WorksheetsC2 : SET 1 - NATIONAL INCOME ACCOUNTING
Total questions: 10
Worksheet time: 5mins
Gross Domestic Product is equal to the sum of consumption expenditure, investment, government purchases and _____________.
Profits
Savings
Net taxes
Net exports
To convert GNP at factor cost to GNP at market price, it is necessary to add _____________________.
Indirect taxes and subtract subsidies
Expenditure on import
Subsidies and subtract indirect taxes
Depreciation
When foreign sectors are included in calculating national income by using expenditure approach, the equation for aggregate income is_________________.
Y=C+S+T+X–M
Y=C+S–T-X+M
Y=C+I+G+X-M
Y=C+I+T+X+M
In a circular flow of income in a closed economy with government intervention, leakage consists of _________________.
Investment and savings
Savings only
Savings and taxes
Savings, taxes and imports
In using the expenditure approach to GDP, consumption
Includes houses and services
Includes consumers spending on durable good, and nondurable goods, and services
Includes consumer durables, semi durables, nondurable goods, but excludes services.
Includes houses and all purchases by business firms.
Which of the following is considered to be an investment in the national income accounts?
Increases in inventories of unsold goods
Money deposited in a bank
Purchases of land
Purchases of Treasury bills
National production means goods and services produced within the borders of a nation during a specified period.
TRUE
FALSE
Gross Domestic Product is equal to sum of consumption expenditure, investment, government purchases and profits.
TRUE
FALSE
Goods and services produced in Singapore are counted as part of Singapore‟s GDP.
TRUE
FALSE
In order to calculate national production value, GDP values the goods based on the market price.
TRUE
FALSE
