Consumption spending does not include _____.

1. 1. Household’s purchases of food
   2. Household’s purchase of a car
   3. Household’s payment of rent for an apartment
   4. Household’s purchase of stock in any XYZ corporation

GNP is _____.

1. 1. total sales in the economy
   2. total monetary transactions in an economy
   3. total spending in an economy
   4. the market value of all goods and services produced in an economy

Net Investment is _____.

1. 1. Gross Investment minus household Investment
   2. Gross Investment minus capital consumption allowance
   3. Gross Investment minus government investment
   4. None of these

Transfer payments means _____.

1. 1. Bank loans
   2. The payment without work 
   3. Tax payments
   4. Payments made to all factors of production

We measure national income by _____.

1. 1. expenditure method
   2. income method
   3. product method
   4. All of these

The four factor payment are _____.

1. 1. money, capital, salaries, and income
   2. money, power, prestige, and wealth
   3. wages, rent, interest, and profits
   4. wages, interest, salaries, and income

GNP is always _____.

1. 1. less than NNP
   2. greater than NNP
   3. Equal to NNP
   4. Any of i, ii, iii

To determine the correct level of GNP, it is necessary to _____.

1. 1. add up the values of goods and services during one year
   2. add up all savings
   3. count all imports
   4. to add up the value of semi-finished goods

Who wrote ‘Das Capital’, the book that gave birth to Communism?

1. 1. Karl Marx
   2. David Ricardo
   3. Lenin
   4. J S Mill

Who is a “Lame Duck” in a stock market?

1. 1. A naive investor
   2. A new investor
   3. A member of the stock exchange who cannot meet his obligations
   4. A member of the stock exchange who is engaged in insider trading