Which two of the following are excluded when measuring National income?
Value added in the output method
Transfer payments in the income method
Value of intermediate inputs in the output method
Consumer spending in the expenditure method
Real GDP measures income
Including non market activities
Adjusted for inflation
Including externalities
Including tax evasion
If the government increases spending and raises taxes by just enough to finance this increase it will
Leave output unchanged
Increase output
Reduce output
Increase the MPC
To move from GDP to GNP we must add to GDP the
Depreciation of plant and equipment
Subsidies minus taxes
Net property income from abroad
Taxes minus subsidies
Injections in to the circular flow are
Consumption, investment,exports
Investment,exports,transfer payments
Investment, government expenditure exports
Taxes exports,transfer payments
Leakages from the circular flow are
Investment , savings, government expenditure
Savings,taxes,net of subsidies, imports
Consumption, investment, government expenditure
Consumption , taxes,imports
Identify which one among is income earned
Donation to the poor
Old age pension
Scholarship
Salary to the typist
Flow of goods and services between firms and households are
Real flow
Money flow
Flow of capital
Consumption of fixed capital is also known as
Capital formation
Depreciation
All the above
Option 4 Goes Here
In the circular flow we would expect leakages to _______ injections.
Equal
Be lessthan
Be greaterthan
Be less or greater than
