NATIONAL INCOME ACCOUNTING

1.How many approaches in calculating national income?

• 4

• 3

• 2

• 1

4. The national income is

• a. NNP at factor cost

• b. NNP at market price

• c. GNP at market price

• d. GNP at factor cost

5.The value of the output of all goods and services produced within a country in a year.

• total output

• Gross Domestic Product

• national income

• net domestic product

6.When a nation's exports exceed its imports and is calculated as exports - imports

• trade surplus

• trade deficit

• inventory

• gross domestic product

7.When a nation's imports exceed its exports and is calculated as imports -exports

• inventory

• gross domestic product

• trade surplus

• trade deficit

In a circular flow of income in a closed economy with government intervention, leakage consists of _________________.

• Investment and savings

• Savings only

• Savings and taxes

• Savings, taxes and imports

Which of the following is considered to be an investment in the national income accounts?

• Increases in inventories of unsold goods

• Money deposited in a bank

• Purchases of land

• Purchases of Treasury bills

National production means goods and services produced within the borders of a nation during a specified period.

• TRUE

• FALSE

In order to calculate national production value, GDP values the goods based on the market price.

• TRUE

• FALSE

Net national product does not include_______________.

• Interest on consumer loans

• Undistributed corporate profit

• Taxes on corporate profits

• Depreciation