National income and its measurement

GDP is the total market value of:

• 1 Only exports
• 2 All goods and services including intermediate goods
• 3 Only government spending
• 4 Final goods and services produced inside a country in a year

GNP is equal to:

• 1 GDP minus depreciation
• 2 GDP plus imports
• 3 GDP minus imports
• 4 GDP plus net factor income from abroad

NNP is equal to:

• 1 GNP plus taxes
• 2 GNP minus depreciation
• 3 GDP plus depreciation
• 4 GDP minus exports

Which of these is NOT counted in GDP?

• 1 The output of a factory
• 2 Pensions paid by the government
• 3 The services of a doctor
• 4 The wages of a teacher

The expenditure method gives GDP as:

• 1 C + I - G
• 2 Sum of all intermediate goods
• 3 C + I + G + (X - M)
• 4 W + R + I + P

C = 600, I = 200, G = 150, X = 100 and M = 80. GDP is:

• 1 970
• 2 890
• 3 1,050
• 4 1,130

Value added is:

• 1 The total sales of a firm
• 2 The tax paid by a firm
• 3 The profit of a firm
• 4 The value of output less the value of intermediate goods

Real GDP is measured at:

• 1 Constant prices of a base year
• 2 Foreign prices
• 3 Current prices
• 4 Prices of the next year

Nominal GDP is 500 and real GDP is 400. The GDP deflator is:

• 1 125
• 2 80
• 3 900
• 4 100

Which of these is a leakage from the circular flow of income?

• 1 Savings
• 2 Exports
• 3 Government spending
• 4 Investment

Per capita income is calculated as:

• 1 GDP minus imports
• 2 National income divided by population
• 3 National income multiplied by population
• 4 GDP divided by exports

Counting the same output more than once in GDP is called:

• 1 Value added
• 2 Inflation
• 3 Double counting
• 4 Depreciation