Economics & National Income

Two sector economy consists of _____ and _____

National income does not include_____

• Wages and salaries

• Rent and Royalty

• Student scholarship

• Corporate Tax

_________ is the market value of goods and services produced in the economy during the period of one year .

GDP is always more than GNP

• True

• False

GNP(MP) = GDP(MP) + ________ :

• Depreciation

• Indirect taxes

• Net factor income from abroad.

• Subsidy

Net national product at factor cost is also known as:

• Net Domestic product

• Gross National product

• National Income

• Personal Income

By deducting undistributed profit from national income , we get,

• personal disposable income

• personal income

• private income

• subsidies

Financial help to a victim is ------------ payment

As a result of double counting , national income is :

• Over estimated

• Under estimated

• Correctly estimated

• Not estimated for the entire year of accounting

Which of the following is not transfer payment

• Interest on national debt

• Retirement pensions

• Old age pensions

• Donations