Economics Mcqs
How is your purchase in Pakistan of a Rs40,000 BMW automobile that was produced entirely in Germany recorded in the Pakistan’s GDP accounts ?

A. Consumption in increase by rs40,000 and net export decreases by rs40,000
B. Net exports increase by rs40,000
C. There is no impact because this transaction does not involve domestic production
D. Investment increased by rs40,000 and net exports increases by rs40,000

If your grandparents buy a newly built retirement home, this transaction would affect ?

A. Investment
B. Net exports
C. Government purchases
D. Consumption

Net National Product equals ?

A. Gross national product adjusted for inflation
B. Gross domestic product adjusted for inflation
C. Gross domestic product plus net property income from abroad
D. Gross national product minus depreciation

If nominal GDP in 2005 exceeds nominal GDP in 2004, then the production of output ?

A. Must have fallen
B. Must have risen
C. Must have stayed the same
D. May have risen fallen, or stayed the same because there is not enough information to determine what happened to real output

GDP would include which of the following ?

A. The value of taking a day off from work
B. Consulting services
C. Intermediate sales
D. Illegal drug sales

An example of a transfer payment is ?

A. Profit
B. Rent
C. Unemployment benefits
D. Government purchases

Which of the following would be excluded from UK GDP fro 2005? The sale of ?

A. A haircut
B. The value of a lawyer’s services
C. A 2005 honda made in swindon
D. All of things mentioned in these answers should be counted in 2005 gdp.

Pakistan’s Gross Domestic Product (in contrast to Gross National Product) measures the production and income of ?

A. Pakistan -owned firms no matter where they are located in the world
B. The domestic manufacturing sector only
C. The domestic service sector only
D. People and factories located within the borders of the pakistan

GDP plus net property income from abroad equals what ?

A. Gnp
B. Nnp
C. Depreciation
D. Real gdp

To adjust GDP from market prices to factor cost ?

A. Add indirect taxes
B. Subtract subsidies
C. Deduct indirect taxes and subsidies
D. Deduct indirect taxes and add subsidies