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C2 : SET 3 - NATIONAL INCOME ACCOUNTING

Total questions: 10

Worksheet time: 3mins

Name
Class
Date
1.

Net national product does not include_______________.

a)

Interest on consumer loans

b)

Undistributed corporate profit

c)

Taxes on corporate profits

d)

Depreciation

2.

If the gross domestic product at market price is greater than the gross domestic product at factor cost, this means that _________________.

a)

Indirect taxes are greater than subsidies

b)

Indirect taxes are smaller than subsidies

c)

Indirect taxes are positive

d)

Factor income paid abroad is positive

3.

The difference between gross national product at market price and gross national product at factor cost is __________________.

a)

Exports and imports

b)

Net factor income from abroad

c)

Subsidies and indirect taxes

d)

Depreciation

4.

The portion of corporate profit included in personal income is __________________.

a)

Undistributed corporate income

b)

Taxes on corporate profits

c)

Capital utilization allowance

d)

Dividends

5.

Food allowances for factory employees ________________.

a)

Charity allowance

b)

Scholarships for undergraduates

c)

Allowances for housewives

d)

Food allowances for factory employees

6.

The main factor that differentiates gross national product from net national product is ____________________.

a)

Net investment

b)

Gross investment

c)

Depreciation

d)

Net factor income from abroad

7.

The main factor that differentiates gross domestic product from gross national product is ________________________.

a)

Inflow and outflow of capital.

b)

Income from investment

c)

Foreign investment

d)

Exports and imports of goods

8.

When a country‟s gross national product (GNP) is smaller than its gross domestic product (GDP), this means that its ___________.

a)

Exports are less than its imports

b)

Factor income from abroad is less than factor income paid abroad

c)

Net factors income from abroad is positive

d)

Subsidies are less than indirect taxes

9.

Of the following, which is not included in the calculation of disposable income?

a)

Employee transportation allowance

b)

Interest on consumer loans

c)

EPF contributions

d)

Distributed corporate profit

10.

Of the following, which is included in the calculation of national income?

a)

Prize money of RM10 000 awarded as sales incentive

b)

Interest paid to the holder of a government guarantee letter

c)

The value of accommodation paid by an employer as part of an

employee’s wages

d)

Increased value of a house due to inflation