GNP is_______________?

A. total sales in the economy
B. total monetary transactions in an economy
C. the market value of all goods and services produced in an economy
D. total spending in an economy

Net investment is___________________?

A. gross investment minus household investment
B. gross investment minus govt. investment
C. gross investment minus capital consumption allowance
D. none of the above

Consumption spending does not include ?

A. household’s purchases of food
B. households’ purchase of a car
C. household’s payment of rent for an apartment
D. household’s purchase of stock in any xyz corporation

Which of the following is a withdraw from the circular flow income stream ?

A. investment
B. subsidies
C. taxation
D. consumption

What would reduce the role of central planning in a economy ?

A. increasing government spending
B. increasing public ownership of firms
C. increasing the role of markets
D. removing the profit motive

What does price elasticity of demand measure ?

A. changes in price caused by changes in demand
B. the rate of change of sales
C. the responsiveness of demand to price changes
D. the value of sales at a given price

What is the meaning of the term stagflation ?

A. fall in prices due to less circulation of currency
B. fall in employment due to declining production
C. high inflation rate combined with high unemployment and unchanged consume demand
D. none of these

We measure national income by this method ?

A. expenditure method
B. income method
C. product method
D. all of the above

Devaluation of currency helps to promote ?

A. national income
B. saving
C. imports at lower cost
D. exports

Which company holds the world record for having the maximum number of shareholders ?

A. reliance industries ltd.
B. british gas
C. general motors
D. state bank