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This a MCQ (Multiple Choice Question) based practice test of Chapter 2 - National Income Accounting of Economics of Class XII (12) for the quick revision/preparation of School Board examinations
Q Explain the meaning of non-market activities
Non market Activities -
1) Non market activities are those activities primarily undertaken for the purpose of self-consumption. These activities don't give profit as they are for self consumption.
2) The output of the non market activities is neither for sale in the market nor for earning profit. These activities can be for consumption and processing of primary products for one's own use.
3) Example : A farmer cultivates primarily for himself and his family and not for earning profit.
Nominal GNP is same as
GNP Deflator: It is clear that nominal GNP usually exceeds real GNP because of inflation. Greater the difference between nominal and real GNP, greater is the inflation. It may happen that GNP data at constant prices may not be available in the economy.
Real flow is the flow of
Real flow is the exchange of goods and services between household and firms whereas money flow is the monetary exchange between two sectors. In real flow household sector supplies raw material, land, labour, capital and enterprise to firms and in return firms sector provides finished goods and services to household sector. Whereas in money flow, firm sector gives remuneration in the form of money to household sector a wages and salaries, rent, interest etc.
Money flow is the flow of
Inflow and Outflow of Money is called Money Flow. It includes factor payment and factor receipt.
Which of the following in an example of macro economics
Inflation means roaming of money that goes from one hand to other as macro economics deals with whole economy the money in this form passes from one hand to another.
Microeconomics is different from macroeconomic s as