IOME

1. Which of the following is a part of the Gross National Product (GNP)?

• 1. Exports

• 1. Money earned by a resident abroad

• 1. Imports

• 2. All of the above

1. The net value of Gross Domestic Product after deducting depreciation from it is _______.

• 1. Net Domestic Product

• 1. Net National Product

• 1. Disposable Income

• 1. Gross National Product

1. The average income of a country is known as _________.

• 1. Real National Income

• 1. Per Capita Income

• 1. Disposable Income

• 1. None of the above

1. Which of the following is not a part of National Income?

• 1. Undistributed profit

• 1. The payments made by the household to the firm for purchasing goods and services

• 1. Income from government expenditure

• 1. Interest on the unproductive national debt

1. Which of the following is added in calculating Gross Domestic Product?

• 1. A teacher teaching their child

• 1. The value of resale of old shares

• 1. An artisan constructing a new house

• 1. None of the above

1. Which of the following is not a part of Gross Domestic Product?

• 1. Life expectancyLife expectancy

• 1. Public education

• 1. National defence

• 1. None of the above

Which of the following would cause the value of a nation's GDP to increase in a given year?

• An increase in the sale of illegal goods in economy

• Household spend more on domestic air travel

• Increase in the sale of used cars

• Increase on volenteer work

Why does the measurement of a country's GDP not include the value of all intermediate goods used in the production of a finished good?

• Because the value of intermediate goods would be under-counted, and GDP would appear much smaller than it actually is

• Because the value of intermediate goods would be over-counted, and GDP would appear much smaller than it actually is

• Because intermediate goods aren't always produced within a country's borders, so we cannot count them towards the country's GDP

• Because the value of intermediate goods would be over-counted, and GDP would appear much larger than it actually is

A change in which of the following will have no effect on the country's GDP?

• Consumption

• Government spending

• Investment

• Net Exports

• Stocks

Which of the following describes the amount of new capital that is added to an economy?

• 
  Stock of capital

• Investment

• Gross investment

• Net investment