All Courses
Get the App Signup / Login
Sign in Open App
B Com Exam  >  B Com Tests  >  Macro Economics  >  Test: Component of National Income - B Com MCQ

Test: Component of National Income - B Com MCQ


Test Description

10 Questions MCQ Test Macro Economics - Test: Component of National Income

Test: Component of National Income for B Com 2024 is part of Macro Economics preparation. The Test: Component of National Income questions and answers have been prepared according to the B Com exam syllabus.The Test: Component of National Income MCQs are made for B Com 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Component of National Income below.
Solutions of Test: Component of National Income questions in English are available as part of our Macro Economics for B Com & Test: Component of National Income solutions in Hindi for Macro Economics course. Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free. Attempt Test: Component of National Income | 10 questions in 10 minutes | Mock test for B Com preparation | Free important questions MCQ to study Macro Economics for B Com Exam | Download free PDF with solutions
Test: Component of National Income - Question 1
Save

Which of the following methods of calculating GDP ensures that National Product = National Income = National Expenditure?

Detailed Solution for Test: Component of National Income - Question 1
All three methods of calculating GDP—Product Method, Income Method, and Expenditure Method—yield the same result because National Product equals National Income which also equals National Expenditure. These methods provide different perspectives on how GDP can be measured, but they all lead to the same value.
Test: Component of National Income - Question 2
Save

What is Gross Domestic Product (GDP)?

Detailed Solution for Test: Component of National Income - Question 2
Gross Domestic Product (GDP) is the total value of goods and services produced within a country during a specific period, usually a year, and is measured at market prices. It encompasses all final goods and services produced within a country's borders and is a crucial indicator of economic activity.
1 Crore+ students have signed up on EduRev. Have you? Download the App
Test: Component of National Income - Question 3
Save

Which component of National Income includes wages, rent, interest, and profits?

Detailed Solution for Test: Component of National Income - Question 3
GDP at Factor Cost includes the sum of factor incomes, which consist of wages, rent, interest, and profits earned by the factors of production in the economy. This component provides an estimate of the total income generated within the country.
Test: Component of National Income - Question 4
Save
Which method of calculating GDP focuses on goods and services produced within the country during a year?
Detailed Solution for Test: Component of National Income - Question 4
The Expenditure Method of calculating GDP focuses on the total expenditure on goods and services produced within the country during a specific period. It considers consumer expenditure, investments, government spending, exports, and imports to determine the overall economic activity.
Test: Component of National Income - Question 5
Save
What is the GDP Deflator?
Detailed Solution for Test: Component of National Income - Question 5
The GDP Deflator is an index that measures the changes in prices of goods and services included in the Gross Domestic Product (GDP). It's calculated by dividing the Nominal GDP by the Real GDP and multiplying by 100. This index reflects the level of inflation or deflation in an economy.
Test: Component of National Income - Question 6
Save
What is the difference between Nominal GDP and Real GDP?
Detailed Solution for Test: Component of National Income - Question 6
Nominal GDP is calculated based on current market prices, which can be influenced by changes in prices over time (inflation or deflation). Real GDP, on the other hand, is calculated using constant prices from a specific base year, which adjusts for price changes and provides a more accurate measure of economic growth or contraction.
Test: Component of National Income - Question 7
Save
What is Gross National Product (GNP)?
Detailed Solution for Test: Component of National Income - Question 7
Gross National Product (GNP) is the total measure of goods and services produced within a country's borders, including net income earned from abroad. It takes into account the contribution of domestic and foreign factors to the country's economic activity.
Test: Component of National Income - Question 8
Save
Which of the following is NOT included in Gross Value Added?
Detailed Solution for Test: Component of National Income - Question 8
Gross Value Added includes the value of final goods and services produced within an economy. It excludes the value of intermediate products used in production to avoid double counting. Depreciation of capital equipment and net income from abroad are considered in the calculation of Gross Value Added.
Test: Component of National Income - Question 9
Save
Which approach calculates GNP by considering remuneration paid to factors of production annually?
Detailed Solution for Test: Component of National Income - Question 9
The Income Approach to calculating GNP involves summing up the remuneration paid to the factors of production, including wages, rent, interest, and profits. It focuses on the income earned by individuals and firms within the economy.
Test: Component of National Income - Question 10
Save
What does the Value Added Approach to GNP help avoid?
Detailed Solution for Test: Component of National Income - Question 10
The Value Added Approach to calculating GNP helps avoid the problem of double counting by excluding the value of intermediate products. It considers the difference between the value of total output and the value of intermediate purchases, providing a more accurate estimate of the final value added in the economy.
59 videos|61 docs|29 tests
Join Course
Information about Test: Component of National Income Page
In this test you can find the Exam questions for Test: Component of National Income solved & explained in the simplest way possible. Besides giving Questions and answers for Test: Component of National Income, EduRev gives you an ample number of Online tests for practice
59 videos|61 docs|29 tests
Join Course
Download as PDF

Important Questions for Component of National Income

Find all the important questions for Component of National Income at EduRev.Get fully prepared for Component of National Income with EduRev's comprehensive question bank and test resources. Our platform offers a diverse range of question papers covering various topics within the Component of National Income syllabus. Whether you need to review specific subjects or assess your overall readiness, EduRev has you covered. The questions are designed to challenge you and help you gain confidence in tackling the actual exam. Maximize your chances of success by utilizing EduRev's extensive collection of Component of National Income resources.

Component of National Income MCQs with Answers

Prepare for the Component of National Income within the B Com exam with comprehensive MCQs and answers at EduRev. Our platform offers a wide range of practice papers, question papers, and mock tests to familiarize you with the exam pattern and syllabus. Access the best books, study materials, and notes curated by toppers to enhance your preparation. Stay updated with the exam date and receive expert preparation tips and paper analysis. Visit EduRev's official website today and access a wealth of videos and coaching resources to excel in your exam.

Online Tests for Component of National Income Macro Economics

Practice with a wide array of question papers that follow the exam pattern and syllabus. Our platform offers a user-friendly interface, allowing you to track your progress and identify areas for improvement. Access detailed solutions and explanations for each test to enhance your understanding of concepts. With EduRev's Online Tests, you can build confidence, boost your performance, and ace Component of National Income with ease. Join thousands of successful students who have benefited from our trusted online resources.
© EduRev
Education Revolution
Follow Us
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup