Quiz 1 : Unit 1

Which of the following is not a component of Gross Domestic Product (GDP)?

• Government Spending

• Net Exports

• Savings

• Consumption

Which of the following is a component of Gross Domestic Product (GDP)?

• Imports

• Interest payments on government debt

• Transfer payments from the government

• All of the above

Which of the following is not included in National Income (NI)?

• Corporate profits

• Interest income

• Rental income

• Depreciation

Which of the following is an example of double counting?

• Counting the value of a car both when it is sold and when it is resold later

• Counting the value of a car both when it is produced and when it is sold

• Counting the value of a car both when it is produced and when it is scrapped

• None of the above

Which of the following is a measure of the total income earned by a country's residents and businesses, regardless of where the production takes place?

• Gross Domestic Product (GDP)

• Gross National Product (GNP)

• NFIA

• Personal Income (PI)

Which of the following is an example of a transfer payment?

• Social Security benefits

• Wages earned by a factory worker

• Profits earned by a corporation

• Interest earned on a bank account

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

• Gross Domestic Product (GDP)

• Gross National Product (GNP)

• National Income (NI)

• Personal Income (PI)

Which of the following is not a method for calculating GDP?

• The expenditure approach

• The income approach

• The value-added approach

• The employment approach

Which of the following is not a factor of production?

• Labor

• Capital

• Money

• Land

Which of the following is not a leak from the circular flow of income?

• Savings

• Investment

• Taxes

• Imports