QUESTION 1 Which of the following is true about GDP? GDP=consumption+investment+
ID: 1140655 • Letter: Q
Question
QUESTION 1
Which of the following is true about GDP?
GDP=consumption+investment+government spending+net exports
GNP is equal to GDP plus receipts of factor income from the rest of the world minus payments of factor income to the rest of the world
GDP stands for gross domestic product
GDP measures the market value of final goods and services produced within the border of a nation in a given period of time
All of the above
QUESTION 2
Which of the following is true?
PI=NI-income earned but not received+income received but not earned
Corporate taxes, retained earnings and social security taxes withheld are examples of income earned but not received.
GDP-depreciation=NDP (net domestic product)
DI (Disposable income)= PI-personal taxes
All of the above
QUESTION 3
Which of the following is true?
NI= GDP-capital consumption allowance+net foreign factor income
NI (National income) is equal to income earned by domestor factors of production in the form of wages, interest, rent, profits, etc
Transfer payment such as social security payment, unemployment benefits and other welfare benefits are examples of income that is received by not earned in the current year.
GDP+net factor income=GNP
All of the above
A.GDP=consumption+investment+government spending+net exports
B.GNP is equal to GDP plus receipts of factor income from the rest of the world minus payments of factor income to the rest of the world
C.GDP stands for gross domestic product
D.GDP measures the market value of final goods and services produced within the border of a nation in a given period of time
E.All of the above
Explanation / Answer
a) All the given statements are correct. GDP consists of consumption + investment + government expenditure + net export and other are just definitions.
b) All the given statements are true.
c) "A" National income = GDP - depreciation (also known as capital consumption allowance) + net foreign factor income.
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