National Income

Measurement of SOL

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Multiple Choice

What does X represent in calculating net imports?

X-M

• Imports

• Expenditures

• Exports

• None of the Above

Multiple Choice

A higher GDP generally correlates to a(n) ___________ standard of living.

• higher

• lower

• unrelated

Multiple Choice

Expectant parents buy supplies for the nursery. Would this be included in GDP?

• Yes - Consumer Spending

• Yes - Investment

• No - Intermediate goods

• No - Non-market activity

Multiple Choice

What does Per Capita Mean?

• Per Household

• Per Object

• Per Worker

• Per Person

Multiple Choice

GDP per capita is found by dividing a country's GDP by it's

• population.

• average birth rates.

• number of households.

Multiple Choice

Which is an example of investment in human capital?

• trucks

• education

• factories

• highways

Multiple Choice

What is the 1st economic goal of each country?

• Limit Inflation

• Promote Economic Growth

• Limit Unemployment

• Measure expenditures

Multiple Choice

National income does not include_____

• Wages and salaries

• Student scholarship

• Rent and Royalty

• Corporate Tax

Multiple Choice

In a circular flow of income, we have:

• Production

• Distribution

• Disposition

• All above

Multiple Choice

Net national product at factor cost is also known as:

• Net Domestic product

• National Income

• Gross National product

• Personal Income

Multiple Choice

Which of the following is an example of transfer income

• Bonus

• Unemployment allowance

• Compensation from the employer

• All of the above

Multiple Choice

Distributed profits is also known as

• Corporate tax

• Dividend

• Retained earnings

• DA

Multiple Choice

Product method of calculating national income is also known as:

• Income method

• Value added method

• Expenditure method

• Distribution method