Wealth-Forum e-zine

Test your understanding of this topic

Q1.

National income represents:

a. the total income earned by the residents of a country during a year

b. the total value of output of goods & services produced in an economy during a year

c. Both a & b

Q2.

The total market value of all finished goods & services produced in a year by a country's residents represents:

a. GDP

b. GNP

c. PPP

Q3.

The best way to compare standard of living of people across different countries is to look at

a. GDP per capita

b. GDP per capita on PPP basis

c. GNP per capita

Q4.

The money value of all final goods & services produced by residents & non-residents within a country’s borders in a specified time period represents:

a. GDP

b. GNP

c. NNP

Q5.

Which approach measures GDP by adding together the total expenditure incurred in buying a year’s output?

a. Value added approach

b. Income approach

c. Expenditure approach