Quiz National Income

National income is the total value of goods and services produced by a country in a certain period of time, usually during...

• One month

• One years

• Five years

• Ten year

• Two years

What is national income?

• The sum of all government spending in a country

• The sum of all goods and services produced in a country by its citizens

• The total amount of income received by people in a country from factors of production during a year

• The total amount of taxes paid by citizens during the year

• The amount of goods imported and exported by a country

National income is often used as an indicator to measure

• Inflation rate

• The level of economic welfare of a country

• The amount of public spending

• The amount of goods exported

• Increase in the price of goods

Gross Domestic Product (GDP) is calculated by adding up the value of goods and services produced within a country. Which of the following is included in the calculation of GDP?

• Salaries of civil servants

• Transfer payments

• Profits of foreign companies abroad

• Indirect tax

• Company expenditure on investment

The following are components of expenditure in the calculation of National Income. Except

• Expenditure on consumption

• Expenditure on investment

• Net exports

• Rental income

• Goverment expenditure

In the income approach, the calculation of National Income is done by summing up the services of the following factors of production, except

• Wages

• Interest

• Business profit

• Invesment

• Rent

A country's Gross National Product (GNP) takes into account all of the following except

• Goods and services produced by citizens

• Goods and services produced by foreign companies in the country

• Depreciation of capital goods

• Goods and services produced abroad by national

• Transfer payment

One method of calculating National Income is the income approach. In this method, what is calculated is the compensation for factors of production received in the form of

• Consumption, investment, and net exports

• Wages, interest, rent, and profit

• Wages, taxes, and imports

• Consumption, imports, and exports

• Salaries, investment, and exports

Why is it important to calculate a country's national income?

• To determine the level of people's welfare and compare it with other countries

• To calculate the amount of government debt

• To measure the amount of a country's exports

• To determine the currency exchange rate

• To know the amount of production of consumer goods

In the context of national income, the goods that are counted are

• Intermediate goods

• Raw goods

• Finished or final goods

• Consumer and capital goods

• Goods in the production process