Quiz 1 (Part 2)

In the Final Expenditure Approach, what does 'G' represent?

• A. Gross income

• C. Global trade

• B. Government expenditure

• D. Growth rate

 Which sector is NOT included in the Industrial Origin Approach?

• A. Agriculture

• B. Services

• C. Entertainment

• D. Industry

How is the growth rate of GNP calculated?

• A. Present year GNP × Previous year GNP

• B. (Present year GNP - Previous year GNP) ÷ Previous year GNP × 100

• C. Present year GNP ÷ Previous year GNP

• D. Present year GNP + Previous year GNP

Which type of GNP represents the economy's goal for a year?

• A. Actual GNP

• B. Nominal GNP

• C. Real GNP

• D. Potential GNP

What is Capital Consumption Allowance (CCA)?

• A. Employee benefits

• B. Government subsidies

• C. Depreciation fund for new machinery

• D. Tax allowances

                                                                                                                                                                       In the factor income approach, what comprises National Income?

• A. Only employee wages

• B. Only corporate profits

• C. Rent, wages, interest, and profit combined

• D. Government revenue alone

What is the purpose of Statistical Discrepancy (SD) in GNP calculations?

• A. To account for measurement errors

• B. To calculate tax rates

• C. To measure inflation

• D. To track exports

 Which of these is considered a business expenditure?

• A. Personal grocery shopping

• B. Government infrastructure

• C. Investment in office equipment

• D. Household utilities

Why are intermediate goods excluded from GNP calculations?

• A. They are too expensive

• B. To avoid double counting

• C. They are imported goods

• D. They lack market value

What determines if Net Export is positive?

• A. When imports exceed exports

• B. When exports exceed imports

• C. When trade is balanced

• D. When there is no trade