Determination of Income and Employment — Economics STD 12 Humanities & Commerce — Question

______ items are those items which do not create a liability or do not lead to reduction in assets.

1. Capital.
2. Development.
3. Non-development.
4. Revenue.

The net values added method of measuring national income is also known as ________.

1. net output method.
2. production method.
3. industry of origin method.
4. all of the above.

Which one of the following statements is incorrect?

1. GDP at market price = GDP at factor cost plus net indirect taxes.
2. NNP at factor cost = NNP at market price minus indirect taxes.
3. GNP at market price = GDP at market price plus net factor income from abroad.
4. None of them.

What is the value of MPC when MPS = 0?

1. 0
2. 4
3. 3
4. 1

Unforseen obsolescence of fixed capital assets during production is:

1. Consumption of fixed capital.
2. Capital loss.
3. Income loss.
4. None of the above.

_______ is the rate which is determined by market forces.

1. Fixed exchange rate
2. Real exchange rate
3. Flexible exchange rate
4. Nominal exchange rate

A large fiscal deficit implies:

1. Very small amount of borrowings.
2. Small amount of borrowings.
3. Large amount of borrowings.
4. No borrowings.

When the government tries to meet the gap of public expenditure and public revenue through borrowing from the banking system, it is called _______.

1. Deficit financing.
2. Debt financing.
3. Credit financing.
4. None of them.

______ capital formation leads to lower rate of GDP growth.

1. Lower.
2. Constant.
3. Higher.
4. None of these.

The central bank can increase availability of credit by:

1. Raising repo rate.
2. Raising reverse repo rate.
3. Buying government securities.
4. Selling government securities.