Gross National income is always more than Net National income because it includes ?

Related Mcqs:

1. 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
   E. none of these answers

2. To adjust from Gross National Product to Net National Product ?

   A. Deduct depreciation
   B. Deduct indirect taxes
   C. Deduct subsidies
   D. Add inflation

3. If consumers always spend 15 percent of their income on food. then the income elasticity of demand for food is ?

   A. 1.50
   B. 1.15
   C. none of these
   D. 0.15
   E. 1.00

4. The World Bank’s GNP per capita classification for low income middle income and high income countries respectively is ?

   A. less than $900, $900-$9000 and more than $9000
   B. less than $5000, $5000-$15000 and more than $15000
   C. less than $100, $100-$1000 and more than $1000
   D. less than $5000, $5000-$150000 and more than $150000

5. A tax for which high income taxpayers pay a smaller fraction of their income than do low income taxpayers is known as ?

   A. a proportional tax
   B. a regressive tax
   C. an equitable tax
   D. a progressive tax

6. If the income tax rate changes from 30% to 40% on income over Rs30,000 and a person’s income is Rs 31,000 then her marginal tax rate is ?

   A. 30%
   B. 10%
   C. 70%
   D. 40%

7. In the calculation of gross domestic product net exports are ?

   A. the sum of merchandise trade and services
   B. the current account plus long-term capital
   C. the value of merchandise exports minus imports
   D. short-term capital plus the basic balance

8. The difference between gross investment and net investment is ?

   A. depreciation of the existing capital stock
   B. productive investment
   C. dwellings
   D. inventories

9. The functional distribution of income shows how national income is divided between ?

   A. employees
   B. the population
   C. the factors of production
   D. the working population

10. Which of the following is not required while computing Gross National Product (GNP) ?

    A. Net foreign investment
    B. Private investment
    C. Per capita income of citizens
    D. None of the above