What National Income includes? Test 4: AP Macroeconomics

Under the computation of the National Income Accounts:
Social Costs are included
The value of leisure activities is included
The changes in the quality of goods and services is taken into account
All of the above
None of the above
Which of the following is excluded while calculating GNP?
Government Transfer Payments
Rental incomes
Interest payments
Personal Income includes: I Retained Profits II Government Transfer Payments III Corporate Profit Tax
I only
II only
III only
I and II
II and III
For computation of National Income, Government Enterprises are included under:
The Private sector
General Government
The Household sector
Corporate and Quasi-Corporate sector
None of the Above
The computation of GNP will include: I An operation performed in a hospital II A do-it-yourself roof repair service III The cleaning done by a housewife at home
I only
II only
III only
I and II
II and III
Which of the following is excluded from National Income but included in Personal Income?
Interest on Public Debt
Rent received
Undistributed profits
Which of the following is considered in the computation of National Income? I The sum won in a lottery II Government’s expenditure on consumer goods III Scholarship awarded to poor students
I only
II only
III only
I and II
II and III
Which of the following does not form a part of the Domestic Income?
Direct taxes collected by Government from Individuals and Corporation
Imputed rent of self-occupied house
Wages paid by Government to its employees
Reserve Fund or saving of the firms
Depreciation Charged
Which of the following is not added to the National Income to get the sum of Private Income?
Saving of non-departmental takings
Current transfers and gifts from abroad
Transfer Payments from abroad
Interest on National Debt
Net Factor Income from abroad
To calculate Private Income, from the figure of National Income:
Net Factor Income from abroad is deducted from National Income
Net Factor Income from abroad is added from National Income
Contributions to social security is added to National Income
Transfer Earnings from the government are deducted from National Income
Interest on National debt is deducted National Income

One of the most important chapters of Macroeconomics AP is National Income. Here is a test which checks your knowledge of heads and items that enter the figure of National Income. There are certain items included while computing National Income, but excluded from the related concepts of National Income. Similarly, items included under other heads do not enter the sum of Gross National Product. Try out this 7-minute short Multiple Choice questions test on the items and heads included in or excluded from National Income.



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