Economics MCQs

1) To determine the correct level of GNP (Gross national product), it is necessary to:
(A) Add up the values of goods and services during one year
(B) Add up all savings
(C) Count all imports
(D) Add up the value of semi-finished goods

2) GNP is always
(A) Less than NNP
(B) Greater than NNP
(C) Equal to NNP
(D) None of these

3) The four factor payment are:
(A) Money, capital, salaries, and income
(B) Wages, rent, interest, and profits
(C) Money, power, prestige, and wealth
(D) Wages, interest, salaries, and income

4) We measure national income by this method
(A) Expenditure method
(B) Income method
(C) Product method
(D) All of the above

5) Transfer payments means
(A) Bank loans
(B) The payment without work
(C) Tax payments
(D) Payments made to all factors of production


6) Which statement is true
(A) National Expenditure = National income
(B) National Expenditure = National income + National Production
(C) National Expenditure = National income + National Taxes
(D) National Expenditure = National income - Taxes

7) If we compare GDP and GNP, then
(A) GNP = GDP - net income from abroad
(B) GNP = GDP + net income from abroad
(C) GNP = NNP - net income from abroad
(D) GNP = NNP + net income from abroad

8) A TV set purchased from a retail store is an example of
(A) Intermediate goods
(B) Capital goods
(C) Surplus goods
(D) Final goods

9) GNP is
(A) Total sales in the economy
(B) Total monetary transactions in an economy
(C) The market value of all goods and services produced in an economy
(D) Total spending in an economy

10) GNP includes
(A) A loan from a bank
(B) A loan from one's parents
(C) Gifts and Donations
(D) A broker's commission



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