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Trends And Structure of National Income - SS2 Economics Past Questions and Answers - page 1

1

What is national income?

A

The measure of the value of all final goods and services produced within a country's borders over a specific period

B

The measure of the number of people living within a country's borders

C

The measure of the amount of money a country has in its treasury

 

D

None of the above

correct option: a
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2

What does GDP stand for?

A

Gross Domestic Product

B

Great Domestic Product

 

C

Good Domestic Product

D

None of the above

correct option: a
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3

Which of the following is a component of national income?

A

Income earned from foreign investments

B

Income earned from underground activities

 

C

Income earned from charitable donations

D

None of the above

correct option: a
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4

Which of the following can cause fluctuations in national income?

A

Technological advancements

B

Political stability

C

Economic cycles

 

D

All of the above

correct option: c
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5

Which of the following is an indication of strong business activity and potential for future growth?

A

High levels of government spending

B

High levels of consumption

C

High levels of investment spending

D

None of the above

correct option: c
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6

What does the structure of national income refer to?

The structure of national income refers to the different components that make up the total value of goods and services produced within a country, such as consumption, investment, government spending, and net exports.

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7

Why is understanding the trends and structure of national income important?

Understanding the trends and structure of national income can provide valuable insights into the economic performance of a country. It can help identify areas of strength and weakness, and inform policy decisions related to economic development and social welfare.

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