The 'Gross National Disposable Income' equals GNP at market prices plus: MCQ with Answer and Explanation

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The 'Gross National Disposable Income' equals GNP at market prices plus:

A. depreciation

B. net current transfers from abroad

C. indirect taxes

D. net factor income from abroad

Answer: Option B

Solution (By JKSSB Mock Tests)

Gross National Disposable Income = GNP at market prices + net current transfers from abroad.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The term 'Balance of Trade' refers to:

A. Difference between exports and imports of goods only

B. Overall surplus or deficit in balance of payments

C. Capital account balance

D. Difference between exports and imports of goods and services

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Correct Answer: Option A

Explanation:
Balance of Trade is the difference between the value of exports and imports of merchandise (goods) only. Balance of payments is a broader concept including services and capital flows.

This question belongs to: Economy GK Economy Set 1

Question #2

In an open economy, aggregate demand is given by:

A. C + S + T

B. C + I - G

C. C + I + G + (X - M)

D. I + G + M

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Correct Answer: Option C

Explanation:
In an open economy, aggregate demand is C + I + G + (X - M).

This question belongs to: Economy GK Economy Set 1

Question #3

Transfer payments are excluded from national income because they:

A. do not correspond to current production of goods and services

B. are included in personal income

C. are paid to foreigners

D. are paid in cash

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Correct Answer: Option A

Explanation:
Transfer payments are one-sided payments with no corresponding production of goods or services.

This question belongs to: Economy GK Economy Set 1

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