CHAPTER 2 - NATIONAL INCOME ACCOUNTING

Which of the following is included in the calculation of national income?

• Increased the value of a house due to inflation

• Prize money of RM15,000 was awarded as sales incentive

• Interest paid to the holder of a government guarantee letter

• The value of accommodation paid by an employer as part of an employee's wages

Derive the best statement referring to a nation's gross domestic product (GDP)

• the market value of intermediate products

• the market value of both final and intermediate products

• the sum of the market value of final products produced and imported

• the total final value created by the factor of production available within a country in a year

The equation for gross domestic product using the expenditure approach is

• GDP = C + I + G + X + M + SC

• GDP = C + I + G + M - X + SC

• GDP = C + I + G + (X + M) + SC

• GDP = C + I + G + (X - M) + SC

Financial assistance and scholarship are the examples of

• national income

• personal income

• transfer payment

• per capita income

One of the problem regarding the calculation of national income is

• inflation

• unemployment

• deficit balance of payments

• double counting

National income data is used for _______________

• analyzing output quality

• measuring unemployment rate

• determining the foreign exchanges rates

• designing economic sector activities

The product value of Japanese firms operating in Malaysia is included in the calculation

• Japan's Gross Domestic Product

• Malaysia's Gross Domestic Product

• Malaysia's Gross Domestic Product and Gross National Product

• Japan's Gross Domestic Product and Gross National Product

Calculate the country's Gross Domestic Product at market price

• RM77,050 million

• RM96,050 million

• RM101,500 million

• RM119,500 million

Compute the country's National Income

• RM59,050 million

• RM68,550 million

• RM79,050 million

• RM88,550 million

The value of subsidies is RM20 million, indirect taxes is RM15 million and gross domestic product at market price is RM200 million. Calculate the gross domestic product at factor cost

• RM201 million

• RM203 million

• RM204million

• RM205 million