant for final
use of consumption are known as
A. Consumer goods
B. Value added goods
C. Intermediate goods
D. All the above
66. A laptop purchased by consumer is an
example of
A. An intermediate good
B. A consumer good
C. Intermediate consumption
D. None of the above
67. The policy relates to the taxation,
expenditure and borrowing of the government is known as
A. Monetary policy
B. Fiscal policy
C. Taxation policy
D. None of the above
68. Which is the most liquid measure of
money supply
A. M1
B. M2
C. M3
D. M4
69. If aggregate demand falls short of
current output, it would result in
A. business firms will cut production to
keep from accumulating inventories.
B. business firms will expand production
to keep from accumulating inventories.
C. business firms will cut production to
build up inventories.
D. business firms will expand production
to build up inventories.
70. The expenditure multiplier is the
ratio of
A) The change in equilibrium output to a
change in the monetary base.
B) The change in the money supply to a
change in the monetary base.
C) The change in the money supply to a
change in the autonomous expenditure.
D) The change in equilibrium output to a
change in the autonomous expenditure.
71. In the Keynesian model of income
determination, consumer expenditure includes spending by
A) Consumers on personal computers.
B) Businesses on personal computers.
C) Governments on personal computers.
D) All of the above since computers are
consumer durables.
72. The multiplier concept is important in
the Keynesian model because
A) It explains why a large change in
autonomous spending has such a small impact on equilibrium output.
B) It explains why a small change in
autonomous spending can have a large impact on equilibrium output.
C) It is crucial to understanding why
changes in investment spending are viewed as the root cause of business cycles
fluctuations.
D) both (b) and (c) of the above.
73. Under Keynesian model aggregate
expenditure is measures along
A. Vertical axis
B. Horizontal axis
C. Vertical intercept
D. 450 line
74. Which of the following is an example
of capital expenditure
A. spending on laptops by consumers
B. spending on power-looms by business
firms
C. spending on infrastructure by
Government
D. Both B&C
75. Under Simple Keynesian model the
aggregate price level
A. Vary for a short period
B. Fixed in long run
C. Fixed
D. None of the above
76. The well-known work formulated by J.M.
Keynes:
A. general theory of employment interests
and money
B. principles of economics
C. Principles of Modern Trade
D. Modern Theory of Fiscal Policy
77. Transaction demand for money is a
function of:
A. income
B. interest
C. price
D. inflation
78. The value of MPC in Keynesian model
is:
A. greater than zero and less than one
B. MPC=1
C. MPC greater than one
D. None of the above
79. According to Keynesian multiplayer
model the value of MPC is 0.75 what would be the value of multiplayer
A. 4.0
B. 1.33
C. 2.00
D. None of the above
80. According to two sector Keynesian
model the aggregate demand is
A. summation of consumption expenditure
and investment expenditure
B. consumption expenditure only
C investment expenditure only
D None of the expenditure
81. Choose correct option Statement
1: Model assumes stickiness prices
Statement
2: Classical model assumes flexibility of
prices
A. statement one and two are correct
B. statement one only correct
C. statement two only correct
D. both are incorrect
82. Interest rates and bond prices are;
A. positively related
B. negatively related
C. not related
D. Either A or B
Ans: B
83. Keynes’s motivation in developing the
aggregate output determination model from his concern with explaining;
A. the hyperinflations of the 1920s.
B. why the Great Depression occurred.
C. the high unemployment in Great Britain
before World War I.
D. the high unemployment in Great Britain
after World War II
84. Statement 1: There exists an inverse relationship between market rates of interest and price of bond
Statement 2: The liquidity trap is a situation when at some very low rate of interest all asset holders become bears
A. both are incorrect
B. both are correct
C. statement one is correct and two is not
correct
D. statement one is incorrect and two is
correct
85. The Foreign Trade Multiplier is the
ratio of;
A. the change in equilibrium output to a
change in import.
B. the change in the money supply to a
change in the monetary base.
C. the change in the money supply to a
change in the autonomous expenditure.
