Depreciation

Q.

State the two principal differences between GDP at current prices and GDP at constant prices.

Q.

What do you mean by the error of double counting?

Q.

What Is Gross Domestic Product GDP? How Is It Measured?

Q.

Choose the most appropriate answer. GDP is the total value of _________ produced during a particular year

1. all goods and services

2. all final goods and services

3. all intermediate goods and services

4. all intermediate and final goods and services

Q.

Depreciation of fixed capital assets refers to :

1. Normal wear and tear

2. Foreseen obsolescence

3. Unforeseen obsolescence

4. Both A and B

Q.

To avoid double counting when GDP is estimated, economists:

1. Use GDP deflator

2. Calculate value added at each stage of production

3. Use price of only intermediate goods

4. Use retail prices

Q.

Is government budget a statement of government receipts and expenditure over the past year?

Q.

As a result of double counting, national income is:

1. under-estimated

2. over-estimated

3. correctly-estimated

4. not estimated for the entire year of accounting

Q. What is Per capita Income?

Q.

Depreciation of fixed capital assets refers to

Q. In which currency the per capita incomes of countries are calculated?

1. Dollar
2. Yen
3. Pound
4. Rupees

Q.

How to Depreciate Fixed Assets?

Q. ______ studies the problem of inflation in the country.

1. Microeconomics
2. Macroeconomics
3. Static economics
4. Industrial economics

Q. Unforeseen obsolescence of fixed capital assets during production is ________________.

1. Consumption of Fixed Capital
2. Capital Loss
3. Income Loss
4. None of the above

Q. Depreciation of fixed capital assets refers to _______________.

1. Normal wear and tear
2. Foreseen obsolescence
3. Normal wear & tear & foreseen obsolescence
4. Unforeseen obsolescence

Q. Gross investment can be equal to net investment.

1. True
2. False

Q. Depreciation is a measure of the wearing out, consumption or other loss of value of a depreciable asset arising from -
I. Use
II. Efflux of time
III. Obsolescence through technology and market changes
Select the correct answer from the options given below:

1. I & II
2. II & III
3. I & III
4. Any of the above

Q. _______ refers to wear and tear of capital assets.

1. National domestic product
2. Depreciation
3. Gross domestic product
4. Appreciation

Q. Depreciation is charged only on fixed asset.

1. true
2. false

Q. a) The balance of payments account of a country is constructed on the principle of double entry book-keeping
b) In balance of payment accounting, debits are shown on the left side and credits on the right side of the balance sheet
Of these :

1. Both (a) and (b) are true
2. (a) is true, but (b) is false
3. (a) is false, but (b) is true
4. Both (a) and (b) are false

Q.

Decrease in an assets value caused by unfavorable market conditions is called _________.

1. depreciation
2. both A and B
3. appreciation
4. none of the above.

Q.

What depreciation method is used for buildings?

Q. In Internal reconstruction, the amount sacrificed by shareholders are credited to ______________.

1. Capital Reserve account
2. General Reserve account
3. Capital Reduction account
4. Contingency Reserve account

Q. Calculate autonomous consumption expenditure from the following data about an economy which is in equilibrium
National income = 1200
MPS = 0.20
INVESTMENT EXPENDITURE= 100

Q. Depreciation means ___________________.

1. Destruction of a plant in a fire accident
2. Closure of the plant due to lockout
3. Loss of fixed assets overtime due to wear and tear
4. Loss of fixed assets in an earthquake

Q.

Difference between Gross National Product and Depreciation gives _________.

1. GNP (Gross National Product)
2. NNP (Net National Product)
3. GDP (Gross Domestic Product)
4. None of the above

Q. The theory of income determination is the core of macroeconomics.

1. True
2. False