National Income and Related Aggregates MCQ Questions Class 12 :- Welcome guys In another Blog Of Exam Notes Hub today we provide National Income and Related Aggregates MCQ Questions Class 12 and this Questions is important for Your CBSE exam And also MCQ of Introductory Macroeconomics Unit-1 class 12 Is Important for those students who want to crack there CUET Exam so Introductory Macroeconomics Class 12 Unit-1 MCQ is important and we also provide Free PDF of CBSE Introductory Macroeconomics MCQ for Class 12 with Answers Unit-1 National Income and Related Aggregates. Introductory Macroeconomics MCQs for Class 12 Unit-4
National Income and Related Aggregates MCQ Questions Class 12 | Introductory Macroeconomics Class 12 Unit-1 MCQ
Introductory Macroeconomics MCQs for Class 12 , Chapter wise with solutions with free study material is an important notes for students who wants to score good grades in their CBSE Exams . Student can learn Introductory Macroeconomics Class 12 Unit-1 MCQ of Class 12 Introductory Macroeconomics Multiple Choice Questions along with answers to get higher Marks in there Exam so are we provide Top 20 Important Questions For Introductory Macroeconomics Class 12 chapter 1
Introductory Macroeconomics Class 12 Unit-1 MCQ
Question 1. What is the primary focus of macroeconomics?
a) Individual consumer behavior
b) Economic aggregates
c) Microeconomic analysis
d) Market equilibrium
Correct answer: b) Economic aggregates
Explanation: Macroeconomics primarily deals with economic aggregates such as national income, unemployment, business cycles, and inflation, among others.
Question 2. Which of the following is an example of a consumption good?
a) Factory machinery
b) Raw materials
c) Food
d) Land
Correct answer: c) Food
Explanation: Consumption goods are goods and services consumed by individuals and households for personal satisfaction, like food.
Question 3. What are capital goods used for in the economy?
a) Personal consumption
b) Further production of goods and services
c) Investment in stocks
d) Government expenditure
Correct answer: b) Further production of goods and services
Explanation: Capital goods are used by firms for the purpose of producing other goods and services.
Question 4. Which of the following is an example of a final good?
a) Raw materials
b) Machines
c) Cars sold to consumers
d) Semi-finished goods
Correct answer: c) Cars sold to consumers
Explanation: Final goods are ready for use by end-users and do not require further processing, like cars sold directly to consumers.
Question 5. What does “stock” refer to in economics?
a) The flow of income
b) A quantity of a variable measured over time
c) A quantity of a variable measured at a specific point in time
d) Gross investment
Correct answer: c) A quantity of a variable measured at a specific point in time
Explanation: Stock refers to a specific quantity of a variable measured at a particular point in time, like the amount of money in the economy on a specific date.
Question 6. What does “flow” refer to in economics?
a) A quantity of a variable measured at a specific point in time
b) Gross investment
c) A quantity of a variable measured over a period of time
d) The stock market
Correct answer: c) A quantity of a variable measured over a period of time
Explanation: Flow refers to a quantity of a variable measured over a specific period of time, such as disposable income in the economy.
Question 7. What is the definition of gross investment?
a) The total amount of money in the economy
b) Expenditure on new capital goods and inventory stocks
c) The loss in value of assets due to wear and tear
d) The market value of all goods and services produced in a year
Correct answer: b) Expenditure on new capital goods and inventory stocks
Explanation: Gross investment includes expenditure on new capital goods and inventory stocks in a specific period.
Question 8. What does “depreciation” refer to in economics?
a) The increase in the value of assets
b) Loss in the value of assets due to wear and tear
c) The market value of goods and services
d) Gross national product
Correct answer: b) Loss in the value of assets due to wear and tear
Explanation: Depreciation, also known as consumption of fixed capital, refers to the loss in the value of assets due to normal wear and tear.
Question 9. What does the circular flow of income in a two-sector model represent?
a) The flow of goods and services between households and government
b) The continuous flow of money between firms and households
c) The flow of foreign investments in the economy
d) The exchange of goods and services in international trade
Correct answer: b) The continuous flow of money between firms and households
Explanation: The circular flow of income in a two-sector model represents the continuous flow of goods and services, factors of production, and money between firms and households.
