Q. Which of the following is irrelevant in the estimation of compensation of employees? Free accommodation provided to the school principlesFree education of the students whose parents are working in schoolsWages and salaries in cashOld age pensions Answer: Old age pensions

Q. Which of the following is not included in inventory investment? Change in the stock of finished goodsChange in the stock of semi-finished goodsChange in the stock of raw materialChange in sales during the year Answer: Change in sales during the year

Q. Compensation of employees includes: wages and salaries in cashwages and salaries in kindpension on retirementall of these Answer: all of these

Q. Increase in the price of commodities due to an increase in taxes assumes relevance in the estimation of NNP at MP because: taxes are compulsory paymentstaxes are trAnswer:fer paymentstaxes are paid out of the income of the householdstaxes cause a rise in the market price of the commodities ...

Q. Difference between closing stock and opening stock during an accounting year is known as: increase in stockchange in stockdecrease in stockNone of these Answer: change in stock

Q. Which of the following items is not included while estimating the GNP of a country at market price? Sales of the enterprisesIndirect taxesRemittances by NRIsSubsidy Answer: Remittances by NRIs

Q. Own account production of services is not included in national income because: services are different from goodsservices are not productiveit is difficult to measure the market value of such servicesNone of these Answer: it is difficult to measure the market value of such services

Q. As a result of double counting, national income is: over-estimatedUnder-estimatedcorrectly estimatednot estimated for the entire year of accounting Answer: over-estimated

Q. Which of the following is not an element of final consumption expenditure? Household expenditure on foodGovernment final consumption expenditureHousehold expenditure on educationExpenditure on raw material Answer: Expenditure on raw material

Q. Which of the following items is not included while estimating national income by the Income method? RentMixed incomeFixed investmentUndistributed profits Answer: Fixed investment