Question 1

What does NNP stand for in national income accounting?

Accepted Answer

Net National Product

Answer

Net National Product Value

Answer

National Product Net

Answer

National Net Profit

Question 2

Which of the following is included in Gross National Product (GNP)?

Accepted Answer

Income earned by residents abroad

Answer

Income earned by foreign residents

Answer

Only domestic production

Answer

Indirect taxes only

Question 3

What is the main difference between NDP and GNP?

Accepted Answer

NDP subtracts depreciation from GNP

Answer

NDP measures only final goods

Answer

NDP is always higher than GNP

Answer

NDP includes only government spending

Question 4

Which of the following is NOT a component of national income?

Accepted Answer

Household savings

Answer

Wages and salaries

Answer

Profits

Answer

Rent and interest

Question 5

What does the term 'depreciation' refer to in national income accounting?

Accepted Answer

The reduction in value of capital goods over time

Answer

The total output of goods produced

Answer

The increase in national debt

Answer

The rise in consumer spending

Question 6

What does GNP measure?

Accepted Answer

The total economic output produced by a country's residents

Answer

The income of foreign workers in the country

Answer

Only goods produced within national borders

Answer

The total taxes collected by the government

Question 7

Which of the following statements about NDP is true?

Accepted Answer

NDP accounts for depreciation of capital assets

Answer

NDP excludes government expenditure

Answer

NDP includes only wages and salaries

Answer

NDP is the same as GNP

Question 8

How is Net National Product (NNP) calculated?

Accepted Answer

GNP minus depreciation

Answer

GDP minus national income

Answer

GDP plus exports

Answer

GNP plus depreciation

Question 9

Which of the following components is part of Net Domestic Product (NDP)?

Accepted Answer

Consumer spending

Answer

Exports minus trade deficit

Answer

Imports

Answer

Government debt

Question 10

What is the primary focus of Gross National Product (GNP)?

Accepted Answer

Production by a nation's residents

Answer

Total value of imports

Answer

Production by foreign companies

Answer

Production within national borders only

Question 11

Which of the following is the total value of all final goods and services produced within a country's borders in a given time period?

Accepted Answer

Gross Domestic Product (GDP)

Answer

Gross National Product (GNP)

Answer

Net National Product (NNP)

Answer

Net Domestic Product (NDP)

Question 12

What does Net National Product (NNP) represent?

Accepted Answer

Gross National Product (GNP) minus depreciation

Answer

Net Domestic Product (NDP) minus imports

Answer

Total production plus taxes

Answer

Gross Domestic Product (GDP) plus exports

Question 13

Which of the following is included in Gross National Product (GNP)?

Accepted Answer

Income earned by residents from overseas investments

Answer

Income earned by foreign residents within the country

Answer

Depreciation of capital assets

Answer

Only the value of goods produced domestically

Question 14

What does Net Domestic Product (NDP) account for?

Accepted Answer

Depreciation in the value of capital goods

Answer

Government revenue from taxes

Answer

Consumer spending on goods

Answer

Total income from exports

Question 15

Which of the following best describes National Income?

Accepted Answer

The total income earned by a nation's residents and businesses

Answer

The GDP minus imports

Answer

The total value of all goods and services produced in the nation

Answer

The sum of all taxes collected by the government

Question 16

What is the primary difference between Gross Domestic Product (GDP) and Gross National Product (GNP)?

Accepted Answer

GDP measures production within a country's borders, while GNP measures production by a country's residents regardless of location

Answer

GDP includes only services while GNP includes only goods

Answer

GNP is always higher than GDP

Answer

GDP accounts for imports whereas GNP does not

Question 17

What is the purpose of calculating Net Domestic Product (NDP)?

Accepted Answer

To determine the sustainable level of production in an economy after accounting for capital depreciation

Answer

To measure total exports and imports

Answer

To assess the total economic output without adjustments

Answer

To calculate government budget surpluses or deficits

Question 18

Which of the following is NOT included in the calculation of Gross National Product (GNP)?

Accepted Answer

Income earned by foreign companies operating domestically

Answer

Income earned by citizens working abroad

Answer

Net income from investments abroad

Answer

Wages and salaries of residents

Question 19

Which term refers to the total output that a country's economy can produce over a specific period without increasing inflation?

Accepted Answer

Potential Gross Domestic Product (Potential GDP)

Answer

Actual GDP

Answer

Net Domestic Product (NDP)

Answer

Gross National Product (GNP)

Question 20

What does the term 'depreciation' refer to in economic terms?

Accepted Answer

The reduction in the value of an asset over time due to wear and tear

Answer

The total income generated by an asset

Answer

The increase in asset prices

Answer

The value of all new assets produced

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