Corporate tax is levied on:
1.Landlords
2.Municipal corporations
3.Big companies
4.Importers
GNP includes:
1.A loan from a bank
2.Al loan from one s parents
3.Gifts and donations
4.A broker s commission
GNP is always:
1.Less than NNP
2.Greater than NNP
3.Equal to NNP
4.Greater in many years but less in others
If government increases taxes private savings:
1.Increase
2.Decrease
3.Do not change
4. None of the above
In calculating national income which one will not be included:
1.Exports
2.Undistributed by firms
3.Wages of a lecturer
4.Old age pensions
In economics one or more persons living in a joint family are called a:
1.Business firm
2.Social gathering
3.Super family
4.Household
In terms of national income accounts multiple counting refers to:
1.The addition to GNP of multiple units of a good
2. Counting currently produced goods more than once
3.The inclusion in GNP of gross spending and taxes
4.Counting both goods and services
It is considered as transfer payment:
1.Salary of an employee
2.Bouus paid to bank employees
3.Payment of house rent
4.Unemployment allowance paid by govt.
It is deducted from GNP to find NNP:
1.Savings
2.Direct taxes
3.Depreciation allowance
4.Subsidies
It is transfer payment:
1.Payment of college tuition
2.A social security payment
3.Interest paid for a bank loan
4.Payment for a leased car
It is transfer payment:
1.Bus fare
2.College fee
3.Pension
4.Salary
This is NOT a method of measure national income:
1.By adding all incomes
2.By adding all expenditure
3. By adding money value of all production
4.By adding all money supply in the country
Undistributed profits are considered:
1.Income earned but not received
2.Income received but not earned
3.ncome earned and received
4.None of the above
When National income is estimated by expenditure method we include:
1.All govt. expenditure
2.All households expenditure
3.All expenditure of the business sector
4.All of the above
A country is poor if it has:
1.Less production of goods per capita
2.Less amount of gold
3.Less amount of foreign currency
4.Less exports
A TV set purchased from a retail store is an example of:
1.Intermediate good B
2.Capital goods
3. Surplus goods
4.Final goods
Direct taxes are not included in:
1.NNP
2.PI
3.DPI
4.(a) and (c) of above
Govt. transfer payment include:
1.Social security benefits
2.Welfare benefits
3.Student scholarships
4.All of the above
If C=200 and I = 40 then Y will equal to:
1.160
2.240
3.200
4. None of the above
It is counted in GDP:
1.Sale price of an old car
2.Purchase of 100 shares of PSO
3.A TV set produced this year but not sold
4.The leisure people consume
National Income is:
1.Total income spent in the economy
2. Sum of disposable personal income and saving
3.NNP minus the capital consumption allowance
4.Total income earned in producing the national product
Net exports are:
1.Total exports plus total imports
2.Total exports minus total imports
3.Total imports minus total exports
4.Total exports divided by total imports
Net Investment is:
1.Gross Investment minus household Investment
2.Gross Investment minus govt. Investment
3.Gross Investment minus capital consumption allowance
4.None of the above
Select the correct statements:
1.Transfer payments are included in national income
2.Depreciation allowance is a part of GNP
3.Taxes are not included in NNP
4.GDP means Gross Direct Production
Traffic fines are:
1.Part of personal consumption spending
2.Excluded from national income accounts
3.Included in NI but not in PI
4.Included in PI but not in Disposable PI
Which is a flow concept:
1.Number of my shirts
2.My monthly income
3.My total wealth
4.Money supply
Which of the following is not macroeconomics:
1.Inflation
2.Unemployment
3.The level of output in the economy
4.Level of wages in garment industry
Which of the following would increse level of national income?
1.An increase in taxation
2. A reduction in government spending
3.A reduction in consumer spending
4.An increase in exports
Which statement is true?
1.NNP = GNP - Depreciation
2.NNP = NI
3.NNP = DPI
4.None of these
Which statement is true?
