Question 1

Which of the following best describes Gross Domestic Product (GDP)?

Accepted Answer

The total value of all goods and services produced within a country in a specific time period.

Answer

The total income earned by residents of a country regardless of where it is generated.

Answer

The total value of goods and services produced by residents of a country, including those produced outside its borders.

Answer

The total value of all depreciation on capital assets in a country.

Question 2

What is the main difference between Net Domestic Product (NDP) and Gross Domestic Product (GDP)?

Accepted Answer

NDP accounts for depreciation of capital, while GDP does not.

Answer

NDP includes only the income of citizens, while GDP includes foreign incomes as well.

Answer

NDP measures production only in rural areas, while GDP measures it in urban areas.

Answer

NDP calculates economic activity over a longer time frame than GDP.

Question 3

What does Net National Product (NNP) take into account that Gross National Product (GNP) does not?

Accepted Answer

Depreciation of capital goods.

Answer

Income earned by citizens working abroad.

Answer

The economic output of only the manufacturing sector.

Answer

Total exports minus imports.

Question 4

Which of the following statements is true regarding Gross National Product (GNP)?

Accepted Answer

GNP includes the value of goods and services produced by a country's residents regardless of where they are located.

Answer

GNP measures only the productivity of land within the country.

Answer

GNP calculates only the production of domestic goods.

Answer

GNP excludes income generated from overseas investments by residents.

Question 5

Which of the following formulas correctly represents the relationship between GDP, NDP, and depreciation?

Accepted Answer

GDP = NDP + Depreciation

Answer

NDP = GDP + Depreciation

Answer

NDP = GDP - Depreciation

Answer

GDP = NDP - Depreciation

Question 6

What is the primary purpose of measuring Net National Product (NNP)?

Accepted Answer

To assess the economic welfare of a nation's residents after accounting for capital depreciation.

Answer

To measure the market value of all goods produced in a year.

Answer

To calculate the total production of a country's agricultural sector.

Answer

To estimate the financial assets of a nation.

Question 7

Which measure reflects the total income earned by residents of a country, including what they earn abroad?

Accepted Answer

Gross National Product (GNP)

Answer

Gross Domestic Product (GDP)

Answer

Net Domestic Product (NDP)

Answer

Net National Product (NNP)

Question 8

Which one of the following statements about Gross Domestic Product (GDP) is true?

Accepted Answer

GDP can be measured using the production, income, or expenditure approach.

Answer

GDP measures only the value of services and excludes goods.

Answer

GDP does not include government spending.

Answer

GDP only measures the income generated from exports.

Question 9

What does it mean if a country's GDP is growing?

Accepted Answer

It indicates that the economy is producing more goods and services compared to a previous period.

Answer

It means the country has a higher population.

Answer

It shows that inflation is decreasing.

Answer

It indicates that unemployment rates are increasing.

Question 10

Which of the following is NOT included in the calculation of Gross Domestic Product (GDP)?

Accepted Answer

Illegal economic activities and transactions.

Answer

Personal consumption expenditures.

Answer

Investments in physical capital.

Answer

Government expenditures on public services.

Question 11

What does NDP stand for in economic terms?

Accepted Answer

Net Domestic Product

Answer

Normalized Domestic Payment

Answer

Net Development Program

Answer

National Domestic Product

Question 12

Which of the following is included in the calculation of Gross Domestic Product (GDP)?

Accepted Answer

Consumption expenditure

Answer

Household savings

Answer

Environmental impact costs

Answer

Personal debt

Question 13

What does NNP stand for in economics?

Accepted Answer

Net National Product

Answer

National Net Profit

Answer

National Net Product

Answer

Net Normal Product

Question 14

Which of the following factors reduces GDP when calculating NDP?

Accepted Answer

Depreciation

Answer

Exports

Answer

Government spending

Answer

Investment

Question 15

What does the acronym GDP primarily measure?

Accepted Answer

Economic performance of a country

Answer

Environmental sustainability

Answer

Income inequality

Answer

Population growth

Question 16

Which of the following is a component of NDP?

Accepted Answer

Investment in capital goods

Answer

Foreign aid

Answer

Unemployment benefits

Answer

Import taxes

Question 17

Which of the following represents a major difference between GDP and NNP?

Accepted Answer

NNP accounts for depreciation

Answer

NNP is always higher than GDP

Answer

GDP measures only domestic products

Answer

GDP includes government spending

Question 18

What does the term 'Net' in Net Domestic Product (NDP) indicate?

Accepted Answer

It subtracts depreciation from GDP

Answer

It includes imports only

Answer

It reflects total consumption without adjustments

Answer

It aggregates all national debts

Question 19

Which of the following best describes Net National Product (NNP)?

Accepted Answer

Total value of goods and services produced by residents minus depreciation

Answer

Total income earned by all citizens

Answer

Total expenditure on consumer goods

Answer

Total value including foreign goods produced

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