Understanding GNI and GDP

What is the meaning of the abbreviation GNI?

• Gross National Index

• General National Income

• Gross National Income

• General Net Income

Which of the following factors is included when calculating GNI?

• Transactions in the informal economy

• Goods and services produced by a country’s citizens

• Second-hand products

• Illegal business activities

What is the main goal of measuring national income?

• To determine tax rates

• To assess the economic health of a country

• To monitor inflation rates only

• To regulate international trade

Which of the following is NOT considered when calculating GDP?

• Income of foreign workers in the country

• Goods and services produced within the country's borders

• The earnings of OFWs abroad

• Local business revenue

How do GDP and GNI differ?

• GDP includes production by citizens abroad, while GNI does not.

• GNI includes production by citizens globally, while GDP focuses on domestic production.

• GDP measures only exported goods, while GNI includes both imports and exports.

• GDP and GNI are calculated using the same method.

Which of the following sectors is NOT included in the Industrial Origin Approach?

• Agriculture

• Services

• Industry

• Household

In the Circular Flow Model, what role do households play?

• They produce goods and services.

• They provide factors of production and consume goods.

• They regulate the economy through policies.

• They determine inflation rates.

In the Fourth Model of Circular Flow, what is the government's role?

• Serve as a regulator and tax collector

• Replace businesses in production

• Engage in foreign trade

• Only collect taxes from households

What occurs when a country’s exports exceed its imports?

• The trade balance is positive.

• The country experiences a trade deficit.

• Inflation increases.

• The economy weakens.

What does the Net Factor Income from Abroad (NFIFA) measure?

• The total revenue from exported goods

• The difference between income earned by citizens abroad and foreigners in the country

• The sum of imports and exports

• Government tax collections