Economics Quiz: National Income Trivia Questions!
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National Income is otherwise called
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Real Income
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Money Income
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Nominal Income
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Gross National Product
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Dive into the fundamentals of economics with this engaging Economics Quiz: National Income Trivia Questions! Explore key concepts like Gross National Product, methods of calculating national income, and the significance of primary sectors. Perfect for learners aiming to understand economic indicators and their impact.
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- 2.
National Income of a country can be calculated by
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2 methods
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3 methods
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4 methods
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5 methods
Correct Answer
A. 3 methods -
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Net National Product
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GNP (-) Depreciation
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Net domestic product (-) Depreciation
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Per capita Income (-) Depreciation
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Gross domestic product (-) Depreciation
Correct Answer
A. GNP (-) DepreciationExplanation
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.Rate this question:
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- 4.
India's per capita Income is
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220 dollars
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950 dollars
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2930 dollars
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600 dollars
Correct Answer
A. 950 dollarsExplanation
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.Rate this question:
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- 5.
Primary sector consists of
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Trade
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Construction
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Telecommunication
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Agriculture
Correct Answer
A. AgricultureExplanation
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.Rate this question:
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- 6.
National Income is a measure of
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Total value of money
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Total value of food grains
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Total value of industrial products
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Total value of goods & services
Correct Answer
A. Total value of goods & servicesExplanation
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.Rate this question:
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- 7.
Expenditure method estimates national income from the
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Output side
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Income side
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Expenditure side
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Side savings
Correct Answer
A. Expenditure sideExplanation
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.Rate this question:
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- 8.
Income method sums all forms of
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Expenditure
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Income
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Savings
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Investment
Correct Answer
A. IncomeExplanation
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.Rate this question:
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- 9.
Per capital Income is an indicator of
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Richness of people
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Poverty of people
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Living standard of people
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Literacy of people
Correct Answer
A. Living standard of peopleExplanation
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."Rate this question:
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- 10.
Primary sector contribution to national Income in India is
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15.8 %
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25.8 %
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12.8 %
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58.4 %
Correct Answer
A. 15.8 %Explanation
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.Rate this question:
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Current Version
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Mar 21, 2023Quiz Edited by
ProProfs Editorial Team -
Dec 07, 2013Quiz Created by
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