CAF ECO CH-6 DETERMINATION OF NATIONAL INCOME

Which of the following is NOT a component of Gross Domestic Product (GDP)?

• Consumption

• Investment

• Government Spending

• Imports

Which of the following is the correct formula for calculating Gross Domestic Product (GDP)?

• GDP = Consumption + Investment + Government Spending

• GDP = Consumption + Investment + Government Spending + Exports - Imports

• GDP = Consumption + Investment + Net Exports

• GDP = Consumption + Investment + Government Spending + Exports

Which of the following is a measure of a country's Gross National Product (GNP)?

• The total value of all goods and services produced within a country's borders in a specific period

• The total value of all goods and services produced by a country's residents, both domestically and abroad, in a specific period.

• The total value of all goods and services sold by a country to other countries in a specific period

• The total value of all goods and services produced by a country's domestic companies in a specific period.

National Income estimates are essential for:

• Calculating government debt

• Evaluating the overall health of the financial sector

• Measuring the economic growth and development of a country

• Determining the inflation rate

The Gross Domestic Product (GDP) per capita is used to:

• Measure the overall size of the economy

• Determine the average income of a country's citizens

• Calculate the total value of exports and imports

• Analyze the distribution of wealth in a nation

Gross Domestic Product (GDP) measures:

• The total value of goods and services produced within a country's borders, including net income from abroad.

• The total value of goods and services produced by a country's residents, regardless of their location

• The total value of goods and services produced within a country's borders, excluding net income from abroad.

• The total value of goods and services consumed within a country's borders.

Gross Domestic Product (GDP) is defined as the total:

• Income earned by a country's residents, regardless of their location

• Value of goods and services produced within a country's borders

• Income earned by foreign residents within the country

• Value of goods and services produced by a country's residents abroad

In a country, the nominal GDP for the year 2022 is Rs.800 billion, and the GDP deflator for 2022 is 120.0. What is the real GDP for 2022?

• Rs.480 billion

• Rs.666.67 billion

• Rs.666.00 billion

• Rs.960 billion

The nominal GDP of a country in the base year was Rs.500 billion, and the real GDP in the same year was Rs.450 billion. Calculate the GDP deflator for the base year.

• 90.0

• 100.0

• 110.0

• 125.0

In the current year, the nominal GDP of the country is Rs.600 billion, and the real GDP is Rs.540 billion. Calculate the GDP deflator for the current year using the base year's GDP deflator (which is 100.0).

• 90.0

• 100.0

• 110.0

• 125.0