Unit 3.2 - National Income Accounting - Exercise

Exercise - National Income Accounting

Very Short Answer Questions                                                             2 Marks

1. What is National Income?
2. Define GDP.
3. Write short notes on Gross National Product (GNP). 
4. What do you meant by GDP and NI. 
5. Distinguish between personal income and disposable income.
6. What is per capita income?
7. Write the formula of GDP deflator. 
8. What are the major components of GDP while calculating income by expenditure method?
9. What are the major components of national income according to income method?
10. What is meant by double counting?
11. What is the solution of the problem of double counting in the estimation of national income?
12. Point out any four difficulties in measuring national income. 

Short Answer Questions                                                                      5 Marks

1. Distinguish between GDP and GNP.
2. Distinguish between personal and disposable income.
3. Define gross domestic product (GDP) and Net National Product (NNP).
4. Define Gross Domestic Product (GDP) and Gross National Product (GNP).
5. Define nominal GDP, real GNP and GDP deflator. 
6. Distinguish between real GDP and nominal GDP. 
7. How is national income measured from product method?
8. How is national income measured by value added method?
9. Define national income. How is national income computed?
10. Briefly explain the income method of measuring national income. 
11. Briefly mention the difficulties of national income measurement. 
12. What are the special problems that are faced while calculating national income in the developing countries like Nepal?

Long Answer Questions                                                                      10 Marks

1. Define national income. Distinguish between GDP and GNP.
2. Distinguish between GDP and GNP. What are the difficulties in the management of national income?
3. Explain the concepts of GDP, GNP, NNP, NI, PI, DI and PCI. 
4. State the meaning of GDP, GNP, NI and PCI.
5. Explain nominal and real GDP with suitable examples. 
6. What is circular flow of income? Explain it with the help of a diagram. 
7. What is national income? Explain various methods of measuring national income. 
8. Explain the various methods of measuring national income. 
9. Define GDP and GNP. Explain the product method of measuring national income.
10. Define PI and DI. Explain the income method of measuring national income.
11. Define PCI. Explain the expenditure method of measuring national income. 
12. What is GNP? Explain the problems of GNP measurement. 
13. What are the measurement of national income? Explain.