National Income Concepts Test 6: AP Macroeconomics

The GNP of a country is greater than its GDP if:
Exports are greater than Imports
Imports are greater than Exports
Imports are equal to Exports
Prices are falling
Prices are rising
NNP of a country for a given year is the GNP:
plus Capital Formation
minus Capital Depreciation
minus Import of Capital Goods
plus import of Capital Goods
plus Capital Depreciation
When Personal Income is equal to Private Income:
Corporate Taxes plus Corporate Saving is equal to zero
Corporate Taxes minus Corporate Saving is equal to zero
Corporate Taxes are zero
Corporate Savings are zero
None of the Above
An increase in the National Income at constant prices is also known as:
Increase in Real National Income
Real increase in National Income
Real increase in Per Capita Income
Nominal increase in Per Capita Income
Increase in Per Capita Income in real terms
Welfare is improved when with a rise in Per Capita Income:
The overall income distribution remains the same
The income distribution changes in favour of the industrial labour
The income distribution changes in favour of the rich
The income distribution changes in favour of the poor
None of these
The income of employees in a foreign banks operating in the USA becomes a part of:
Property income earned from abroad by USA banks
Compensation of employees taken as the normal residence of USA
Domestic factor income of USA
Factor income earned from abroad by USA
None of these
GNP includes purchase of new house under:
Investment
Personal Savings
Personal Consumption Expenditure
Capital Consumption Allowance
Capital Expenditure
The difference between Gross National Product and Net National Product equals to:
Direct Taxes
Indirect Taxes
Depreciation
Foreign Income
Subsidies
Mixed income is: I included in the total factor income II included in the domestic income III income earned by self-employed persons, traders and small enterprises
I only
II only
III only
I and II only
I, II and III
Which of the following would be included in the sum of GNP?
Smuggled goods
Income from gambling
Income earned from Sale of illegal arms
Interest earned
Money generated from trafficking of drugs
Description:

One of the most important chapters of Macroeconomics AP is National Income. Here is a test which checks your knowledge of how the figure of National Income, GNP, NNP and other related concepts are arrived at. If you are unsure of what to add or subtract from NDP or GNP to get a related concept, quickly take this revision test. Try out this 7-minute short Multiple Choice questions test on the items and heads included in or excluded from National Income and its related Concepts.

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