Quiz 2

What is the definition of National Income?

• Total payment received by factors of production in a country during a year.

• Total money value of all final goods and services produced within a country.

• Total market value of all final goods and services produced by a country's residents.

• Total income received by individuals and households in a nation.

Which of the following is NOT a method of measuring National Income?

• Income Approach

• Market Approach

• Expenditure Approach

• Product Approach

What does GDP stand for?

• Gross Development Product

• General Domestic Product

• Gross Domestic Product

• General Development Product

What is the formula for calculating Real Income?

• Base year index x Current Nominal GNP / Current price index

• Current price index / Base year index x Current Nominal GNP

• Current Nominal GNP / Base year index

• Base year index / Current price index x Current Nominal GNP

What is the purpose of calculating National Income?

• To calculate inflation rates

• To determine the population size

• To measure the standard of living

• To assess government spending

Which of the following is included in the Expenditure Approach?

• Rent

• Wages and Salaries

• Interest and Dividends

• Consumption

What does NNP stand for?

• Nominal National Product

• Net National Product

• Net Nominal Product

• National Net Product

What is Disposable Personal Income?

• Income before taxes

• Income from investments

• Income after personal direct taxes

• Total income received by individuals

Which of the following is a problem in calculating National Income?

• Problem of accurate taxation

• Problem of double counting

• Problem of advanced technology

• Problem of high literacy rates

What is Per Capita Income?

• Average income of businesses

• Income of the richest individuals

• Total income of a nation

• National Income divided by population