Household Income

Q.

What are the economic benefits of the cloud?

Q.

Excess of income over Expenditure is termed as ________. (Fill in the blank by choosing the correct option) a) deficit b) profit c) surplus d) loss

Q.

How do you distinguish between old-age pension and retirement pensions in the context of estimation of national income?

Q.

Undistributed profits are considered to be:

1. None of the above

2. Income earned but not received

3. Income received but not earned

4. Income earned and received

Q.

Which of the following items is not included in national income because it is a transfer payment?

1. All of these

2. Repatriation of wages earned by the NRIs to their parents in india

3. Excise duty on domestic production

4. Receipt of birthday gift cheque sent by your parents settles abroad

Q. The difference between national income and domestic income is equal to .

1. NFIA
2. both NFIA and NIT
3. net indirect taxes
4. fixed capital

Q.

Personal income is equal to:

1. Private income + Corporate profit tax - Undistributed profits

2. Private income - Corporate profit tax + Undistributed profits

3. Private income - Corporate profit tax - Undistributed profits

4. Private income + Corporate profit tax + Undistributed profits

Q.

Which of the following is not included in Personal Income?

1. Interest received from saving certificates

2. Dividend payments

3. Social security benefits

4. Undistributed corporate profits

Q.

Transfer payments means:

1. Bank loans

2. The payment without work

3. Tax payments

4. Payment made to all factors of production

Q.

National income includes:

1. Old age pensions

2. Money sent by an NRI to his family in India

3. None of the above

4. Transfer payments from the rest of the world

Q.

Personal disposable income is equal to

1. Personal income + Miscellaneous receipts of government administrative departments

2. Personal income + Direct personal taxes - Miscellaneous receipts of government administrative departments

3. Personal income - Direct personal taxes - Miscellaneous receipts of government administrative departments

4. Private income + Direct taxes

Q.

Financial help to a victim is:

1. Factor income

2. Net factor income from abroad

3. Transfer payment

4. None of the above

Q.

What are the basic two components of personal disposable income?

Q. Define investment. What are the elements of determining the investment ?

Q. The following statements true or false? Give reasons.
National Income is always more than the Domestic Income.

1. True
2. False

Q.

Government transfer payments include:

1. All of the above

2. Social security benefits

3. Welfare benefits

4. Student scholarships

Q. Whether the following items will be included in National Income? Give reasons for your answer.
(i) Purchase of a second hand machine from a domestic firm.
(ii) Interest received on loans taken by government.
(iii) Leave travel allowance paid to employees by a company.
(iv) Direct purchases made by resident households.
(v) Interest received on debentures by debenture-holders.

Q.

Which of the following statements is correct?

1. Personal disposable income includes direct taxes

2. Personal disposable income can be used at will by households

3. Personal disposable income cannot be used at will by households

4. Personal disposable income includes fees and fines yet to be paid

Q. Is it necessary that domestic income is always less than national income?

Q. _______________ expenditure is the expenditure which does not create any physical or financial assets or do not reduce any liability.

1. Revenue
2. Non-plan
3. Plan
4. None of the above

Q. Giving reasons explain how should the following be treated in estimation of national income :
(i) Payment of corporate tax by a firm
(ii) Purchase of machinery by a factory for own use
(iii) Purchase of uniforms for nurses by a hospital

Q. Which of the following schemes has been launched to provide pension to people in unorganised sector in India?

1. Swabhiman
2. Jeevan Dhara
3. Jeevan Kalyan
4. Swavalamban

Q. Personal disposable income is ________.

1. Always more than personal income
2. Equal to personal income minus indirect taxes
3. Equal to personal income minus direct taxes paid by household
4. Always equal to personal income

Q. Explain the methods of calculating National Income

Q. In the government of India's budget for the year 2013-14, the Finance Minister proposed to raise the Goods and Services Tax (GST) on cigarettes. He also proposed to increase income tax on individual earning more than Rupee one crore per annum. Identify and explain the types of taxes proposed by the Finance Minister. Was the objective only to earn revenue for the government? What possible welfare objectives could the Government be considering?

Q. Which of the following factors don't affect the propensity to consume in an economy?

1. Rate of interest
2. Wealth
3. Taxes
4. Consumer credit

Q. High national income is a characteristic of ___________.

1. Underdeveloped economy
2. Developed economy
3. Mixed economy
4. Socialistic economy

Q. According to Andrew Carnegie's "Gospel of Wealth", what should rich people do with their money before they died?

1. Invest it to further their family's wealth.
2. Give it to political parties and favored candidates to protect their financial advantages and interests.
3. Make sure all of it is inherited by children, who will use that advantage to maintain their high standard of living.
4. Give all of their money to churches and charities, in order to directly aid the poor.
5. Give as much of their fortune to institutions that would enrich society and could be used by enterprising individuals to improve their economic standing.

Q. Which of these is not excluded from transfer payment?

1. Rent
2. Interest
3. Royalty
4. Retirement pension

Q. Which of the following is demerit of 'Wealth Definition'?

1. Ignored wealth
2. Too much concentration on welfare
3. Adam Smith and other classical economists concentrated only on material wealth.
4. All of the above