D. the change in equilibrium output to a
change in the autonomous expenditure.
86. An increase in planned investment
spending causes aggregate output to;
A. increase by an amount equal to the
change in investment spending.
B. increase by an amount less than the
change in investment spending.
C. increase by an amount greater than the change
in investment spending.
D. decrease by an amount less than the
change in investment
87. Keynes assumed that the price level
was fixed because
A. inflation was not a serious problem
during the Great Depression.
B. his primary focus was on output and
employment.
C. his primary focus was on interest rates
and investment spending.
D. both (a) and (b) of the above.
88. IS curve shows that when income
increases
A. Interest rate must fall to restore
equilibrium in the goods market
B. Interest rate must fall to restore
Equilibrium in the asset market
C. Interest rate must rise to restore
equilibrium in the asset market
D. Interest rate must rise restore
equilibrium in the goods market
89. The LM curve slope:
A. vertical
B. slope upward
C. slope downwards
D. Horizontal
90. The slope of IS curve
A vertical
B slope upward
C slope downwards
D Horizontal
91. A significant increase in public
expenditure lead to:
A. Right ward shift in LM curve
B. right ward shift in IS curve
C. left ward shift in LM curve
D. Left ward shift in IS curve
92. Multiplayer is the ratio of
A. change in income to change in
investment
B. change in investment to change in
income
C. change in income to change in interest
D. None of the above
93. In a closed economy, aggregate demand
is the sum of
A. consumer expenditure, actual investment
spending, and government spending.
B. consumer expenditure, planned investment spending, and government spending.
C. consumer expenditure, actual
investment spending, government spending, and net exports.
D. consumer expenditure, planned
investment spending, government spending, and net exports.
94. Keynes assumed that the price level
was fixed because
A. inflation was not a serious problem
during the Great Depression.
B. his primary focus was on output and
employment.
C. his primary focus was on interest rates
and investment spending.
D. both (B) and (C) of the above.
95. Accelerator theory of investment is
the ratio of:
A. change in income to change investment
B. change in investment to change in
income
C. change in income to change in interest
D. None of the above
96. IS curve represent the combination of?
A. combination of income and interest
B. Combination of price and output
C. combination of interest and investment
D. None of the above
97. LM curve represents the combination of;
A. price and output
B. Demand for money and supply of money
C. income and investment
D. Money supply and investment
98. Effective demand is where;
A. aggregate demand is equal to aggregate
supply
B. Demand for money is equal to supply of
money
C. saving is equal to supply
D. None of the above
99. According to Keynesian theory:
Statement 1: price are sticky
Statement 2: after full employment change
in aggregate demand lead to instatements
A. Only statement 1 is correct
B. only statement 2 are correct
C. both are correct
D. None of the above are correct
100. Speculative demand for money is a
function of
A. income
B. interest
C. price
D. investment
101. Which of the following is NOT a flow
variable?
a. Income
b. Wealth
c. Saving
d. Investment
Ans: Wealth
102. Macroeconomics is concerned with:
a. The level of output of goods and
services
b. The general level of prices
c. The growth of income
D. All the above
Ans: All the above
103. Which of the following is NOT a stock
variable?
a. Capital
b. Wealth
c. Interest
d. Saving
Ans: Saving
104. The word Macro was first used in
Economics by:
a. Keynes
b. Marshall
c. Ragnar Frisch
d. J.R. Hicks
Ans: Ragnar Frisch
105. National Income is a:
a. Stock concept
b. Flow concept
c. Cross section analysis
d. None of the above
Ans: Flow concept
106. A variable which has no time
dimension but is described at a specific moment of time is:
a. Stock Variable
b. Flow Variable
c. Ratio Variable
d. None of the above
Ans: Stock Variable
107. Stock variable is measured:
a. At a point of time
b. During a period of time
c. In an accounting year
d. None of these
Ans: At a point of time
108. If a model has no equilibrium, it can
be analyzed only by:
a. Static method
b. Dynamic method
c. Comparative static method
d. static and comparative static method
Ans: Dynamic method
109. Macro-static equilibrium implies:
a. A complete absence of change
b. A change at an unchanged rate
c. A change in only absolute values
d. None of these
Ans: A complete absence of change
110. Who introduced the terms ex-ante and
ex-post?
