National Income Accounting

Fill in the blank: National income accounting helps in understanding the economic performance of a ______.

• A) Company

• B) Country

• C) City

• D) Individual

Fill in the blank: The income approach to GDP calculation sums up all the incomes earned in the ______.

• A) Public sector

• B) Private sector

• C) Economy

• D) Government

Fill in the blank: GDP per capita is a measure of a country's economic output per ______.

• Household

• Person

• Company

• Region

What is the difference between nominal GDP and real GDP?

• Nominal GDP is adjusted for inflation, real GDP is not

• Real GDP is adjusted for inflation, nominal GDP is not

• Both are adjusted for inflation

• Neither is adjusted for inflation.

What does GDP stand for?

• Gross Domestic Product

• General Domestic Product

• Gross Domestic Price

• General Domestic Price

GDP is the total market value of all final goods and services produced ______ in a country.

• monthly

• annually

• weekly

• daily

How is Gross Domestic Product (GDP) determined?

• By finding the market value for each final good produced and multiplying by the quantity.

• By adding the total number of goods produced.

• By calculating the average price of goods.

• By counting the number of services provided.

What does double counting refer to?

• Counting goods more than once

• Counting goods once

• Not counting goods

• Counting only final goods.

True or False: Any legal transaction that is not recorded can still be counted in GDP.

• True

• False

What does GDP omit?

• Illegal goods and services

• Recorded legal transactions

• Nonmarket goods and services