GDP at market prices is the sum of Consumption, Investment, Government Spending and Net Exports. „Net‟ exports is (a) Gross exports minus depreciation ; (b) Exports minus imports ; (c) Gross exports earnings minus capital inflow ; (d) Export minus imports of merchandize

GDP at market prices is the sum of Consumption, Investment, Government Spending and Net Exports. „Net‟ exports is (a) Gross exports minus depreciation ; (b) Exports minus imports ; (c) Gross exports earnings minus capital inflow ; (d) Export minus imports of merchandize 
by

1 Answer

Answer :

(b) Exports minus imports ;
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GDP at factor cost exceeds GDP at market price (a) When the factor income from abroad is negative ; (b) When depreciation on fixed capital exceeds income in investment; (c) When direct tax exceeds indirect tax ; (d) When subsidies exceeds indirect taxes.

Description : GDP at factor cost exceeds GDP at market price (a) When the factor income from abroad is negative ; (b) When depreciation on fixed capital exceeds income in investment; (c) When direct tax exceeds indirect tax ; (d) When subsidies exceeds indirect taxes.

Last Answer : (d) When subsidies exceeds indirect taxes. 

Nominal GDP is (a) The total value of goods and services net of exports (b) The total value of goods and services produced during periods of low unemployment (c) The total value of goods and services measured at current prices (d) The total value of goods and services produced at full employment.

Description : Nominal GDP is (a) The total value of goods and services net of exports (b) The total value of goods and services produced during periods of low unemployment (c) The total value of goods and services measured at current prices (d) The total value of goods and services produced at full employment.

Last Answer : (c) The total value of goods and services measured at current prices

The difference between Gross National Product (GNP) and Gross Domestic Product GDP) is (a) Excess of subsidies over indirect taxes ; (b) Depreciation ; (c) Net foreign income from abroad (d) Excess of indirect taxes over subsidies

Description : The difference between Gross National Product (GNP) and Gross Domestic Product GDP) is (a) Excess of subsidies over indirect taxes ; (b) Depreciation ; (c) Net foreign income from abroad (d) Excess of indirect taxes over subsidies

Last Answer :  (c) Net foreign income from abroad

Which of the following is not a component of GDP? (a) Government spending (b) Investment © Interest (d) Net exports

Description : Which of the following is not a component of GDP? (a) Government spending (b) Investment © Interest (d) Net exports

Last Answer : © Interest

The _____________ is the difference in value between a nation's exports and its imports 1. balance of payments 2. export / import ratio 3. gross domestic product 4. net trade value 5. balance of trade

Description : The _____________ is the difference in value between a nation's exports and its imports 1. balance of payments 2. export / import ratio 3. gross domestic product 4. net trade value 5. balance of trade

Last Answer : balance of trade

e __________ is the difference in value between a nation's exports and its imports. A)balance of payments B)export/import ratio C)gross domestic product D)net trade value E)balance of trade

Description : e __________ is the difference in value between a nation's exports and its imports. A)balance of payments B)export/import ratio C)gross domestic product D)net trade value E)balance of trade

Last Answer : A)balance of payments

“Crowding out” means that a. a government budget deficit lowers interest rates and causes investment spending to rise b. an increase in marginal tax rates lowers production c. a government budget deficit raises interest rates and causes investment spending to fall d. a government budget deficit raises American exports and lowers American imports

Description : Crowding out means that a. a government budget deficit lowers interest rates and causes investment spending to rise b. an increase in marginal tax rates lowers production c. a government ... spending to fall d. a government budget deficit raises American exports and lowers American imports

Last Answer : c. a government budget deficit raises interest rates and causes investment spending to fall

10. “Crowding out” means that a. a government budget deficit lowers interest rates and causes investment spending to rise b. an increase in marginal tax rates lowers production c. a government budget deficit raises interest rates and causes investment spending to fall d. a government budget deficit raises American exports and lowers American imports

Description : 10. Crowding out means that a. a government budget deficit lowers interest rates and causes investment spending to rise b. an increase in marginal tax rates lowers production c. a ... investment spending to fall d. a government budget deficit raises American exports and lowers American imports

Last Answer : c. a government budget deficit raises interest rates and causes investment spending to fall

All entries in the balance of payments should collectively sum to (a) GDP of that country ; (b) GNP of that country ; (c) Zero ; (d) Exports of that country.

Description : All entries in the balance of payments should collectively sum to (a) GDP of that country ; (b) GNP of that country ; (c) Zero ; (d) Exports of that country. 

