We measure national income by this method ?

Related Mcqs:

1. Gross National income is always more than Net National income because it includes ?

   A. Foreign income
   B. Capital consumption allowance
   C. Indirect taxes
   D. Direct taxes

2. The World Bank’s GNP per capita classification for low income middle income and high income countries respectively is ?

   A. less than $900, $900-$9000 and more than $9000
   B. less than $5000, $5000-$15000 and more than $15000
   C. less than $100, $100-$1000 and more than $1000
   D. less than $5000, $5000-$150000 and more than $150000

3. A tax for which high income taxpayers pay a smaller fraction of their income than do low income taxpayers is known as ?

   A. a proportional tax
   B. a regressive tax
   C. an equitable tax
   D. a progressive tax

4. If the income tax rate changes from 30% to 40% on income over Rs30,000 and a person’s income is Rs 31,000 then her marginal tax rate is ?

   A. 30%
   B. 10%
   C. 70%
   D. 40%

5. The functional distribution of income shows how national income is divided between ?

   A. employees
   B. the population
   C. the factors of production
   D. the working population

6. Indices of income distribution measure ?

   A. absolute poverty
   B. economic growth
   C. relative poverty
   D. standard of living

7. Within the circular flow of income, an increase in domestic income will tend to increase ?

   A. exports
   B. taxes
   C. inventories
   D. imports

8. A tax whose burden expressed as a percentage of income, falls as income increases is a ?

   A. benefits received tax
   B. progressive tax
   C. regressive tax
   D. proportional tax

9. Because people’s income vary other the life cycle and because there are transitory shocks to people’s incomes the standard measures of income distribution ?

   A. exaggerate the inequality of living standards
   B. could exaggerate or understate the inequality of living standards depending on whether the transitory shocks are positive or negative
   C. understate the inequality of living standards
   D. accurately represent the true inequality of living standards

10. A progressive income tax means that those with a higher income pay ?

    A. a higher percentage of their income in taxes then low income people
    B. a lower percentage of their income in taxes than low income people
    C. the same percentage of their income in taxes as low income people all the taxes in the economy.
    D. all the taxes in the economy