a. Myrdal
b. Ricado
c. Malthus
d. Say
Ans: Myrdal
111. Ct = f(Yt-I) is:
a. Static Model
b. Dynamic model
c. Comparative static
d. None of these
Ans: Static Model
112. Which of the following is a phase of
Circular flow of income?
a. Generation phase
b. Distribution phase
c. Disposition phase
d. All of these
Ans:All of these
113. Which of the following is NOT
considered a factor income?
a. Rent
b. Wage
c. Profit
d. Gifts from Abroad
Ans: Gifts from Abroad
114. Two sector economy consists of:
a. Households, firms
b. Households, Government
c. Firms, Foreign sector
d. Firms, Government.
Ans: Households, firms
115. Real flow is also known as:
a. Nominal flow
b. Money flow
c. Physical flow
d. Both a and b
Ans: Physical flow
116. Which of the following is the
consumption sector?
a. Household
b. Firm
c. Government
d. Foreign
Ans: Household
117. Real flow refers to the flow of
factor services from ------ to -----
a. Firms to households
b. Households to firms
c. Firms to government
d. Households to government
Ans: Households to firms
118. In a closed economy, --------------
is not included
a. Households
b. Firm
c. Government
d. Foreign sector
Ans: Foreign sector
119. Which of the following constitute the
reason for difference between Market prices and factor cost?
a. Indirect Taxes
b. Subsidies
c. Both A and B
d. neither a nor b
Ans: Both A and B
120. If factor cost is greater than Market
price, then it means that:
a. Indirect taxes > subsidies
b. Indirect taxes = subsidies
c. Indirect Taxes < Subsidies
d. Indirect taxes = and > subsidies
Ans: Indirect Taxes < Subsidies
121. Final goods refer to those goods which
are used either for ............. or for .......... a. Consumption, Investment
b. Consumption, resale
c. Resale, investment
d. Resale, further production.
Ans: Consumption, Investment
122. Net Factor Income from Abroad is:
a. Export minus Imports
b. Visible Exports minus Visible Imports
c. Factor Income Received From Abroad
Minus Factor Income Paid Abroad
d. Factor income received from abroad
Ans: Factor Income Received From Abroad
Minus Factor Income Paid Abroad
123. Depreciation means:
a. destruction of a plant in a fire
accident
b. loss of fixed assets over time due to
wear and tear
c. loss of fixed assets in an earthquake
d. closure of the plant due to lockout
Ans: loss of fixed assets over time due to
wear and tear
124. Market price ad factor cost would be
equal when there is:
a. no direct tax
b. no indirect tax
c. no subsidy
d. no indirect tax and no subsidy
Ans: no indirect tax and no subsidy
125. Which of the following is an example
of Transfer Income?
a. Bonus
b. Unemployment Allowance
c. Compensation from the employer
d. All of these
Ans: All of these
126. Which of the following is an example
of an intermediate good?
a. car sold by a dealer of second hand
cars
b. steel and cement used to construct a
flyover
c. fertilizers purchased by a farmer
d. all of these
Ans: all of these
127. Out of the following, which aggregate
represents 'National Income'?
a. NNP MP
b. GNP FC
c. NNP FC
d. GNP MP
Ans: NNP FC
128. If factor income received from abroad
is equal to factor income paid abroad, then which of the following is not a
valid statement?
a. national income = domestic income
b. NDC fc + depreciation = GNP fc
c. NDP fc + depreciation = GNP mp
d. all are valid
Ans: NDP FC + depreciation = GNP mp
129. Corporate tax is not a part of:
a. Personal Income
b. National income
c. Domestic income
d. Private income
Ans: Personal Income
130. National Disposable income is equal
to:
a. Private Final Consumption Expenditure +
Government Final Consumption Expenditure + National Saving
b. National Consumption Expenditure +
National Saving
c. National Income + Net Indirect Taxes +
Net Current Transfers from rest of the world.
