Gross Domestic Product (GDP) measures:
A) The total income of a country’s citizens
B) The total market value of all final goods and services produced within a country
C) The total income from foreign investments
D) The net income from abroad
Which of the following is the main difference between GDP and GNP?
A) GDP includes foreign income, while GNP does not
B) GNP includes income earned by a country’s citizens abroad, while GDP does not
C) GDP measures net income, while GNP measures gross income
D) There is no difference between GDP and GNP
Net National Product (NNP) is calculated by:
A) Subtracting depreciation from GNP
B) Subtracting depreciation from GDP
C) Adding depreciation to GNP
D) Adding depreciation to GDP
Which of the following is not included in the calculation of GDP?
A) Government spending
B) Consumer spending
C) Net exports
D) Transfer payments
The income earned by a country’s citizens abroad is included in:
A) GDP
B) GNP
C) NNP
D) Both GDP and NNP
If the depreciation of capital is greater than the net investment, which of the following will occur?
A) GDP will increase
B) GNP will increase
C) NNP will decrease
D) GNP will decrease
Which of the following would increase GDP?
A) An increase in foreign investments
B) An increase in the price level of goods
C) A rise in exports without any changes in imports
D) A reduction in domestic spending
To calculate NNP, you would subtract:
A) Depreciation from GDP
B) Depreciation from GNP
C) Depreciation from net exports
D) Depreciation from national savings
Which of the following is included in GNP but not in GDP?
A) Rent paid to landlords
B) Income earned by foreign workers in the country
C) Profits earned by citizens from investments abroad
D) Consumer expenditures on goods
A decrease in depreciation leads to:
A) An increase in GDP
B) A decrease in GNP
C) A decrease in NNP
D) An increase in NNP
Which of the following factors is excluded from the calculation of GDP?
A) Government spending
B) Private consumption
C) Investments by businesses
D) Income from foreign investments
The term “Gross” in GNP refers to:
A) Total income after depreciation
B) Total income before depreciation
C) Net income after deducting expenses
D) Net income after deducting taxes
GDP is a measure of:
A) The national wealth of a country
B) The total income earned by a country’s residents
C) The total market value of final goods and services produced within a country
D) The total savings of a country
In GDP calculation, which of the following is considered an investment?
A) Government expenditure on salaries
B) Purchases of final consumer goods
C) Expenditures on machinery and equipment
D) Income earned from abroad
Which of the following is the formula for calculating NNP?
A) GDP + Depreciation
B) GNP – Depreciation
C) GDP – Depreciation
D) GNP + Depreciation
GDP does not include:
A) Market value of final goods and services
B) Capital goods
C) Intermediate goods
D) Government spending
Which of the following is a key component of GNP?
A) Net exports
B) Total government spending
C) Income earned by citizens abroad
D) Expenditures on consumer goods
The total income of a country’s residents, regardless of where it is earned, is referred to as:
A) GNP
B) GDP
C) NNP
D) Net exports
Which of the following would not be included in the calculation of GDP?
A) Value of new housing construction
B) Value of used car sales
C) Government expenditure on infrastructure
D) Investment in plant and equipment
If GNP exceeds GDP, it indicates that:
A) A country is experiencing a trade deficit
B) The country’s citizens are earning income from abroad
C) The country has low levels of investment
D) The country is facing economic decline
Which of the following is calculated as the market value of final goods and services produced by residents of a country within a year?
A) GDP
B) GNP
C) NNP
D) Net exports
Which of the following factors is not directly included in GDP?
A) Investment in new machinery
B) Consumer expenditures on goods
C) Exports of goods and services
D) Depreciation of capital goods
To find the net national product, you must subtract from GNP:
A) Imports
B) Depreciation
C) Investments
D) Exports
A country with high GNP per capita is likely to have:
A) Low standard of living
B) High levels of foreign debt
C) High levels of investment in infrastructure
D) High standard of living
Which of the following is the correct formula for calculating GDP?
A) Consumption + Investment + Government Spending + Net Exports
B) GNP – Depreciation
C) Net Exports + Imports – Exports
D) Consumption + Savings + Investments
If the depreciation of capital goods is higher than the net investments in a country, it results in:
A) An increase in GNP
B) A decrease in NNP
C) An increase in GDP
D) A decrease in GDP
Which of the following measures is most useful for comparing economic performance across countries?
A) GDP
B) GNP
C) NNP
D) GDP per capita
A country’s GNP is higher than its GDP. What does this indicate?
A) The country has a trade deficit
B) The country’s residents are earning substantial income from abroad
C) The country is heavily dependent on foreign imports
D) The country is facing a recession
GDP includes:
A) The value of all final goods and services produced within a country
B) The total wealth accumulated by a country
C) The value of goods and services produced by foreign residents
D) The income from international investments
