National Income

1. National income is the                                          

• A. difference between income from abroad and payment to foreigners

• B. GDP minus depreciation.

• C. GDP plus net factor income from abroad.

• D. total value of all goods and services.

2. Which of the following, will increase the nominal value of national income?                                    

• A. High rate of inflation

• B. Increase in the value of money

• C. increase in import

• D. High rate of subsistence production

3. Government revenue will increase if taxes are levied on goods with                                                    

• A. Perfectly elastic demand

• B. Fairly elastic demand

• C. Perfectly inelastic demand

• D. Unitary elastic demand

4. In national income accounting, the term ‘net’ is used to indicate that a value                                        

• A. includes income of foreigners

• B. excludes income of citizens

• C. includes depreciation

• D. excludes depreciation

5. The formula Y = C+I+G+(X-M) will be appropriate for measuring national income using the        

• A. income approach

• B. expenditure approach

• C. output approach

• D. factor approach

What is the name of your teacher today?

• Meg Dapper

• Dumle Lenata

• Dunle Lenata

• Igwe Monday