National Income Test 4 Online Mcqs Preparation

1. GNP is:

A. The market value of all goods and series produced in an economy

B. Total sales in the economy

C. Total monetary transactions in an economy

D. Total spending in an economy

2. Net Investment is:

A. Gross Investment minus household Investment

B. Gross Investment minus govt. Investment

C. None of the above

D. Gross Investment minus capital consumption allowance

3. It is deducted from GNP to find NNP:

A. Direct taxes

B. Depreciation allowance

C. Subsidies

D. Savings

4. PI is equivalent to:

A. DPI plus unearned receipts

B. DPI minus personal taxes

C. NI plus unearned receipts minus earnings not received (taxes)

D. DPI minus income earned but not received

5. In terms of national income accounts, multiple counting refers to:

A. Counting both goods and services

B. Counting currently produced goods more than once

C. The addition to GNP of multiple units of a good

D. The inclusion in GNP of gross spending and taxes

6. To avoid double counting when GDP is estimated, economist:

A. Use retail prices

B. Use GDP defoliator

C. Calculate value added at each stage of production

D. Use price only intermediate goods

7. GNP includes:

A. All loan from one's parents

B. A broker's commission

C. Gifts and donations

D. A loan from a bank

8. Undistributed profits are considered:

A. Income received but not earned

B. Income earned but not received

C. Income earned and received

D. None of the above

9. Market value of all final goods and services produced in a country during a year is definition of:

A. Consumpt

B. GNP

C. NI

D. NNP

10. A TV set purchased from a retail store is an example of:

A. Surplus goods

B. Capital goods

C. Intermediate good

D. Final goods

National Income Test 4 Online Mcqs Preparation

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