Unit I- Chapter 2-National Income Accounting

In GNP calculation which of the following should be excluded?

• Rental incomes
• Interest payments
• Dividends
• Government transfer payment

Net national product at factor cost is also known as:

• Net Domestic product
• Gross National product
• National Income
• Personal Income

National Income doesn’t include:

• Interest on unproductive national debt
• Income for government expenditure
• The payments by the household to firm for the purchase of goods and services
• Undistributed profit

Product method of calculating national income is also known as

• Income method
• Value added method
• Expenditure method
• Distribution method

Transfer payments refer to payments, which are made:

• Without any exchange of goods and services
• To workers on transfer from one job to another
• As compensation to employees
• None of the above

Real GDP is obtained by

• Nominal GDP minus GDP deflator.
• Nominal GDP divided by CPI.
• Nominal GDP divided by GDP deflator.
• Nominal GDP multiplied by price level.

The nominal interest rate is equal to

• real interest rate / inflation rate.
• real interest rate × inflation rate.
• real interest rate + inflation rate.
• real interest rate – inflation rate.

Which of the following is not a government transfer?

• public pensions
• government spending on education
• welfare payments
• unemployment insurance benefits

Mobin and Mona just bought their new house. In the national income accounting, this transaction is considered as

• consumption on durable goods.
• inventory investment.
• consumption on semi-durable goods.
• fixed cost

In using the expenditure approach to GDP, consumption

• includes consumer durables, semidurables, nondurable goods, but excludes services.
• includes consumers spending on durable goods, and nondurable goods, and services.
• includes houses and services.
• includes houses and all purchases by business firms.