National Income Concepts Quiz

Gross National Product (GNP) less the provision for the wear and tear of assets is the

• • net factor income

• • net indirect taxes

• • net national product

• • net present value

An example of transfer payments in national income accounting is

• • money transferred to another country

• • unemployment allowance paid to the citizens

• • transfer of funds from one bank to another

• • the amount paid to a worker on transfer

The standard of living in two countries can be compared using the___________

• • number of industries in each country

• • size of their arms and ammunition

• • size of their national incomes only

• • gross national product per head

Use this data below to answer the question

The following data relates to the national income of a country.
Gross domestic product = $2800
Net factor income from abroad = $250
Depreciation = $700
Indirect taxes = $120

What is the country's Gross National (GNP)?

• $ 3.150

• • $ 3.680

• • C. $ 3,050

• • D. $3,040

Use this data below to answer the question

The following data relates to the national income of a country.
Gross domestic product = $2800
Net factor income from abroad = $250
Depreciation = $700
Indirect taxes = $120

What is the country's Net National Product (NNP) at factor cost?

• • $2.350

• • $2,680

• • $2.220

• • $2,230

How is NNP at factor cost derived from GNP at market prices? 

• • GNP - Depreciation - Indirect taxes + Subsidies

• • GNP - Depreciation + Indirect taxes + Subsidies

• • GNP + Depreciation -Indirect taxes - Subsidies

• • GNP+ Depreciation- Indirect taxes + Subsidies