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


bconsumption investment government purchases and net exports


cconsumption transfer payments. wages and profits.


dNet National Product Gross National Product, and Disposable personal income



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


aintermediate production


b Net National Product


cInvestment


ddepreciation


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


bIt measures Gross Domestic Product


cIt does not measure the quality of the items produced


d It is only measured every five years:



To adjust from Gross National Product to Net National Product ?


aDeduct depreciation


bDeduct indirect taxes


cDeduct subsidies


dAdd inflation


View Answer Deduct subsidies

The standard of living is often measured by ?


a Real GDP per capita


bReal GDP


cReal GDP population


d Real GDP plus depreciation



Net National Product equals ?


aGross National Product adjusted for inflation


bGross Domestic Product adjusted for inflation


cGross Domestic Product plus net property income from abroad


dGross National Product minus depreciation



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


a investment


b net exports


cconsumption


d none of these answers


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


bNet exports increase by Rs40,000


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


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



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


aintermediate production exceeds final production


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


creal GNP exceeds nominal GNP


dreal GDP exceeds nominal GDP



GDP would include which of the following ?


athe value of taking a day off from work


bconsulting services


cintermediate sales


dhousework


View Answer consulting services

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