1.National Expenditure = National income
2.National Expenditure = National income + National production
3.National Expenditure = National income + National Taxes
4.National Expenditure = National income - Taxes
A closed economy is best described as one in which:
1.There are no monopolies
2.No corporations
3.No externalities
4.No international trade
A country is poor if it has:
1.Less amount of gold
2.Less amount of local currency
3.Less amount of foreign currency
4.Less GNP per capita
Consumption spending does not include:
1.Household s purchase of food
2.Household s purchase of car
3.Household s payment of rent for an apartment
4.Household s purchase of stock in any XYZ corporation
GNP is always:
1.Less than NNP
2.Greater than NNP
3.Equal to NNP
4.Any of (a) (b) (c)
GNP is:
1.Total sales in the economy
2.Total monetary transactions in an economy
3.Total monetary transactions in an economy
4.Total monetary transactions in an economy
Gross national product includes:
1.A loan from one s parents
2. A loan from a domestic bank
3.A loan from other countries
4.None of the above
If indirect taxes are deducted from NNP and subsidies are added we achieve:
1.Personal savings
2.DPI
3.NI
4.Per capita income
If we deduct direct tax from personal income we get:
1. Net national income
2.Personal saving
3.Disposable income
4.Per capita income
In circular flow model
1.Households own the resources
2.There are never international transactions
3.Household income is limited to wages and salaries
4.Financial markets ensure that the federal govt. s budget is balanced annually
Investment spending includes the purchase of:
1.Stocks
2.Govt. bonds
3.Residential construction
4.All of the above
It is considered as investment in national accounting:
1.Construction of a house
2.Purchase of a running hotel
3.Purchase of a new shirt
4.Increase in salaries of professors
It is considered as investment:
1.Construction of a house
2.Purchase of an old house
3. Salaries of college professors
4.Both (a) & (b)
It is considered as transfer payments:
1.Salaries of employees
2.Bonus of bank employees
3. Free medical care to officers
4.Unemployment allowance paid by govt.
It is deducted from GNP to get NNP:
1.Indirect taxes
2.Depreciation
3.Direct taxes
4.Transfer payments
Macroeconomics is concerned with:
1.Aggregate economic activity
2.Spending decisions of households
3.How to produce goods
4.How to but stocks and bonds
Market value of all final goods and services produced in a country during a year is definition of:
1.NI
2.NNP
3.GNP
4.Consumpt
National income is a measure of:
1.The size of government revenue
2.Payments made to factors of production
3.Total increase in wages in a year
4.Total production of goods in a period
NI = NE is an:
1.Equation
2.Identity
3.Function
4.None of these
Per capita income is:
1. Income per worker
2.Income per head
3.Income per household
4. Income per industrial unit
PI is equivalent to:
1.DPI minus personal taxes
2.DPI plus unearned receipts
3.DPI minus income earned but not received
4.NI plus unearned receipts minus earnings not received (taxes)
Real national income increases when:
1.Prices of goods are rising
2.National savings increase
3. Quantity of goods and services increases
4.None of above
The four factor payments are:
1.Money capital salaries and income
2. Wages rent interest and profits
3.Money power prices and wealth
4.Wages interest salaries and income
The four factor payments are:
1.Money capital salaries and income
2.Wages rent interest and profits
3.Money power prices and wealth
4.Wages interest salaries and income
The largest part of national income is:
1.Consumption
2.Investment
3.Saving
4.Transfer payments
There are methods of measuring national income:
1.5
2.2
3.1
4.3
They have a functional relation
1.Consumption and national income
2.Consumption and saving
3.Consumption and investment
4.All of the above
To avoid double counting when GDP is estimated economist:
1.Use GDP deflator
2. Calculate value added at each stage of production
3.Use retail prices
4.Use price only intermediate goods
To determine the correct level of GNP it is necessary to:
1.Add up the values of goods and services during one year
2.Add up all savings
3.Count all imports
4.Add up the value of semi finished goods
Transfer payments are not included in national income because:
1.Such payments are made to persons living abroad
2.Double counting would result
3.They are illegal
4.There is no method to account for these
Transfer payments means:
1.Bank loans
2.The payment without work
3.Tax payments
4.Payment made to all factors of production
We measure national income by this method:
1.Expenditure method
2. Income method
3.Product method
4. All of the above
Which is the largest figure:
1.NNP
2.GNP
3.DPI
4.PI
Which of the following is not included in personal Income:
1.Social security benefits
2.Dividend payments
3.Undistributd corporate profits
4.Interest received from saving certificates
Which of the following would not be included in GNP:
1.Govt. transfer payments
2.Payment for construction of state high way
3.Govt. purchase of an airplane
4. Salary paid for the presidents secretary
Which statement is true?
1.National Income = National Expenditure - indirect taxes
2.NI = GNP - NNP
3.NI = NNP - indirect taxes
4.NI = PI