ECO113

Which of the following best defines National Income?

• Total money supply in a country

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

• Total profits of business firms in an economy

• Total government revenue collected through taxes

Which of the following is NOT a measure of national income?

• Gross Domestic Product (GDP

• Net National Product (NNP)

• Fiscal Deficit

• Gross National Income (GNI)

Which of the following is a key difference between GDP and GNP?

• GDP includes net income from abroad, while GNP does not

• GNP includes net income from abroad, while GDP does not

• GDP and GNP are always equal

• GDP excludes government spending, while GNP includes it

Which of the following is NOT a method for measuring national income?

• Production Method

• Income Method

• Expenditure Method

• Taxation Method

In the expenditure method of calculating GDP, which of the following is NOT included?

• Government spending

• Household consumption

• Transfer payments

• Net exports

Which method of national income measurement calculates income earned by individuals and businesses?

• Production Method

• Income Method

• Expenditure Method

• Consumption Method

Which of the following is NOT a use of national income data?

• Measuring economic growth

• Comparing living standards across countries

• Determining the price of stock market shares

• Formulating government policies

Which of the following is a major difficulty in measuring national income in developing countries?

• Large informal economy

• High level of industrialization

• Easy availability of statistical data

• Low population growth

Which type of economic activity is difficult to include in national income calculation?

• Government spending

• Agricultural production

• Underground economy and illegal activities

• Export and import transactions

Which of the following creates a challenge in measuring national income accurately?

• Inflation and price fluctuations

• Perfect record-keeping of all transactions

• Efficient taxation system

• Standardized measurement methods