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WorksheetsUnit I- Chapter 2-National Income Accounting
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
In GNP calculation which of the following should be excluded?
a)
Rental incomes
b)
Interest payments
c)
Dividends
d)
Government transfer payment
2.
Net national product at factor cost is also known as:
a)
Net Domestic product
b)
Gross National product
c)
National Income
d)
Personal Income
3.
National Income doesn’t include:
a)
Interest on unproductive national debt
b)
Income for government expenditure
c)
The payments by the household to firm for the purchase of goods and services
d)
Undistributed profit
4.
Product method of calculating national income is also known as
a)
Income method
b)
Value added method
c)
Expenditure method
d)
Distribution method
5.
Transfer payments refer to payments, which are made:
a)
Without any exchange of goods and services
b)
To workers on transfer from one job to another
c)
As compensation to employees
d)
None of the above
6.
Real GDP is obtained by
a)
Nominal GDP minus GDP deflator.
b)
Nominal GDP divided by CPI.
c)
Nominal GDP divided by GDP deflator.
d)
Nominal GDP multiplied by price level.
7.
The nominal interest rate is equal to
a)
real interest rate / inflation rate.
b)
real interest rate × inflation rate.
c)
real interest rate + inflation rate.
d)
real interest rate – inflation rate.
8.
Which of the following is not a government transfer?
a)
public pensions
b)
government spending on education
c)
welfare payments
d)
unemployment insurance benefits
9.
Mobin and Mona just bought their new house. In the national income accounting, this transaction is considered as
a)
consumption on durable goods.
b)
inventory investment.
c)
consumption on semi-durable goods.
d)
fixed cost
10.
In using the expenditure approach to GDP, consumption
a)
includes consumer durables, semidurables, nondurable goods, but excludes services.
b)
includes consumers spending on durable goods, and nondurable goods, and services.
c)
includes houses and services.
d)
includes houses and all purchases by business firms.
11.
According to the fundamental identity of national income accounting,
a)
Y = C + I + G + NX.
b)
S = (Y + NFP – T + TR + INT) – C.
c)
total production = total income = total expenditure.
d)
GDP = GNP – NFP.
12.
Which statement is true?
a)
National Income = National expenditure - indirect taxes
b)
NI = GNP - NNP
c)
NI = NNP - indirect taxes
d)
NI = PI
13.
If we compare GDP and GNP, then:
a)
GNP = GDP - net income from abroad
b)
GNP = NNP - net income from abroad
c)
GNP = GDP + net income from abroad
d)
GNP = NNP + net income from abroad
14.
To avoid double counting when GDP is estimated, economists:
a)
Use GDP deflator
b)
Calculate value added at each stage of production
c)
Use retail prices
d)
Use price of only intermediate goods
15.
To adjust from Net National Product to Gross National Product:
a)
Add depreciation
b)
Deduct indirect taxes
c)
Add subsidies
d)
Add inflation
16.
The standard of living is often measured by:
a)
Real GDP per capita
b)
Real GDP
c)
Real GDP * population
d)
Real GDP plus depreciation
17.
GDP measures:
a)
A country's income
b)
A country's wealth
c)
Consumer spending
d)
Net trade income
18.
A higher GDP per capita may not mean that the quality of life has really improved because:
a)
It measures wealth not income
b)
It measures Gross Domestic Product
c)
It does not measure the quality of the items produced
d)
It is only measured every five years
19.
Real national income measures:
a)
Nominal national income adjusted for population change
b)
Nominal national income adjusted for unemployment
c)
Nominal national income adjusted for inflation
d)
Nominal national income adjusted for exchange rates
20.
Net National Product equals:
a)
Gross National Product adjusted for inflation
b)
Gross Domestic Product adjusted for inflation
c)
Gross Domestic Product plus net property income from abroad
d)
Gross National Product minus depreciation
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