PAUL A. BORG B.A. (Hons) Econ., Dip. Lab. Stud.
Economics Course Unit 16: National Income: Measurement Multiple Choice Questions (2010 Ed.)
1. National Income statistics for Malta are: A. A measure of the output of Maltese resources B. An indicator of Maltese living standards C. A measure of Maltas aggregate income or expenditure D. All of the above. 2. The A. B. C. D. Expenditure Approach measures: The value of the output of each firm and then adds up The incomes of the factors of production The value of the sales of the final products only The expenditure by households on consumer goods only.
3. Aggregate output is identically equal to: A. Aggregate income and aggregate expenditure B. Aggregate income only C. Aggregate expenditure only D. The expenditure by households on consumer goods only. 4. In an economy with no government and no international trade, the output of the primary sector amounts to 50m, that of the secondary sector to 120m and that of the tertiary sector to 230. Private consumption amounts to 300. Gross domestic fixed capital formation in this economy thus amounts to: A. 700m B. 400m C. 300m D. 100m. 5. In National Income statistics, public services are: A. Not included B. Included at cost C. Included at cost plus an estimated amount of profit D. Included at an arbitrary estimate. 6. Double counting or multiple counting is a problem with the: A. Expenditure approach B. Income approach C. Output approach D. Any one of the above. 7. In National Income statistics, self-provided commodites: A. May be included where there is some reliable market indicator B. May be included using an arbitrary estimate when there is no reliable market indicator C. May be left out completely when there is no reliable market indicator D. All above statements are true.
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PAUL A. BORGEconomics
8. Gross domestic fixed capital formation is the expenditure by: A. Government or public authorities on consumer goods and services as well as on producer goods B. Firms in order to purchase capital equipment C. Households on non-durable consumer goods and services D. Households on durable consumer goods and services. 9 Total Domestic Expenditure is equal to: A. Private consumption (C) + Public consumption expenditure (G) + Gross domestic fixed capital formation (I) B. Private consumption (C) + Public consumption expenditure (G) C. Private consumption (C) + Gross domestic fixed capital formation (I) D. Public consumption expenditure (G) + Gross domestic fixed capital formation (I).
10. Using the Expenditure approach, the GDP at market prices is: A. C + I B. C + I + G C. C + I + G + X D. C + I + G + X - M. 11. The A. B. C. D. GDP at factor cost is measured by taking the GDP at market prices and: Subtracting indirect taxes and adding subsidies Adding indirect taxes and subtracting subsidies Multiplying by indirect taxes and dividing by subsidies Dividing by indirect taxes and multiplying by subsidies.
12. GNP is measured by taking GDP and: A. Subtracting factor income from abroad and adding factor income paid abroad B. Adding factor income from abroad and subtracting factor income paid abroad C. Multiplying by factor income from abroad and dividing by factor income paid abroad D. Dividing by factor income from abroad and multiplying by factor income paid abroad. 13. The A. B. C. D. Net National Product (NNP) is the GNP: X capital consumption capital consumption + capital consumption - capital consumption.
14. Government payments that are not payments for services rendered such as Childrens allowances are called: A. Undistributed surpluses B. Transfer earnings C. Transfer payments D. Economic rent.
Unit 16: National Income: Measurement Multiple Choice Questions (2010 Ed.)
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PAUL A. BORGEconomics
15. Real income is: A. What the National Income would have been in the latter year had prices remained constant B. Measured by subtracting GDP from GNP C. A measure of the quantity of goods and services produced during a year D. Measured by subtracting GDP at factor cost from GDP at market prices. 16. The following table shows Maltas GDP at current prices for the years 2000 and 2005 and the Retail Price Index (base 1946) as at the end of the same years: GDP (Lm) RPI
2000 1,696,299,000 607.07 2005 1,927,093,000 684.88 Source: Central Bank of Malta Quarterly Review 1996:1 According to the figures above, Maltas GDP for 2005 at constant 2000 prices was: A. Lm 1,696,299,000 B. Lm 1,708,154,000 C. Lm 1,927,093,000 D. Lm 2,174,094,000. 17. Given that Maltas population in 2000 was 381,464 and in 2005 was 404,441, Maltas standard of living as measured by real GDP p.c.: A. Increased between 2000 and 2005 B. Decreased between 2000 and 2005 C. Remained the same between 2000 and 2005. 18. The A. B. C. D. GDP per capita (per head) is an acceptable measure of the: Quality of life Standard of living Literacy rates of a country Life expectancy of the population.
19. A relatively high GDP p.c. for a country always means that: A. All households in that country are very well-off B. The country produces a very big amount of consumer durable and non-durable goods C. The country produces a very big amount of producer goods D. The standard of living in that country is relatively high. 20. An acceptable measure of the Quality of Life is the: A. Real GDP B. Price Index C. Human Development Index D. All three of the above.
Paul A. Bor
B.A. (Hons) Econ. Dip. Lab. Stud.
, 2009
Unit 16: National Income: Measurement Multiple Choice Questions (2010 Ed.)
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