Question # 1

Equilibrium level of national income means that point where

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Consumption = saving

Consumption = investment

Income = saving + investment

Saving = Investment

national income is found by

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Subtracting depreciation allowance from gross national product

Subtracting indirect taxes from net national product

Adding subsidies in net national product

Subtracting indirect taxes and adding subsidies in net national product

The term "Price Taker" is used in:

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Perfect competition

Oliogopoly

Monopoly

Monopsony

What is deducted from the GNP to get GDP

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Depreciation allowances

Net income received from abroad

Indirect tax

Transnfer payments

In the long run firms mostly earn normal profit in:

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Perfect competition

Oliogopoly

Monopoly

Duopoly

Expenditures of repair of machines are called

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Unproductive expenditures

Productive expenditures

Rewards

Depreciation allowance

National income increases by

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The increase in the quantity of capital goods

The increase in the quantity of goods and services

The increase in price of goods

The increase in the income of entrepreneurs

Method of measuring national income

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National income=Gross national product - depreciation allowance

National income= Net national product - Indirect costs

National income= Net national product + subsidies

National income= Net national product - indirect taxes + subsidies

What remains after the deduction of direct tax from the personal income

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NNP

NNI

DPI

GNP

A firm suffers abnormal losse, when:

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AC = AR

AVC = AR

AVC < AR

AVC > AR

According to professor Ackley Gardener, amounts are included in national income

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Wages

Rents and interests

Profits

All the three

National income is total of

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Incomes of all entrepreneurs of the country

Incomes of all industrialists of the country

Incomes of all salaried persons of the country

Incomes of all the people of the country

Difference between total revenue and total cost presents:

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Price

Profit

Production

Loss

A firm gains abnormal profit, when:

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TR = TC

TR > TC

TR < TC

MC = MR

To measure national income is used

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Product method

Incomes of the factor method

Expenditure method

All the three

A firm is in equilibrium, where:

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AR = MR

AC = MC

AC = MR

MC = MR

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Principles of Economics Icom Part 1 English Medium Chapter 9 Online Test MCQs With Answers

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