CAPE Economics Unit 2 Multiple Choice
Form 6 Economics Unit 2 1 ½ Hours
Answer ALL questions
1. Which one of the following constitutes a leakage from the circular flow of income?
a. The purchase of a domestically produced good by a domestic company
b. The purchase of a domestically produced good by a foreign company
c. The payment of value added tax on goods sold to the domestic market
d. Government aid to companies in financial difficulties
2. Which of the following is not a reason for a country collecting national income statistics?
a. To calculate changes in the standard of living
b. To calculate the rate of the cost of living
c. To compare standards between countries
d. To estimate the rate of economic growth
3. Which one of the following is the most accurate measure of a country’s standard of living?
a. Real national income
b. Per capita real national income
c. Nominal national income
d. Per capita nominal national income
4. The name given to counting all the output produced within the geographical confines of a country is called
a. The Circular Flow of Income
b. The Circular Flow of Output
c. Per Capita Income
d. National Income Accounting
5.
6. The table shows some data from a country’s national accounts for one year
7.
8. $ millions
9. Consumers’ expenditure
10. 25 000
11. Gross investment
12. 5 000
13. Government consumption
14. 5 000
15. Exports
16. 4 000
17. Imports
18. 6 000
19. Taxes on expenditure
20. 4 000
21. Subsidies
22. 1 000
23. Net property income from abroad
24. 1 000
25. Depreciation
26. 2 000
27.
28. What is gross national product at market prices?
a. $32 000 m
b. $33 000 m
c. $34 000 m
d. $36 000 m
29. In calculating gross national product double counting can be avoided by
a. Excluding the value of intermediate goods produced
b. Deducting indirect taxes from adding subsidies to the value of output
c. Deducting the value of goods imported from the value of goods exported
d. Including the value of goods but not services produced
30. Some National
Answer ALL questions
1. Which one of the following constitutes a leakage from the circular flow of income?
a. The purchase of a domestically produced good by a domestic company
b. The purchase of a domestically produced good by a foreign company
c. The payment of value added tax on goods sold to the domestic market
d. Government aid to companies in financial difficulties
2. Which of the following is not a reason for a country collecting national income statistics?
a. To calculate changes in the standard of living
b. To calculate the rate of the cost of living
c. To compare standards between countries
d. To estimate the rate of economic growth
3. Which one of the following is the most accurate measure of a country’s standard of living?
a. Real national income
b. Per capita real national income
c. Nominal national income
d. Per capita nominal national income
4. The name given to counting all the output produced within the geographical confines of a country is called
a. The Circular Flow of Income
b. The Circular Flow of Output
c. Per Capita Income
d. National Income Accounting
5.
6. The table shows some data from a country’s national accounts for one year
7.
8. $ millions
9. Consumers’ expenditure
10. 25 000
11. Gross investment
12. 5 000
13. Government consumption
14. 5 000
15. Exports
16. 4 000
17. Imports
18. 6 000
19. Taxes on expenditure
20. 4 000
21. Subsidies
22. 1 000
23. Net property income from abroad
24. 1 000
25. Depreciation
26. 2 000
27.
28. What is gross national product at market prices?
a. $32 000 m
b. $33 000 m
c. $34 000 m
d. $36 000 m
29. In calculating gross national product double counting can be avoided by
a. Excluding the value of intermediate goods produced
b. Deducting indirect taxes from adding subsidies to the value of output
c. Deducting the value of goods imported from the value of goods exported
d. Including the value of goods but not services produced
30. Some National