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Chapter 19 of 19
Practice Quiz

Measurement Of National Income

ICSE · Class 12 · Economics

Practice quiz for Measurement Of National Income — ICSE Class 12 Economics. MCQs and questions with answers to test your preparation.

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Quick Quiz: Measurement Of National Income

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1

A hypothetical economy has two firms. Firm A has sales of ₹300 lakh, purchases from Firm B of ₹100 lakh, imports of raw material of ₹50 lakh, opening stock of ₹25 lakh, and closing stock of ₹40 lakh. What is the value added by Firm A?

2

Firm B has sales of ₹250 lakh, purchases from Firm A of ₹80 lakh, imports of raw material of ₹20 lakh, opening stock of ₹10 lakh, and closing stock of ₹15 lakh. What is the value added by Firm B?

3

An economy has only two firms. Firm A has value added of ₹55 lakh, and Firm B has value added of ₹130 lakh. Net indirect taxes paid by both firms are ₹30 lakh. What is GDP at factor cost?

4

A firm has value of output of ₹2,700 thousand, intermediate consumption of ₹560 thousand, depreciation of ₹100 thousand, and net indirect taxes of ₹60 thousand. What is its net value added at factor cost?

66 Questions·
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Sample Questions

1multiple choice
3 marks

A firm has sales of ₹2,000 thousand, exports of ₹500 thousand, and change in stock of ₹200 thousand. Its purchase of raw materials is ₹560 thousand and its depreciation is ₹100 thousand. What is its net value added at factor cost?

Show answer

₹1,980 thousand

Value of output = domestic sales + exports + change in stock = 2,000 + 500 + 200 = ₹2,700 thousand. Gross value added at market price = 2,700 - 560 = ₹2,140 thousand. Net value added at factor cost = 2,140 - 100 - 60 = ₹1,980 thousand.

2multiple choice
3 marks

An economy has compensation of employees of ₹300 crore, rent of ₹120 crore, interest of ₹15 crore, profit of ₹45 crore, mixed income of ₹360 crore, and net factor income from abroad of ₹30 crore. What is national income?

Show answer

₹870 crore

Domestic income = 300 + 120 + 15 + 45 + 360 = ₹840 crore. National income = domestic income + NFIA = 840 + 30 = ₹870 crore.

3multiple choice
3 marks

A country has GDP at market price of ₹1,240 crore, depreciation of ₹50 crore, net indirect taxes of ₹30 crore, and net factor income from abroad of ₹(-10) crore. What is national income?

Show answer

₹1,150 crore

National income = GDP at market price - depreciation - net indirect taxes + NFIA = 1,240 - 50 - 30 - 10 = ₹1,150 crore.

4multiple choice
3 marks

Private final consumption expenditure is ₹700 crore, government final consumption expenditure is ₹250 crore, gross domestic capital formation is ₹220 crore, net exports are ₹70 crore, depreciation is ₹50 crore, net indirect taxes are ₹30 crore, and net factor income from abroad is ₹(-10) crore. What

Show answer

₹1,150 crore

GDP at market price = 700 + 250 + 220 + 70 = ₹1,240 crore. National income = 1,240 - 50 - 30 - 10 = ₹1,150 crore.

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Measurement Of National Income covers several key topics that are frequently asked in ICSE Class 12 board exams. Focus on the core concepts listed on this page and practise related questions to build confidence.
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Understand the core concepts first, then work through the 66 practice questions available for this chapter. Revise formulas and definitions regularly, and use flashcards for quick recall before the exam.

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