National Income Quiz

Which of the following best defines National Income?

• Total money supply in the country

• Total value of goods and services produced within a country in a given period

• Total taxes collected by the government

• The amount of money earned by all citizens

Which concept of National Income includes income earned by residents of a country both within and outside its borders?

• Gross Domestic Product (GDP)

• Net Domestic Product (NDP)

• Gross National Product (GNP)

• Disposable Personal Income

The difference between GNP and GDP is due to:

• Capital depreciation

• Government spending

• Net Factor Income from Abroad (NFIA)

• Net indirect taxes

Which of the following is not included in National Income?

• Wages and salaries

• Transfer payments

• Rent received from land

• Profits from businesses

Which is a major component of National Income?

• Consumption Expenditure

• Transfer Payments

• Black Money

• Illegal Transactions

Why is National Income an important economic indicator?

• It measures employment levels

• It shows the economic strength of a country

• It helps in policy-making

• All of the above

Which is not a method of measuring National Income?

• Taxation Method

• Income Method

• Expenditure Method

• Production Method

The method of measuring national income that sums all factor earnings is known as:

• Expenditure Method

• Income Method

• Production Method

• Value-Added Method

Which formula is used in the Expenditure Method of measuring National Income?

• C + I + G + (X - M)

• C + I + W

• P × Q

• R + W + I + P

Which of the following is deducted from GDP to calculate Green GDP?

• Taxes on production

• Environmental degradation costs

• Foreign investments

• Government expenditures