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CHAPTER 2:NATIONAL INCOME ACCOUNTING

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

1.How many approaches in calculating national income?

a)

4

b)

3

c)

2

d)

1

2.

2.When will GDP at market price be equal to GDP at factor cost ?

a)

Indirect taxes=subsidy

b)

indirect taxes >subsidy

c)

indirect taxes < subsidy

d)

none of these

3.

3.Which one of the following is NOT included in National Income?

a)

Old age pension

b)

salary

c)

wages

d)

bonus

4.

4. The national income is

a)

a. NNP at factor cost

b)

b. NNP at market price

c)

c. GNP at market price

d)

d. GNP at factor cost

5.

5.The value of the output of all goods and services produced within a country in a year.

a)

total output

b)

Gross Domestic Product

c)

national income

d)

net domestic product

6.

6.When a nation's exports exceed its imports and is calculated as exports - imports

a)

trade surplus

b)

trade deficit

c)

inventory

d)

gross domestic product

7.

7.When a nation's imports exceed its exports and is calculated as imports -exports

a)

inventory

b)

gross domestic product

c)

trade surplus

d)

trade deficit

8.

8.Which of the following is a final expenditure ?

a)

Car purchased by a dealer

b)

Vegetables purchased by a restaurant

c)

Milk purchased by a tea-maker

d)

Car purchased by a household

9.

9.Which is an example of a final good or service

a)

Coffee Beans at Starbucks

b)

T-Shirt at Polo Store

c)

Lumber at furniture store

d)

Wheat at a bakery

10.

10.What is depreciation?

a)

Capital loss

b)

Fixed capital loss

c)

Consumption of fixed capital

d)

None