Economics-15(National Income Statistics)

What is national income?

• The total expenditure of a country

• A measure of a country’s economic activity

• A country’s total output

• The total amount of money in circulation

National income statistics measure…..

• The wealth of individuals in a country

• The total output, income, and expenditure of an economy

• The number of jobs in a country

• The inflation rate

Why do governments use national income statistics?

• To determine the price of goods and services

• To decide how much tax to collect from citizens

• To find out the number of businesses in the country

• To measure economic performance and compare with other countries

How does a government react if an economy is growing at a slower rate?

• It introduces policy measures to stimulate the economy

• It stops collecting taxes

• It reduces public services

• It increases interest rates

Which international organization uses national income statistics for comparisons?

• International Red Cross

• FIFA

• World Health Organization

• United Nations

What does Gross Domestic Product (GDP) measure?

• The total income earned by a country’s residents worldwide

• The total value of output produced within a country

• The total amount of money spent by a country’s government

• The total population of a country

What does “domestic” mean in Gross Domestic Product (GDP)?

• Related to international trade

• Related to the home economy

• Related to government spending

• Related to multinational companies

What is the main difference between GDP and Gross National Income (GNI)?

• GDP measures only domestic production, while GNI includes international income

• GDP includes income from abroad, while GNI does not

• GDP is used by the United Nations, while GNI is not

• GDP includes net property income from abroad, while GNI does not

What is Gross National Disposable Income (GNDI)?

• The total disposable income of individuals in a country

• GDP plus net property income from abroad

• The total revenue a government collects in taxes

• GNI plus net transfers of worker’s income to and from other countries

What is an example of a multinational company (MNC)?

• A store that only sells local products

• A small business with one location

• A company that operates in many countries

• A government agency