Last Answer :  (c) Zero

Net factor income from abroad is equal to (a) NNP at market price – NDP at market price ; (b) NDP at market prices – Indirect taxes + Subsidies ; (c) NDP at factor cost + Depreciation ; (d) NNP at market prices + Depreciation

Description : Net factor income from abroad is equal to (a) NNP at market price – NDP at market price ; (b) NDP at market prices – Indirect taxes + Subsidies ; (c) NDP at factor cost + Depreciation ; (d) NNP at market prices + Depreciation

Last Answer : (a) NNP at market price – NDP at market price ;

If we add……………. to net domestic production we get GDP (a) Depreciation ; (b) Direct tax ; (c) Indirect tax ; (d) Interest payment

Description : If we add……………. to net domestic production we get GDP (a) Depreciation ; (b) Direct tax ; (c) Indirect tax ; (d) Interest payment

Last Answer : (a) Depreciation ;

GDP is defined as (a) The market value of all goods and services produced in the domestic economy during the year ; (b) Current value of all the capital goods produced in the country. ; (c) Sum of goods and services exported during the year. ; (d) All the capital goods and consumable goods produced and sold during the year

Description : GDP is defined as (a) The market value of all goods and services produced in the domestic economy during the year ; (b) Current value of all the capital goods produced in the country. ; (c) ... during the year. ; (d) All the capital goods and consumable goods produced and sold during the year

Last Answer : (a) The market value of all goods and services produced in the domestic economy during the year ; 

Trade Gap means A. Gap between total GDP and total consumption B. Gap between total imports and total exports C. Gap between available liquidity and expected demand in next five months D. Gap between budgeted revenue collection and actual collection of the same E. None of the above

Description : Trade Gap means A. Gap between total GDP and total consumption B. Gap between total imports and total exports C. Gap between available liquidity and expected demand in next five months D. Gap between budgeted revenue collection and actual collection of the same E. None of the above

Last Answer : B. Gap between total imports and total exports Explanation: The amount by which the value of a country‘s visible imports exceeds that of visible exports; an unfavourable balance of trade.

Balance of trade is (a) The difference between balance on current account and capital account (b) Same as the balance of merchandize trade ; (c) Same as the balance of current account (d) Overall BoP balance.

Description : Balance of trade is (a) The difference between balance on current account and capital account (b) Same as the balance of merchandize trade ; (c) Same as the balance of current account (d) Overall BoP balance.

Last Answer : (b) Same as the balance of merchandize trade ;

What is the sum total of gross value added of all the firms in the country minus the depreciation? a) Gross Domestic Product b) Gross National Product c) Net Domestic Product d) Net National product

Description : What is the sum total of gross value added of all the firms in the country minus the depreciation? a) Gross Domestic Product b) Gross National Product c) Net Domestic Product d) Net National product

Last Answer : c) Net Domestic Product

Which of the following equation is correct? (a) GNP=GDP+Net factor income from abroad (b) GNP=GDP+Gross factor income from abroad (c) GNP=GDP-Net factor income from abroad (d) GNP=GDP-Gross factor income from abroad

Description : Which of the following equation is correct? (a) GNP=GDP+Net factor income from abroad (b) GNP=GDP+Gross factor income from abroad (c) GNP=GDP-Net factor income from abroad (d) GNP=GDP-Gross factor income from abroad

Last Answer : (a) GNP=GDP+Net factor income from abroad 

Consumption demand does not depend upon the level of (a) Income ; (b) Propensity to consume ; (c) Consumer spending ; (d) Marginal efficiency of investment.

Description : Consumption demand does not depend upon the level of (a) Income ; (b) Propensity to consume ; (c) Consumer spending ; (d) Marginal efficiency of investment.

Last Answer : (d) Marginal efficiency of investment.  

The terms of trade measures (a) the income of a country compared to another (b) The GDP of a country compared to another © The quantity of exports of a country compared to another (d) Export prices compared to import prices.

Description : The terms of trade measures (a) the income of a country compared to another (b) The GDP of a country compared to another © The quantity of exports of a country compared to another (d) Export prices compared to import prices.

Last Answer : (d) Export prices compared to import prices.

