National Income Accounts Quiz

Which of the following is a primary use for national income accounts?

• A) To measure changes in the value of production and income in the economy

• B) To analyze the environmental cost of economic growth

• C) To determine whether there is a fair and equitable distribution of income in the

  economy

• D) To assess the economic efficiency of specific industries in the economy

GDP is the market value of:

• A) Resources (land, labor, capital, and entrepreneurship) in an economy in a given

  year

• B) Consumption and investment spending in an economy in a given year

• C) All output produced and accumulated over the years

• D) All final goods and services produced in an economy in a given year

Per capita income refers to the:

• A. Total income earned by companies

• B. Total income of a country

• 
  C. Average income per person

• D. Income earned only by workers

• 
  E. Government budget

A country has a national income of $5,000,000 and a population of 500,000. What is its per capita income?

A. $5
B. $10
C. $50
D. $100
E. $1,000

• a

• b

• c

• d

• e

Per capita income is calculated by:

A. Dividing the population by national income
B. Dividing imports by exports
C. Adding personal savings and investments
D. Dividing GDP by unemployment rate
E. Dividing national income by the population

• a

• B

• C

• D

• E

4. A country with a smaller population but the same national income will have:

A. Lower per capita income
B. Higher per capita income
C. Same per capita income
D. Unmeasurable income
E. Zero per capita income

• A

• B

• C

• D

• E

Why is per capita income not always a good indicator of actual living standards?

A. It includes only government income
B. It changes daily
C. It does not reflect income inequality
D. It ignores GDP
E. It cannot be calculated in developing countries

• A

• B

• C

• D

• E

A country's per capita income increased from $2,000 to $2,200, but its population grew by 8%. What can be concluded?

A. Living standards certainly increased
B. Population growth does not affect per capita income
C. Real improvement in welfare may be smaller than the increase in per capita income
D. The country became poorer
E. Per capita income is not affected by GDP

• A

• B

• C

• D

• E

1. What is the main purpose of fiscal policy?

A. To control interest rates
B. To regulate foreign trade
C. To stabilize the currency value

D. To manage government spending and taxation
E. To control the money supply

• A

• B

• C

• D

• E

Which of the following is included in fiscal policy tools?

A. Government spending
B. Reserve requirements
C. Interest rates
D. Exchange rates
E. Monetary supply

• A

• B

• C

• D

• E