#1
Which of the following is included in the calculation of Gross Domestic Product (GDP)?
Government transfer payments
Intermediate goods
Social Security benefits
Stock market transactions
#2
Which of the following is not a component of the expenditure approach to calculating GDP?
Consumption
Investment
Government Spending
Imports
#3
What is the difference between nominal GDP and real GDP?
Nominal GDP includes inflation, while real GDP does not
Real GDP includes inflation, while nominal GDP does not
Nominal GDP is measured in current prices, while real GDP is adjusted for inflation
Real GDP is measured in current prices, while nominal GDP is adjusted for inflation
#4
Which of the following is an example of a transfer payment?
Social Security benefits
Wages and salaries
Dividends from investments
Corporate taxes
#5
What is the primary purpose of the national income accounts?
To track government spending
To measure the overall level of prices
To assess the distribution of income
To provide a comprehensive measure of economic performance
#6
What is the formula for Net National Product (NNP)?
Gross National Product (GNP) - Depreciation
Gross Domestic Product (GDP) - Net Exports
Gross National Income (GNI) - Taxes
Net Domestic Product (NDP) + Depreciation
#7
Which of the following is considered a leading indicator of economic performance?
Unemployment rate
Consumer Price Index (CPI)
Stock market performance
Gross National Product (GNP)
#8
What is the main purpose of the Consumer Price Index (CPI)?
To measure inflation
To calculate GDP
To determine interest rates
To assess unemployment
#9
Which of the following is a limitation of using GDP as a measure of economic well-being?
It does not account for income distribution
It includes non-market activities
It ignores changes in the quality of goods and services
All of the above
#10
Which of the following is a measure of the overall level of prices in an economy?
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Net National Product (NNP)
Gross National Income (GNI)
#11
What is the relationship between disposable income and personal income?
Disposable income is always greater than personal income
Personal income is always greater than disposable income
Disposable income equals personal income minus taxes
Personal income equals disposable income minus savings
#12
What does the term 'real GDP' refer to?
GDP adjusted for inflation
GDP without depreciation
Nominal GDP minus taxes
GDP at current market prices
#13
In National Income Accounting, what is the difference between GNP and GDP?
GDP includes net exports, while GNP does not
GNP includes depreciation, while GDP does not
GDP measures income earned within a country, GNP measures income earned by residents
There is no difference between GNP and GDP
#14
What does the term 'circular flow of income' represent in economic theory?
The movement of money in a circular pattern within an economy
The interaction between producers and consumers in a market
The continuous exchange of resources and goods among households, firms, and the government
The circular nature of the stock market
#15
In the context of National Income Accounting, what is the relationship between Gross Domestic Product (GDP) and Gross National Product (GNP)?
GDP is always greater than GNP
GNP is always greater than GDP
GDP and GNP are equal
The relationship depends on the level of net exports
#16
What is the difference between GNP and NNP?
GNP includes depreciation, while NNP does not
NNP includes net exports, while GNP does not
GNP measures income earned within a country, NNP measures income earned by residents
There is no difference between GNP and NNP
#17
In the context of economic performance, what does the term 'business cycle' refer to?
The fluctuations in the stock market
The periodic growth and contraction of the economy
The lifespan of a business entity
The competition between businesses in a market