Economics MCQs

Page No. 301

If nominal GDP in 2005 exceeds nominal GDP in 2004, then the production of output ?


amust have fallen


b must have risen


c must have stayed the same


dmay have risen fallen, or stayed the same because there is not enough information to determine what happened to real output



Pakistan’s Gross Domestic Product (in contrast to Gross National Product) measures the production and income of ?


a Pakistan -owned firms no matter where they are located in the world


bThe domestic manufacturing sector only


cThe domestic service sector only


dPeople and factories located within the borders of the Pakistan



Which of the following would be excluded from UK GDP fro 2005? The sale of ?


aa haircut


b the value of a lawyer’s services


ca 2005 Honda made in Swindon


dAll of things mentioned in these answers should be counted in 2005 GDP.


View Answer a haircut

An example of a transfer payment is ?


aProfit


brent


cunemployment benefits


d wages


View Answer unemployment benefits

In a recession a government ?


aIs likely to want to decrease demand in the economy


b Is likely to want to decrease demand in the economy


cIs likely to want to stabilise demand in the economy


d Is likely to want to increase supply in the economy



To adjust GDP from market prices to factor cost ?


aAdd indirect taxes


bSubtract subsidies


c Deduct indirect taxes and subsidies


dDeduct indirect taxes and add subsidies


View Answer Subtract subsidies

GDP plus net property income from abroad equals what ?


aGNP


bNNP


cDepreciation


dReal GDP


View Answer GNP

In a recession ?


aUnemployment is likely to be low


b Prices are likely to increase


cGrowth is negative


d Growth is slow


View Answer Growth is slow

Gross National Product equals ?


aNet National Product adjusted for inflation


bGross Domestic Product adjusted for inflation


cGross Domestic Product plus net property income from abroad


dNet National Product plus net property income from abroad



The Club of Rome Study, The Limits to Growth suggests that as natural resources diminish ?


a capital increasingly replaces labor


btechnological change compensates for capital depletion


c costs rise, leaving less capital for future investment


dcontingent valuation becomes critical



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