Free Understanding GDP 02 Practice Test - 12th Grade - Commerce
Question 1
Those goods which satisfy human wants directly are called :
Intermediate goods
Consumer goods
Capital Goods
None of these
SOLUTION
Solution : B
Consumer goods satisfy human wants directly.
Question 2
If a car is purchased by a taxi-operator, it will be regarded as a:
Capital good
Intermediate good
Final good
Both (a) and (c)
SOLUTION
Solution : D
The car will be both a capital and a final good.
Question 3
Market price of the final goods and services (including depreciation) produced within the domestic territory of a country during an accounting year, is called :
GDP at market price
GNP at market price
GDP at factor cost
GNP at factor cost
SOLUTION
Solution : A
GDP refers to the total market value of all goods and services.
Question 4
Household inventory is:
Not included in national income
A stock concept
Both (a) and (b)
None of these
SOLUTION
Solution : C
Household inventory is a stock variable, and it is not included in national income.
Question 5
Which of the following items is not included while estimating national income by income method?
Rent
Mixed income
Fixed investment
Undistributed profits
SOLUTION
Solution : C
Fixed investment is not included in the income method.
Question 6
Own account production of services is not included in national income because:
Services are different from goods
Services are not productive
It is difficult to measure market value of such services
None of these
SOLUTION
Solution : C
Market value cannot be estimated for these services.
Question 7
Which of these economic agents supply labour as a factor of production?
Households
Firms
Central Banks
Governments
SOLUTION
Solution : A
Households supply the input of labour for production
Question 8
To which of the following factors of production does the payment of interest go to?
Land
Labour
Capital
Entrepreneurship
SOLUTION
Solution : C
Capital earns returns in the form of interest.
Question 9
How many methods do we have in order to calculate national income?
2
3
4
5
SOLUTION
Solution : B
We have 3 approaches to calculating national income or GDP.
Question 10
The stock of unsold finished or unfinished goods, and unused raw materials and intermediate goods that a firm carries from one year to another is called
SOLUTION
Solution :The stock of unsold finished or unfinished goods, and unused raw materials and intermediate goods that a firm carries from one year to another is called inventory.