National Income and Economic Growth

GDP stands for

• Grand Domestic Produce

• Gross Domestic Produce

• Gross Domestic Product

• Grand Domain Product

National income can be measured in

• 3 ways

• 4 ways

• 2 ways

• 1 way

The national income can be measured by the expenditure method which involves the sum of the following expenditures:

• C + I + X + M + G

• C + I + G + (X-M)

• C + I + (X-M)

• C + I + G + (M-X)

S + T + M > I + G + X means that the national income will

• Fall

• Increase

• Stay the same

S + T + M < I + G + X means that the national income will

• Stay the same

• Increase

• Decrease

If the national income increases from one year to another then economic growth occurs

• True

• False

National Income can also be measured by adding up the total amount of outputs produced in an economy

• True

• False

National income is equivalent to GDP

• True

• False

In Australia, what is the proportion of consumption (C) in national income?

• 40%

• 50%

• 60%

• 20%

In Australia, what is the proportion of investment (I) in national income?

• 20%

• 10%

• 5%

• 40%