If GDP exceeds GNP the possible reasons could be (a) Foreigners are earning more in India than Indians are earning in foreign countries (b) High incidence of plant and machinery wear out (c) Indian are earning more in foreign countries than foreigners earnings in India (d) None

Description : If GDP exceeds GNP the possible reasons could be (a) Foreigners are earning more in India than Indians are earning in foreign countries (b) High incidence of plant and machinery wear out (c) Indian are earning more in foreign countries than foreigners earnings in India (d) None

Last Answer : (a) Foreigners are earning more in India than Indians are earning in foreign countries 

Inflationary conditions may co-exist with which of the following situation (a) Increase in factor cost ; (b) Increase in employment opportunities; (c) Growth in GDP and imports ; (d) All the three

Description : Inflationary conditions may co-exist with which of the following situation (a) Increase in factor cost ; (b) Increase in employment opportunities; (c) Growth in GDP and imports ; (d) All the three 

Last Answer : ; (d) All the three

GDP can be defined as sum of the market value of the……….. (a) Final manufactured goods and services ; (b) Intermediate goods (c) Goods and services exported ; (d) Sub-standard goods and discarded services

Description : GDP can be defined as sum of the market value of the……….. (a) Final manufactured goods and services ; (b) Intermediate goods (c) Goods and services exported ; (d) Sub-standard goods and discarded services 

Last Answer : (a) Final manufactured goods and services ;

Net National Product of a country is - (1) GDP minus depreciation allowances (2) GDP plus net income from abroad (3) GNP minus net income from abroad (4) GNP minus depreciation allowances

Description : Net National Product of a country is - (1) GDP minus depreciation allowances (2) GDP plus net income from abroad (3) GNP minus net income from abroad (4) GNP minus depreciation allowances

Last Answer : (4) GNP minus depreciation allowances Explanation: Net national product (NNP) is the total market value of all final goods and services produced by residents in a country or other polity during a given ... and NDP is equal to gross domestic product (GDP) minus depreciation: NDP = GDP - depreciation.

Net National Product of a country is (1) GDP minus depreciation allowances (2) GDP plus net income from abroad (3) GNP minus net income from abroad (4) GNP minus depreciation allowances

Description : Net National Product of a country is (1) GDP minus depreciation allowances (2) GDP plus net income from abroad (3) GNP minus net income from abroad (4) GNP minus depreciation allowances

Last Answer :  GNP minus depreciation allowances

The difference between gross investment and net investment is (a) Depreciation (b) Acceleration © Deceleration (d) Capital investment

Description : The difference between gross investment and net investment is (a) Depreciation (b) Acceleration © Deceleration (d) Capital investment

Last Answer : (a) Depreciation

If Nominal GDP is 11% and Real GDP is 6%, then the difference of 5% represent (a) Depreciation ; (b) Rate of inflation ; (c) Rate of interest ; (d) Tax burden

Description : If Nominal GDP is 11% and Real GDP is 6%, then the difference of 5% represent (a) Depreciation ; (b) Rate of inflation ; (c) Rate of interest ; (d) Tax burden

Last Answer : (b) Rate of inflation ;

Which of the following equation is correct (a) NDP=GDP- Depreciation ; (b) NDP=GDP+ Depreciation ; (b) NDP=GDP- Depreciation-subsidy; (d) NDP=GDP- Depreciation+subsidy

Description : Which of the following equation is correct (a) NDP=GDP- Depreciation ; (b) NDP=GDP+ Depreciation ; (b) NDP=GDP- Depreciation-subsidy; (d) NDP=GDP- Depreciation+subsidy

Last Answer : (a) NDP=GDP- Depreciation ;

Nominal GDP is A. The total value of goods and services net of exports B. The total value of goods and services produced during periods of low unemployment C. The total value of goods and services measured at current prices D. The total value of goods and services produced at full employment.

Description : Nominal GDP is A. The total value of goods and services net of exports B. The total value of goods and services produced during periods of low unemployment C. The total value of goods and services measured at current prices D. The total value of goods and services produced at full employment.

Last Answer : C. The total value of goods and services measured at current prices

For GDP purposes, do economists classify education spending as consumption, investment, or gov't spending?

Description : For GDP purposes, do economists classify education spending as consumption, investment, or gov't spending?

Last Answer : I don't think you can make that kind of generalization, lumping public and private education together. I've only taken AP Macroeconomics so I'm certainly no expert, but I would think that publicly ... though, that's a large generalization, the types of spending would have to be further broken down.

