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B Com Exam  >  B Com Test  >  Macro Economics  >  Test: National Income Determination - B Com MCQ

National Income Determination - Free MCQ Practice Test with solutions,


MCQ Practice Test & Solutions: Test: National Income Determination (10 Questions)

You can prepare effectively for B Com Macro Economics with this dedicated MCQ Practice Test (available with solutions) on the important topic of "Test: National Income Determination". These 10 questions have been designed by the experts with the latest curriculum of B Com 2026, to help you master the concept.

Test Highlights:

  • - Format: Multiple Choice Questions (MCQ)
  • - Duration: 10 minutes
  • - Number of Questions: 10

Sign up on EduRev for free to attempt this test and track your preparation progress.

Test: National Income Determination - Question 1
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What is GNP at market prices?

Detailed Solution: Question 1

GNP at market prices is the gross value of final goods and services produced annually in a country plus net income from abroad. It includes the total output produced in one year multiplied by their market prices.

Test: National Income Determination - Question 2
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What does NNP stand for?

Detailed Solution: Question 2

NNP stands for Net National Product, which is the net value of final goods and services evaluated at market prices in the course of one year in a country.

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Test: National Income Determination - Question 3
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Which component is deducted from GNP at market prices to arrive at GNP at factor cost?

Detailed Solution: Question 3

GNP at factor cost is obtained by deducting indirect taxes from GNP at market prices. It represents the income received by the factors of production for their services alone.

Test: National Income Determination - Question 4
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Which measure of national income excludes undistributed corporate profits?

Detailed Solution: Question 4

Personal income is a measure of national income that excludes undistributed corporate profits along with other deductions like profit taxes and employees' contributions.

Test: National Income Determination - Question 5
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What is the purpose of subsidies in calculating GNP at factor cost?

Detailed Solution: Question 5

Subsidies are granted by the government to reduce the cost of production for producers, helping them match the market price and their production costs.

Test: National Income Determination - Question 6
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What is real income?

Detailed Solution: Question 6

Real income is national income expressed in terms of a general level of prices of a particular year taken as a base. It adjusts for changes in price levels over time.

Test: National Income Determination - Question 7
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What is the difference between disposable income and personal income?

Detailed Solution: Question 7

Personal income differs from private income in that it excludes undistributed corporate profits. It represents the income received by individuals before payment of direct taxes.

Test: National Income Determination - Question 8
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Which method of measurement treats national income as a flow of goods and services?

Detailed Solution: Question 8

The product method treats national income as a flow of goods and services. It calculates the money value of all final goods and services produced in an economy during a year.

Test: National Income Determination - Question 9
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What is the purpose of the Expenditure Method in measuring national income?

Detailed Solution: Question 9

The Expenditure Method sums up private consumption, government consumption, gross capital formation (both government and private), and net exports to measure national income.

Test: National Income Determination - Question 10
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Which component of national income represents the average income of the people of a country?

Detailed Solution: Question 10

Per Capita Income represents the average income of the people of a country in a particular year. It can be measured at current prices or at constant prices to assess the standard of living.

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About this B Com Practice Test

This test contains 10 MCQs on National Income Determination with detailed solutions for each question. It is part of the Macro Economics course on EduRev, designed to align with the current B Com syllabus. Each solution explains not just the correct answer but also gives you an understanding of the topic — not just to attempt the question but also help you prepare for the exam with practice.

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If you found this National Income Determination MCQ Test helpful, you can further enhance your B Com preparation with in-depth courses on EduRev, for all the subjects and topics available in Macro Economics course. The course offers:
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