National Income Accounting Quiz

A country's gross national product (GNP) is

• the value of all final goods and services produced by its factors of production and sold on the market in a given time period.

• the value of all intermediate goods and services produced by its factors of production and sold on the market in a given time period.

• the value of all final goods produced by its factors of production and sold on the market in a given time period.

• the value of all final goods and services produced by its factors of production and sold on the market.

• the value of all final goods and services produced by its factors of production, excluding land, and sold on the market in a given time period.

For most macroeconomists

• national income accounts and national output accounts are equal to each other.

• national income accounts exceed national output accounts.

• national output accounts exceed national income accounts.

• it is impossible to tell whether national income accounts equal to national output accounts.

• national income accounts is much more important than national output accounts.

For most macroeconomists

• gross national income and gross national product are the same.

• gross national income exceeds gross national product.

• gross national product exceeds gross national product.

• it is hard to tell whether gross national income equal gross national product.

• gross national product is much more important than gross national income.

The highest component of GNP is

• the current account.

• investment.

• government purchases.

• consumption.

• trade.

An example of how GNP accounts for services provided by foreign-owned capital (and GDP does not) is

• earnings of a Spanish factory with British owners counts only in Spain's GDP.

• earnings of a Spanish factory with British owners counts only in Britain's GNP.

• earnings of a Spanish factory counts in Spain's GNP but are part of Britain's GDP.

• earnings of a Spanish factory counts in Spain's GDP but are part of Britain's GNP.

• earnings of a Spanish factory counts in Spain's GNP but not in Britain's GDP or GNP.

The sale of

• a used textbook does enter GNP.

• a used textbook does not enter GNP, but the sale of a used house does.

• both a used textbook and a used house do not enter GNP.

• a used house does not enter GNP, but the sale of a used book does.

• the GNP does not include sale of used items priced below $1000.

Which one of the following statements is the MOST accurate?

• The sale of a used textbook does generate income for factors of production.

• The sale of a used textbook does not generate income for any factor of production.

• The sale of a used textbook sometimes does and sometimes does not generate income for factors of production.

• It is hard to tell whether a sale of a used textbook does or does not generate income for factors of production.

• The sale of a used textbook is a part of the GNP.

Which one of the following statements is the MOST accurate?

• GNP plus depreciation is called net national product (NNP).

• GNP less depreciation is called net national product (NNP).

• GNP less depreciation is called net factor product (NFP).

• GDP plus depreciation is called net national product (NNP).

• GDP less depreciation is called net national product (NNP).

National income equals GNP

• less depreciation, less net unilateral transfers, less indirect business taxes.

• less depreciation, plus net unilateral transfers, plus indirect business taxes.

• less depreciation, less net unilateral transfers, plus indirect business taxes.

• plus depreciation, plus net unilateral transfers, less indirect business taxes.

• less depreciation, plus net unilateral transfers, less indirect business taxes.

The United States began to report its gross domestic product (GDP) only since

• 1900.

• 1921.

• 1931.

• 1941.

• 1991.