Question 10. What does “National Income” refer to?
a) The total income of all individuals in a nation
b) The total value of goods and services produced in a nation
c) The money value of all goods and services produced in a nation in a year
d) The total government revenue in a nation
Correct answer: c) The money value of all goods and services produced in a nation in a year
Explanation: National income represents the money value of all goods and services produced in an economy in a year.
Question 11. Which method measures national income by considering value addition?
a) Total Product or Value Added Method
b) Expenditure Method
c) Income Method
d) Subsidy Method
Correct answer: a) Total Product or Value Added Method
Explanation: The Total Product or Value Added Method measures national income by considering the value addition made by all producing entities in the country.
Question 12. How is Gross Domestic Product at market price (GDPMP) calculated?
a) By deducting indirect taxes from GDPFC
b) By adding subsidies to GDPFC
c) By adding indirect taxes to GDPMP
d) By subtracting subsidies from GDPMP
Correct answer: c) By adding indirect taxes to GDPMP
Explanation: GDPMP is calculated by adding indirect taxes to GDPFC.
Question 13. What is Net Domestic Product at Factor Cost (NDPFC)?
a) GDPFC minus subsidies
b) GDPMP plus indirect taxes
c) GDPFC plus subsidies
d) GDPMP minus indirect taxes
Correct answer: a) GDPFC minus subsidies
Explanation: NDPFC is calculated by deducting subsidies from GDPFC.
Question 14. How is Gross National Product at market price (GNPMP) calculated?
a) By adding net factor income from abroad to GDPMP
b) By deducting net factor income from abroad from GDPMP
c) By adding net factor income from abroad to GDPFC
d) By deducting net factor income from abroad from GDPFC
Correct answer: a) By adding net factor income from abroad to GDPMP
Explanation: GNPMP is calculated by adding net factor income from abroad to GDPMP.
Question 15. What does the GDP deflator measure?
a) The quantity of goods and services produced
b) Average price changes of all goods and services in GDP
c) Inflation rate in an economy
d) Income distribution among households
Correct answer: b) Average price changes of all goods and services in GDP
Explanation: The GDP deflator measures the average price changes of all goods and services that make up GDP.
Question 16. Why is GDP considered an indicator of welfare, and what are its limitations?
a) It accurately measures individual well-being; it has no limitations.
b) It measures the availability of goods and services per person; its limitations include externalities, non-monetary exchanges, composition of GDP, and income inequality.
c) It measures the wealth of a nation; it does not have any limitations.
d) It reflects the happiness of the population; its limitations include only the composition of GDP.
Correct answer: b) It measures the availability of goods and services per person; its limitations include externalities, non-monetary exchanges, composition of GDP, and income inequality.
Explanation: GDP is considered an indicator of welfare as it measures the availability of goods and services per person, but it has limitations such as externalities, non-monetary exchanges, composition of GDP, and income inequality.
Question 17. In macroeconomics, what is the primary focus?
a) Micro-level individual consumer behavior
b) Economic aggregates
c) Market equilibrium
d) Production techniques
Correct answer: b) Economic aggregates
Explanation: Macroeconomics primarily focuses on economic aggregates, such as national income, unemployment, and inflation.
Question 18. What are intermediate goods in the production process?
a) Goods ready for end-user consumption
b) Raw materials and semi-finished goods
c) Capital goods used by firms
d) Final goods in the production process
Correct answer: b) Raw materials and semi-finished goods
Explanation: Intermediate goods are raw materials and semi-finished goods that are still undergoing production processes and have not crossed the production line.
Question 19. How is Real Gross Domestic Product (GDP) calculated?
a) By multiplying the quantity of goods and services by current prices
b) By multiplying the quantity of goods and services by prices of the base year
c) By adding indirect taxes to the GDP at market price
d) By subtracting subsidies from the GDP at factor cost
Correct answer: b) By multiplying the quantity of goods and services by prices of the base year
Explanation: Real GDP is calculated by multiplying the quantity of goods and services produced by the prices of the base year.
Question 20. What does the GDP Deflator measure?
a) Inflation rate in an economy
b) GDP at current market prices
c) Gross Domestic Product (GDP)
d) Average income of households
Correct answer: a) Inflation rate in an economy
Explanation: The GDP deflator measures the average price changes of all goods and services in GDP, making it a useful indicator of inflation in an economy.
Conclusion
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