D. all of these.
Ans: all of these.
131. If economic subsidies are added to
and Indirect taxes are subtracted from the national income at market prices,
then it will be equal to:
a. Domestic Income
b. National Income
c. GNP at Market Price
d. GDP at factor cost
Ans: National Income
132. In which type of economy, domestic
income is equal to national income?
a. Open economy
b. Closed Economy
c. Both a and b
d. Neither a nor b
Ans: Closed Economy
133. Domestic factor income is another
name for:
a. NDP fc
b. NNP mp
c. GDP fc
d. NNP fc
Ans: NDP fc
134. Which of the following is a part of
National Income?
A. old age pension
b. unemployment allowance
c. profit
d. scholarship
Ans: PROFIT
135. NDP at FC is less than National
Income when:
a. Net factor income from abroad is
positive
b. Net factor income from abroad is
negative
c. Net factor income from abroad is zero
d. Net exports are positive
Ans: Net factor income from abroad is
positive
136. National income is equal to:
a. Domestic product plus factor income
earned from abroad
b. Domestic product plus net factor income
earned from abroad
c. Domestic product mins factor income
earned from abroad
d. Domestic product plus export minus
imports
Ans: domestic product plus net factor
income earned from abroad
137. -----------is the net amount
available to households for consumption and saving
a. national income
b. personal income
c. personal disposable income
d. government income
Ans: personal disposable income
138. GNP exceeds NNP by:
a. Amount of total taxes
b. Government expenditure
c. Transfer payments
d. Difference between Gross investment and
Net Investment
Ans: Difference between Gross investment
and Net Investment
139. GDP MP = Rs.1000 and subsidies =
Rs.50, then GDP FC will be:
a. 1050
b. 950
c. 1000
d. 900
Ans:1050
140. "Income method" is also
known as:
a. distributive share method
b. income disposal method
c. industrial origin method
d. none of these
Ans: distributive share method
141. Which of the following is a synonym
of "Undistributed Profits"?
a. savings of private corporate sector
b. reserves and surplus
c. retained earnings
d. all of these
Ans: all of these
142. Which one is included in National
Income?
a. winning from lottery
b. milk purchase by a dairy shop
c. national debt interest
d. none of these.
Ans: none of these.
143. 'Distributed Profits' is also known
as:
a. Corporate tax
b. Dividend
c. Retained Earnings
d. None of these
Ans: Dividend
144. If a farmer sells Wheat to miller for
RS.500 and miller sells flour to baker for Rs.700 and baker sells bread to
consumer for Rs.1000, then total value added by Miller and baker is:
a. 500
b. 300
c. 1700
d. 1200
Ans: 500
145. Which of the following is included in
domestic income?
a. factor income from abroad
b. windfall gains
c. pension on retirement
d. capital gains
Ans: pension on retirement
146. Expenditure method focuses on
measurement of National income at:
a. phases of production of goods and
services
b. phase of income distribution
c. phase of income disposition
d. all of these
Ans: phase of income disposition
147. Which of the following is not an
economic activity and hence not included while estimating national income in India?
a. medical services rendered by a
dispensary
b. a housewife doing household work
c. a lawyer doing his practice
d. a maid working full time with a family
Ans: a housewife doing household work
148) National product at current prices is
higher than national product at constant prices during a period of:
a. Rising prices
b. Falling prices
c. Constant prices
d. Both a and b
Ans: Rising prices
149. Net Factor Income from Abroad is
taken into account when National Income is calculated by:
a. value added method
b. income method
c. expenditure method
d. any of the three methods
Ans: any of the three methods
150. Broker's commission on sale and
purchase of second hand goods is included in national income because:
a. It is a part of compensation of
employees
b. It is a part of Gross Domestic Capital
Formation
c. it is an income earned for rendering
productive services
d. None of these
Ans: it is an income earned for rendering productive service
