Economic Concepts and National Income

What is the primary purpose of national income statistics?

• To determine tax rates

• To assess economic activity

• To measure a country's wealth

• To calculate population growth

Which of the following is a measure of national income?

• Unemployment Rate

• Net Property Income

• Gross Domestic Product (GDP)

• Consumer Price Index

What does GDP stand for?

• General Domestic Product

• General Development Product

• Gross Domestic Product

• Gross Development Product

What is the difference between GNI and GDP?

• GDP includes income earned abroad

• GNI is always higher than GDP

• GNI is only for developed countries

• GNI includes income earned abroad

Which method of measuring GDP focuses on the value of output produced?

• Income method

• Market method

• Expenditure method

• Output method

What is the term for the income earned by residents from abroad?

• Gross National Income

• Net Property Income

• Gross Domestic Product

• Net National Income

What does the term 'basic prices' refer to?

• Prices including taxes

• Prices without government intervention

• Prices after subsidies

• Prices set by the market

Which of the following is NOT included in the income method of measuring GDP?

• Profits

• Wages

• Rent

• Transfer payments

What is the significance of adjusting national income from market prices to basic prices?

• To measure consumer spending

• To include government subsidies

• To account for inflation

• To reflect true production costs

What is the main reason for the increase in Nigeria's GDP in 2013?

• Higher oil prices

• Changes in measurement methods

• Increased foreign investment

• Population growth