Economics Quiz: National Income Trivia Questions!

National income is a measure of the total value of goods and services produced within a country's borders in a given time period. It includes the value of both tangible goods, such as manufactured products, and intangible services, such as healthcare and education. This measure provides an indication of the overall economic activity and productivity of a country, allowing for comparisons and analysis of economic growth and development.

Per capita income refers to the average income earned by each individual in a specific population. It is a commonly used indicator to measure the living standard of people within a country or region. A higher per capita income generally indicates a higher standard of living, as individuals have more disposable income to spend on goods and services. Therefore, the correct answer is "Living standard of people."

The primary sector refers to the part of the economy that involves the extraction or production of raw materials. Agriculture is a key component of the primary sector as it involves the cultivation of crops, raising livestock, and other activities related to farming. This sector plays a crucial role in providing food and raw materials for other industries. Trade, construction, and telecommunication are not considered part of the primary sector as they are categorized under the secondary or tertiary sectors of the economy.

not-available-via-ai

The correct answer is "Expenditure side." The expenditure method estimates national income by calculating the total amount spent on goods and services in an economy. This includes spending by households, businesses, and the government. By analyzing the expenditure side, economists can determine the overall level of economic activity and the total value of goods and services produced in a country.

Gross National Product (GNP) is the correct answer because it is a measure of the total value of all final goods and services produced by the residents of a country in a given period of time, regardless of where the production takes place. It includes both the domestic production and the income earned from abroad. GNP is an important indicator of a country's economic performance and is used to compare the economic output of different countries. Real Income, Money Income, and Nominal Income are not synonymous with National Income and do not capture the same breadth of economic activity.

The income method is used to calculate the total income generated by an individual or a business. It includes all forms of income, such as earnings from employment, rental income, dividends, and interest. By summing up all these sources of income, the income method provides a comprehensive measure of the total income generated.

The correct answer is GNP (-) Depreciation. GNP stands for Gross National Product, which is the total value of goods and services produced by the residents of a country, including income earned abroad. Depreciation refers to the decrease in value of capital goods over time. By subtracting depreciation from GNP, we get the Net National Product, which represents the net income generated by a country's residents after accounting for the wear and tear on capital goods. Therefore, GNP (-) Depreciation is the most accurate measure of a country's true economic output.

India's per capita income refers to the average income earned by each individual in the country. The correct answer of 950 dollars suggests that on average, each person in India earns 950 dollars annually. This figure is used to measure the economic well-being and standard of living of the population. It indicates the level of income distribution and economic development in the country.

The correct answer is 15.8%. This means that the primary sector, which includes agriculture, forestry, fishing, and mining, contributes 15.8% to the total national income in India. This indicates that a significant portion of India's income comes from these primary activities, highlighting the importance of the agricultural and natural resource sectors in the country's economy.