MACROECONOMICS QUIZ

According to expenditure approach, the national expenditure is made up of four economics sectors which include:

• Personal consumption, investment, government spending and net exports.

• Personal income, investment, profits and personal consumption.

• Wages and salaries, net interest, rental income and profits.

• Government spending, wages, net export and profits.

What is Net National Product (NNP)?

• Total market value of all final goods and services produced by the residents of a country during a given period of time.

• Current price in the market through the forces of demand and supply.

• The market value of the net output of final goods and services produced by a nation during a year.

• Total money value of all the final goods and services produced by a nation in a given time period.

The main uses of national income data are____________

• to measure a country's rate of economic growth.

• to measure the total contribution of economic sectors to total national production.

• to facilitate the government 's economic planning.

• all of the above.

The differences between Gross National Product and Gross Domestic Product is

• net factor income from abroad.

• depreciation.

• indirect taxes

• subsidies.

The main characteristics of a business cycle are as follows EXCEPT:

• Expansion and contraction in a business cycle are self-reinforcing and cumulative in effect.

• Business fluctuation usually appears again and again after a period of time and the causes are always the same.

• A business cycle is characterized by upward and downward movements.

• Business fluctuations occur periodically and tend to be recurrent in nature.

During recession__________

• the overall level of economic activity will fall to the lowest level.

• there will be a decrease in the level of unemployment.

• an increase in the volume of trade and transactions.

• Investment levels and consumption level are declining.

The people who tend to lose from continuous inflation are;

• debtors and shareholders.

• creditors and holders of fixed deposits in banks.

• property owner and debtors.

• creditors and property owner.

The main difference between real and nominal Gross Domestic Product is that real Gross Domestic Product _______

• includes the effect of employment changes in the economy

• has been adjusted for changes in the price level

• include the effects of trade deficits

• exclude exports and indirect taxes

The difference between Gross National Product at market prices and Gross National Product at factor cost is the value of

• capital consumption.

• import and direct taxes.

• indirect taxes and subsidies.

• net factor income from abroad.

Which of the following is NOT part of National Income?

• Profits

• Private investment

• Indirect business tax

• Wages and salaries