National Income and Product Measurement Methods

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What is the important thing to remember in connection with the concept of GNP?

Goods and services are not valued in GNP

Goods and services may be valued either at market price or at factor price (correct)

Goods and services valued at market price only

Goods and services valued at factor price only

What are the three methods used to measure national product?

Demand method, Supply method, Distribution method

GDP method, Inflation method, Investment method

Product method, Income method, Expenditure or outlay method (correct)

Market method, Consumer method, Producer method

Which two kinds of output are included in the definition of gross national product (GNP)?

Goods and services produced by the national factors of production within the country’s borders, Goods and services produced by nationals outside the country’s borders in foreign countries (correct)

Goods produced by nationals outside the country’s borders in foreign countries, Services produced by the national factors of production within the country’s borders

Goods produced by the national factors of production within the country’s borders, Services produced by nationals outside the country’s borders in foreign countries

Goods and services produced only by the national factors of production within the country’s borders, Goods and services produced only by nationals outside the country’s borders in foreign countries