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.
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