CHAPTER 9 EXERCISES

Name: JANINE A. POLISON Score: __________________

Year/Course/Section: MM 1-A Schedule: MON/THURS 4-5:30

Write TRUE if the statement is correct and FALSE if it is wrong.

TRUE 1. Gross investment is the total output of investment goods.

TRUE 2. Increases in a stock of goods of business firms constitute an addition to the economy’s stock
of productive instruments.

FALSE 3. A negative statistical discrepancy means that GNP estimate of expenditures approach is
understated.

TRUE 4. Salary remittances of Filipinos working abroad constitute an inflow to our economy.

FALSE 5. When export is lesser than import, unfavourable balance of trade experienced.

FALSE 6. Profit remittances of foreign investors investing in our country contribute to positive net
factor income from abroad.

TRUE 7. Replacement investment is deducted from net investment.

TRUE 8. A negative net factor income from abroad happens when import is greater than export.

FALSE 9. Indirect taxes and depreciation are included in the final market prices of goods.

FALSE 10. Import minus export is net export.

IDENTIFICATION:

Statictical Discrepancy 1. An account used to even out the practical difference between the two
approaches in GNP accounting.

Income of Person(PY) 2. Direct pay for labor in an organized enterprise whether public or private.

National Income 3. The sum total of factor income of persons, government income from capital and
corporate income.

Indirect Taxes (IT) 4. The tax paid on the sale of production of product or service which is usually.

Subsidies 5. The amount deducted from indirect tax which is also refers to the financial help granted
by the government to public and private enterprises.

Balance of Trade 6. The ration between a country’s import to export.

Capital Consumption Allowance of Depreciation allowance (DA) 7. Fee for the present use of
machines and building that have been installed in the past.

Consumption Goods and Services (C) 8. These constitute the largest part of a nation’s current
flow of output.

Investment Goods (I) 9. Component of GNP Accounting expenditure which refers to the goods which
are used to produced more goods and services.

Corporate Income (CY) 10. The undistributed income of the corporations which are used for the
company’s expansion program or to boosts their operational capabilities.