You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 5 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 points, (0)
Average score
Your score
Categories
Not categorized0%
Your result has been entered into leaderboard
Loading
1
2
3
4
5
Answered
Review
Question 1 of 5
1. Question
2 points
Which of the following is/are the components used to derive Personal Income (PI)?
Net interest payments made by households
Corporate tax
Transfer payments to the households from the government
National Income
Select the correct answer code:
Correct
Personal income refers to all income collectively received by all individuals or households in a country.
Personal income includes compensation from a number of sources, including salaries, wages, and bonuses received from employment or self-employment, dividends and distributions received from investments, rental receipts from real estate investments, and profit sharing from businesses.
Personal Income (PI) = National Income – Undistributed profits – Net interest payments made by households – Corporate tax + Transfer payments to the households from the government and firms.
Incorrect
Personal income refers to all income collectively received by all individuals or households in a country.
Personal income includes compensation from a number of sources, including salaries, wages, and bonuses received from employment or self-employment, dividends and distributions received from investments, rental receipts from real estate investments, and profit sharing from businesses.
Personal Income (PI) = National Income – Undistributed profits – Net interest payments made by households – Corporate tax + Transfer payments to the households from the government and firms.
Question 2 of 5
2. Question
2 points
Consider the following statements regarding Gross Domestic product (GDP).
If the GDP of the country is rising, the welfare will rise as a consequence.
Many activities in an economy are not evaluated in monetary terms and hence, they are not included in calculating GDP.
Which of the above statements is/are correct?
Correct
GDP is the sum total of value of goods and services created within the geographical boundary of a country in a particular year. We may be tempted to treat higher level of GDP of a country as an index of greater well-being of the people of that country.
Incorrect
GDP is the sum total of value of goods and services created within the geographical boundary of a country in a particular year. We may be tempted to treat higher level of GDP of a country as an index of greater well-being of the people of that country.
Question 3 of 5
3. Question
2 points
Which of the following is the correct relation between Factor Price and Market Price?
Correct
Factor Price is total cost of all factors of production (such as labour, capital, land etc) used in producing goods or services. It is the price of the commodity from the producer’s side.
When a commodity is produced, it is sold in the market.
Market Price – It is the price at which a product is sold in the market. It includes the cost of production in the form of wages, rent, interest, input prices, profit etc. It also includes the taxes imposed by the government. It excludes Government subsidy.
Incorrect
Factor Price is total cost of all factors of production (such as labour, capital, land etc) used in producing goods or services. It is the price of the commodity from the producer’s side.
When a commodity is produced, it is sold in the market.
Market Price – It is the price at which a product is sold in the market. It includes the cost of production in the form of wages, rent, interest, input prices, profit etc. It also includes the taxes imposed by the government. It excludes Government subsidy.
Question 4 of 5
4. Question
2 points
Consider the following statements.
GDP can be measured by adding private consumption expenditure, government expenditure, investments made in the economy and net exports.
GDP measures the monetary value of both intermediate and final goods and services.
India’s GDP shrank more than 7% in 2020-21 (in real terms adjusted for inflation), which is the worst performance of the Indian economy in any year since Independence.
Which of the above statements is/are correct?
Correct
Solution: b
Incorrect
Solution: b
Question 5 of 5
5. Question
2 points
Consider the following statements regarding Gross value added (GVA) and Gross domestic product (GDP).
Gross value added is a measure of total output and income in the economy.
GVA is sector specific while GDP is calculated by summation of GVA of all sectors of economy with taxes added and subsidies are deducted.
While GVA gives a picture of the state of economic activity from the consumers’ side or demand perspective, the GDP gives the picture from the producers’ side or supply side.
Which of the above statements is/are correct?
Correct
While GVA gives a picture of the state of economic activity from the producers’ side or supply side, the GDP gives the picture from the consumers’ side or demand perspective. Both measures need not match because of the difference in treatment of net taxes.
Incorrect
While GVA gives a picture of the state of economic activity from the producers’ side or supply side, the GDP gives the picture from the consumers’ side or demand perspective. Both measures need not match because of the difference in treatment of net taxes.
