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1.GDP at factor cost is:

a) GDP minus indirect taxes plus subsidies                    

b) GNP minus depreciation allowances

c) NNP plus depreciation allowances                            

d) GDP minus subsidies plus indirect taxes

Ans: A

2.Per Capita Income is derived by dividing National Income by:

a) Total working population                         b)  Total population of the country

c) Volume of the capital used                      d)  Area of the country

Ans: B

3.Which one of the following is development expenditure?

a) Irrigation expenditure                              b) Civil administration  

c) Debt services                                          d) Grant –in –Aid

Ans: A

4.Definition of the Gross Domestic Product (GDP) is given as the value of all:

a) Goods manufactured in an economy in a year

b)  services  and  Goods in an economy in a year

c) End goods manufactured in an economy in a year

d) End goods and services produced in an economy in a year

Ans: D

5.Depreciation is equal to:

a) Personal Income – Personal Taxes

b) Gross National Product – Net National Product

c) Net National Product – Gross National Product

d) Gross National Product – Personal Income

Ans: B

6.Which one of the following is NOT a method of measurement of National Income?

a) Value Added Method                           b) Income Method

c) Expenditure Method                            d) Investment Method

Ans: D

7.Net National Product (NNP) of a country is equal to-

a) GDP minus depreciation allowance    b) GDP plus net income from abroad

c) GNP minus net income from abroad   d) GNP minus depreciation allowances

Ans: D