Economics MCQs

Page No. 300

Gross Domestic Product can be measured as the sum of ?


a final goods and services intermediate goods, transfer payments, and rent

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bconsumption investment government purchases and net exports

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cconsumption transfer payments. wages and profits.

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dNet National Product Gross National Product, and Disposable personal income

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The value of plant and equipment worn out in the process of manufacturing goods and services is measured by ?


aintermediate production

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b Net National Product

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cInvestment

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ddepreciation

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View Answer depreciation

A higher GDP per capita may not means that the quality of life has really improved because ?


aIt measures wealth not income

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bIt measures Gross Domestic Product

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cIt does not measure the quality of the items produced

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d It is only measured every five years:

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To adjust from Gross National Product to Net National Product ?


aDeduct depreciation

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bDeduct indirect taxes

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cDeduct subsidies

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dAdd inflation

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View Answer Deduct subsidies

The standard of living is often measured by ?


a Real GDP per capita

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bReal GDP

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cReal GDP population

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d Real GDP plus depreciation

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Net National Product equals ?


aGross National Product adjusted for inflation

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bGross Domestic Product adjusted for inflation

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cGross Domestic Product plus net property income from abroad

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dGross National Product minus depreciation

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If your grandparents buy a newly built retirement home, this transaction would affect ?


a investment

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b net exports

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cconsumption

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d none of these answers

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View Answer investment

How is your purchase in Pakistan of a Rs40,000 BMW automobile that was produced entirely in Germany recorded in the Pakistan’s GDP accounts ?


a Consumption in increase by Rs40,000 and net export decreases by Rs40,000

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bNet exports increase by Rs40,000

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c There is no impact because this transaction does not involve domestic production

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d Investment increased by Rs40,000 and net exports increases by Rs40,000

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If Pakistan’s GDP exceeds Pakistan’s GNP, then ?


aintermediate production exceeds final production

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bforeigners are producing more in the Pakistan then Pakistanis are producing in foreign countries

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creal GNP exceeds nominal GNP

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dreal GDP exceeds nominal GDP

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GDP would include which of the following ?


athe value of taking a day off from work

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bconsulting services

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cintermediate sales

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dhousework

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View Answer consulting services

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