Q1. The modification of Gross Domestic Product (GDP) to reflect indirect taxes and subsidies is called the:

A)   factor cost adjustment.

B)   GDP deflator.

C)   gross national income (GNI).

Q2. Which of the following statements regarding Gross Domestic Product (GDP) being reported at market prices and at factor cost is most accurate?

A)   Most countries report GDP at both market prices and factor cost.

B)   Great Britain reports GDP at market prices only, while the United States reports GDP at both market prices and factor cost.

C)   The United States reports GDP at market prices only, while Great Britain reports GDP at both market prices and factor cost.

Q3. For which of the following is gross domestic product (GDP) adjusted to calculate GDP at factor cost?

A)   Self-employment income.

B)   A value-added tax.

C)   Rental income.

答案和详解如下：

Q1. The modification of Gross Domestic Product (GDP) to reflect indirect taxes and subsidies is called the:

A)   factor cost adjustment.

B)   GDP deflator.

C)   gross national income (GNI).

Correct answer is A)

The factor cost adjustment is utilized to allow consistent comparisons of the components of the GDP measure (expenditure, income, and output) as well as to isolate the effect of certain governmental policies upon productivity.

Q2. Which of the following statements regarding Gross Domestic Product (GDP) being reported at market prices and at factor cost is most accurate?

A)   Most countries report GDP at both market prices and factor cost.

B)   Great Britain reports GDP at market prices only, while the United States reports GDP at both market prices and factor cost.

C)   The United States reports GDP at market prices only, while Great Britain reports GDP at both market prices and factor cost.

Correct answer is C)

U.S. GDP is reported at market prices, while Great Britain reports GDP both ways. Always clarify which method a country is utilizing.

Q3. For which of the following is gross domestic product (GDP) adjusted to calculate GDP at factor cost?

A)   Self-employment income.

B)   A value-added tax.

C)   Rental income.

Correct answer is B)

Factor cost adjustments to GDP include indirect taxes (such as a value-added tax) and subsidies.

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