PGT (Commerce previous year questions) (HTET) (Part – VI)

Total Questions: 100

31. The total income earned in any given year by the owners of productive resources is measured by:

Correct Answer: D. National Income

32. In calculating a country's GNP at market prices one of the following is not included:

Correct Answer: D. Depreciation allowances

33. An example of double counting in national income would be:

Correct Answer: B. Cotton output and cotton cloth output

34. Double counting must be avoided when calculating national income. This means that there must be a deduction of the value of:

Correct Answer: C. Transfer payments

35. Which of the following is counted in determining GNP?

Correct Answer: C. An operation performed in a hospital

36. Among these statements which one clearly explains the meaning of "Subsidies"?

Correct Answer: D. Payment by Government to business enterprises without buying any goods and services

37. The difference between Gross National Product and Gross Domestic Product is equal to:

Correct Answer: D. Net factor income from abroad

38. Net domestic product at factor cost equals net domestic product at market prices:

Correct Answer: A. Plus subsidies - indirect taxes

39. When gross investment is positive, net investment:

Correct Answer: D. can be either positive or negative

40. National product is not affected by which of the following?

Correct Answer: A. Sale of a second hand automobile by A to B