Economic Income Components Quiz
Test your knowledge on economic income components, GDP, disposable income, and more with this macroeconomics quiz.
#1
Which of the following is NOT a component of economic income?
Wages and salaries
Interest income
Capital gains
Tax refunds
#2
What is included in the calculation of gross domestic product (GDP)?
Government spending
Imports
Consumer spending
All of the above
#3
What is the primary function of national income accounting?
To measure the overall level of inflation
To calculate the total value of a nation's exports
To track the flow of income and expenditures in an economy
To determine the optimal level of government spending
#4
Which of the following is NOT included in the calculation of national income?
Rental income
Corporate profits
Unemployment benefits
Private transfer payments
#5
Which of the following is considered a transfer payment?
Social Security benefits
Income from investments
Salary from employment
Dividends from stocks
#6
What is the formula to calculate disposable income?
Gross income minus taxes
Gross income plus taxes
Net income minus savings
Net income plus savings
#7
What is the primary purpose of calculating net national income (NNI)?
To measure the total output of goods and services
To measure the total income earned by citizens and businesses
To measure the total value of goods and services produced within a country's borders
To measure the total income earned by citizens, businesses, and government, minus depreciation
#8
Which of the following is an example of a non-market transaction?
Buying groceries from a supermarket
Paying for medical treatment
Providing childcare for a family member without payment
Hiring a plumber to fix a leaky faucet
#9
Which of the following accurately represents the equation for calculating economic income?
Economic income = Gross income - Taxes
Economic income = Gross income + Taxes
Economic income = Net income - Savings
Economic income = Net income + Savings
#10
Which component of economic income represents the change in the value of an asset over time?
Wages and salaries
Interest income
Capital gains
Transfer payments
#11
In national income accounting, what does the term 'depreciation' refer to?
The decrease in value of a nation's currency
The decrease in the worth of a country's assets over time
The decrease in the value of a company's stock
The decrease in the value of a country's imports
#12
Which of the following statements accurately describes the relationship between saving and investment in an economy?
Savings always equals investment in a closed economy.
Investment always exceeds savings in an open economy.
Savings and investment are independent of each other.
Savings and investment are equal in a closed economy but may differ in an open economy.
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