CHAPTER 2 : MEASURING NATIONAL INCOME(0723)

Gross Domestic Product (GDP) measures _________________.

• the sum of the market value of both intermediate and final product produced

• the sum of the market value import and export

• the market value of final products produces in the nation during a year.

The total market value of all final good and services produced by the residents of a country during a given of time is the____________________.

• Gross National Product

• Gross Domestic Product

• Net National Product

Which is formula for expenditure method?

• C+I+G+(X-M)

• Rent + Interest + Salary + Employee Provident Fund

• C+I+G+PHYSICAL INCREASE STOCK + (X-M)

GDPfc = GDPmp + ___________ - indirect tax

The uses of national income data include the following concepts, EXCEPT

• to assist the government in national planning

• to avoid the problem of double counting

• to measure the economic growth over time

The problem of double counting in measuring GDP can be avoided by ____________________.

• including the value of intermediate and final goods produced

• include indirect taxes and exclude subsidies

• include in the value of final goods and exclude intermediate goods

Depreciation also known as __________________

• consumption expenditure

• cross consumption

• capital consumption

Have THREE methods to calculate national income, EXCEPT

• Expenditure

• Product

• Foreign Sector

The uses of national income data include the following except

 

• A.   To assist the government in national planning

• B.   To avoid a double-counting problem

• C.   To determine the distribution of income in the economy

• D.   To measure the economic growth over time

Gross Domestic Product (GDP) measured using current year price lndex is called

• B.      Nominal GDP

• C.      Constant GDP

• D.     Deflated GDP