The opportunity cost of capital investment is (a) Sacrifice of current consumption ; (b) More consumption on luxury items; (c) Lower capital growth in future ; (d) Wastage of Resources

Description : The opportunity cost of capital investment is (a) Sacrifice of current consumption ; (b) More consumption on luxury items; (c) Lower capital growth in future ; (d) Wastage of Resources

Last Answer : (a) Sacrifice of current consumption

The opportunity cost of consumption is (a) Lack of capital formation for future ; (b) Greater investment ; (c) Full employment ; (d) Deflation

Description : The opportunity cost of consumption is (a) Lack of capital formation for future ; (b) Greater investment ; (c) Full employment ; (d) Deflation

Last Answer : (a) Lack of capital formation for future ;

What is the Gross National Product minus the depreciation? a) Gross Domestic Product b) Gross National Product c) Net Domestic Product d) Net National product

Description : What is the Gross National Product minus the depreciation? a) Gross Domestic Product b) Gross National Product c) Net Domestic Product d) Net National product

Last Answer : d) Net National product

Deflation is a state when (a) Prices are falling ; (b) Consistent increase in prices ; (c) Fall in GDP ; (d) Collapse of sensex

Description : Deflation is a state when (a) Prices are falling ; (b) Consistent increase in prices ; (c) Fall in GDP ; (d) Collapse of sensex 

Last Answer : (a) Prices are falling ;

Nominal GDP is measured in ………………..prices (a) Base year ; (b) Current year ; (c) 1980 ; (d) 2000

Description : Nominal GDP is measured in ………………..prices (a) Base year ; (b) Current year ; (c) 1980 ; (d) 2000

Last Answer : (b) Current year ;

Real GDP is measured in………….prices (a) Base year ; (b) Current year ; (c) 1980 ; (d) 2000

Description : Real GDP is measured in………….prices (a) Base year ; (b) Current year ; (c) 1980 ; (d) 2000

Last Answer : Base year

If in 2000 nominal GDP is = `70000 Crore and the prices in 2000 were 40% more than the real GDP in 2000 using 1996 as a base year is (a) `45,000 Crore ; (b) `50,000 Crore ; (c) `42,000 Crore ; (d) `98000 Crore

Description : If in 2000 nominal GDP is = `70000 Crore and the prices in 2000 were 40% more than the real GDP in 2000 using 1996 as a base year is (a) `45,000 Crore ; (b) `50,000 Crore ; (c) `42,000 Crore ; (d) `98000 Crore

Last Answer : (b) `50,000 Crore ;

If we add……………. to national income we get NDP (a) Depreciation ; (b) Net foreign factor income ; (c) Indirect-tax ; (d) Transfer payment

Description : If we add……………. to national income we get NDP (a) Depreciation ; (b) Net foreign factor income ; (c) Indirect-tax ; (d) Transfer payment

Last Answer : (b) Net foreign factor income ;

Which of the following is least likely to be part of the calculation of the terminal- year incremental net cash flow for an energy-related expansion project? A. An initial working capital investment is now returned as an additional cash inflow B. Disposal/reclamation costs C. Capitalized expenditures D. Salvage value of any sold or disposed assets

Description : Which of the following is least likely to be part of the calculation of the terminal- year incremental net cash flow for an energy-related expansion project? A. An initial working capital ... Disposal/reclamation costs C. Capitalized expenditures D. Salvage value of any sold or disposed assets

Last Answer : D. Salvage value of any sold or disposed assets

The balance of payments of a country on current account is equal to A. Balance of trade plus short term B. Balance of trade plus net invisible exports C. Balance of payment minus capital flows

Description : The balance of payments of a country on current account is equal to A. Balance of trade plus short term B. Balance of trade plus net invisible exports C. Balance of payment minus capital flows

Last Answer : Balance of trade plus net invisible exports

The difference between the Gross value added and Net value added is: a) Investment b) Value added c) Production flow d) Depreciation

Description : The difference between the Gross value added and Net value added is: a) Investment b) Value added c) Production flow d) Depreciation

Last Answer : d) Depreciation

What does the term Gross investment mean while denoting a nation'seconomy?a) Gross investment= Net investment + Depreciationb) Gross investment= Net investment - Depreciationc) Gross investment= Depreciation - Net investmentd) None of the above

Description : What does the term Gross investment mean while denoting a nation'seconomy? a) Gross investment= Net investment + Depreciation b) Gross investment= Net investment - Depreciation c) Gross investment= Depreciation - Net investment d) None of the above

Last Answer : a) Gross investment= Net investment + Depreciation

6. Assume that Potential Real GDP equals $10,000. National Income is therefore $10,000. Of this, consumers will pay $2,000 in taxes, save $1,000, and spend $7,000 on consumer goods. Business Investment spending is $2000. In order to avoid recessions and inflation (to have equilibrium), the government should have a: a. balanced budget b. budget deficit of $1000 c. budget surplus of $1000 d. budget deficit of $2000 C C A A C

Description : 6. Assume that Potential Real GDP equals $10,000. National Income is therefore $10,000. Of this, consumers will pay $2,000 in taxes, save $1,000, and spend $7,000 on consumer goods. Business Investment ... . budget deficit of $1000 c. budget surplus of $1000 d. budget deficit of $2000 C C A A C

Last Answer : c. budget surplus of $1000

Gains from trade can be divided into two parts (a) gains from exports and gains from imports. (b) gains from specialization and gains from exchange. © gains from consumption and gains from production. (d) gains from profit and gains from loss.

