College of Accountancy

Eco 1- Basic Economics (w/TAR)

Name: Date:
Schedule: Score:
Multiple Choice : Choose the letter of the best answer.
1. National income accounting(NIA) measures the aggregate (total) output as well
as the aggregate (total) income in an economy. Below are the main concepts of it
except:
A. CPA C. GNP
B. PCI D. GDP

2. Rea received a 20,000 pesos salary in working as a call center agent. What
category of income does her salary belong?
A. Corporate income C. Government income
B. Personal income D. Partnership income

3. Disposable income is the income left after the payment of direct taxes from
personal income. It can be expressed as:
A. DI=PI/Direct Taxes C. DI= PI-Direct Taxes
B. DI=PI+Direct Taxes D. DI=PIxDirect Taxes

4. Personal income is the aggregate income received by household in the

economy. It represents by?
A. income earned by incorporated entities C. governmental profit
B. income earned in partnership and corporation D. wages and salaries

5. GDP is the money value of all final goods and services produced within the
domestic territory of a country during a year. It includes the following types of
final goods and services, except:
A. Net factor income from abroad
B. Gross private domestic investment in capital goods.
C. Government expenditure.
D. Consumer goods and services.
6. PCI of a country is derived by dividing the national income of the country by the
total population of a country. PCI means:
A. Product Capita Income C. Per Capital Income
B. Per Capita Income D. Product Capital Income

7. There are various concepts of National Income that explain about the
phenomenon of economic activities of the various sectors of economy. What is
the most important concept of National Income?
A. Gross Domestic Product (GDP) C. Gross National Product (GNP)
B.Net National Product (NNP) D. National Income (NI)

8. Per Capita Income of a country is derived by dividing the national income of the
country by the total population of a country. Thus, it can be express as:
A. PCI= Income/ Population
B. PCI= Population / Income
C. PCI=Total National Income/Total National Population
D. PCI= Total National Population/ Total National Income

9. The real GNP is the representation of GNP in quantity or in physical terms while
The nominal GNP is the representation of?
A. GNP in production terms C. GNP in physical terms
B. GNP in output terms D. GNP in monetary terms

10. GNP refers to the market value of all final goods and services produced by the
resources of the economy during a given period of time. Below are the purposes
of it except?
A. GNP is a service activity.
B. GNP figures show the structure of production according to end use and factor
contribution.
C. GNP is a measure of aggregate economic activities as required by Economic
Planning and Policy Making.
D.GNP reflects the value of the economy’s production.