Class 10

Question 1

What is national income accounting?

Answer 1

A set of rules and definitions for measuring the aggregate economy; that is, the economy as a whole

Question 2

Stock concept examples?

Answer 2

Wealth and height

Question 3

Is GDP a flow concept?

Answer 3

Yes

Question 4

Net domestic product

Answer 4

GDP adjusted for depreciation (the amount of capital used up in producing that years GDP)

Question 5

Aggregate income =

Answer 5

Aggregate production

Question 6

If increases in GDP are due t increases in prices then:

Answer 6

Economic activity has not increased

Question 7

Real GDP =

Answer 7

Nominal GDP adjusted for inflation

Real GDP = (nominal GDP/ GDP deflator) x100

Question 8

Real output =

Answer 8

(Nominal output / price index) x100

Question 9

Real Interest rate is:

Answer 9

Nominal interest rate - inflation rate

Question 10

Examples of things not counted in GDP:

Answer 10

1. Govt transfer payments
2. Sales of stocks and bonds
3. Work of spouses at home
4. The underground economy