Description : Gains from trade can be divided into two parts (a) gains from exports and gains from imports. (b) gains from specialization and gains from exchange. © gains from consumption and gains from production. (d) gains from profit and gains from loss.

Last Answer : (b) gains from specialization and gains from exchange.

Terms of trade of a country show A. Ratio of goods exported and imported B. Ratio of import duties C. Ratio of prices of exports and imports D. (a) and (c) as given above

Description : Terms of trade of a country show A. Ratio of goods exported and imported B. Ratio of import duties C. Ratio of prices of exports and imports D. (a) and (c) as given above

Last Answer : Ratio of prices of exports and imports

GDP at market price exceeds GDP at factor cost by the amount of revenue raised through ………………. (a) Direct taxes ; (b) Indirect taxes ; (c) Income tax ; (d) Tax on rents

Description : GDP at market price exceeds GDP at factor cost by the amount of revenue raised through ………………. (a) Direct taxes ; (b) Indirect taxes ; (c) Income tax ; (d) Tax on rents 

Last Answer : ; (b) Indirect taxes ;

On the basis of the Keynesian model of output determination, a multiplier of 3 implies that (a) An increase in consumption by `3 will result in an increase in investment by Re. 1 (b) An increase in investment by Re. 1 will result in an increase in consumption by `3 (c) An increase in investment by Re. 1 will result in an increase in consumption by `2 (d) An increase in investment by Re. 1 will result in an increase in consumption by Re. 1

Description : On the basis of the Keynesian model of output determination, a multiplier of 3 implies that (a) An increase in consumption by `3 will result in an increase in investment by Re. 1 (b) An increase in ... 2 (d) An increase in investment by Re. 1 will result in an increase in consumption by Re. 1

Last Answer : (c) An increase in investment by Re. 1 will result in an increase in consumption by `2 

In free economy the decision about investment, saving and consumption are decided by (a) Price mechanism ; (b) Central bank ;(c) Planning Commission ;(d) Finance budget

Description :  In free economy the decision about investment, saving and consumption are decided by (a) Price mechanism ; (b) Central bank ;(c) Planning Commission ;(d) Finance budget 

Last Answer : (a) Price mechanism

Which of the following issue relates to micro-economics (a) Impact of crude price hike on inflation (b) Impact of change in bank rate on bank saving and investment (c) Impact of Information technology on economic growth (d) Impact of shortage of wheat production on wheat prices

Description : Which of the following issue relates to micro-economics (a) Impact of crude price hike on inflation (b) Impact of change in bank rate on bank saving and investment (c) Impact of Information technology on economic growth (d) Impact of shortage of wheat production on wheat prices

Last Answer : (d) Impact of shortage of wheat production on wheat prices 

Investment is equal to : (1) gross total of all types of physical capital assets (2) gross total of all capital assets minus wear and tear (3) stock of plants, machines and equipments (4) None of the above

Description : Investment is equal to : (1) gross total of all types of physical capital assets (2) gross total of all capital assets minus wear and tear (3) stock of plants, machines and equipments (4) None of the above

Last Answer : (2) gross total of all capital assets minus wear and tear Explanation: Capital formation is frequently thought of as a measure of total "investment", in the sense of that portion of ... concept that includes investment in all kinds of capital assets, whether physical property or financial assets.

Investment is equal to - (1) gross total of all types of physical capital assets (2) gross total of all capital assets minus wear and tear (3) stock of plants, machines and equipments (4) None of these

Description : Investment is equal to - (1) gross total of all types of physical capital assets (2) gross total of all capital assets minus wear and tear (3) stock of plants, machines and equipments (4) None of these

Last Answer : (2) gross total of all capital assets minus wear and tear Explanation: Investment" is a broader concept that includes investment in all kinds of capital assets, whether physical property or financial assets. In ... out the loss in capital value of assets used due to wear & tear, obsolescence, etc.

Investment is equal to : (1) gross total of all types of physical capital assets (2) gross total of all capital assets minus wear and tear (3) stock of plants, machines and equipments (4) None of the above

Description : Investment is equal to : (1) gross total of all types of physical capital assets (2) gross total of all capital assets minus wear and tear (3) stock of plants, machines and equipments (4) None of the above

Last Answer : gross total of all capital assets minus wear and tear