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AP Intermediate 2nd Year National Income Accounting — practice questions

Explore 7 free National Income Accounting questions in AP Intermediate 2nd Year Economics. Open each question or exercise to read its content, reference answers and available explanation.

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National Income Accounting questions and exercises with answers

Showing questions 1–7 of 7.

What are goods meant for final use, passing through no more production stages, called?Read the answer and worked solution →Steel sheets bought to make automobiles are an example of which kind of good?Read the answer and worked solution →What common measuring rod lets us add up cloth, rice and machines in national output?Read the answer and worked solution →Why does GDP count only final goods and not intermediate goods?Read the answer and worked solution →Which kind of variable is defined over a period of time, like annual output?Read the answer and worked solution →Stock variables are measured at which of the following?Read the answer and worked solution →A tap fills a tank. The water in the tank at one instant is a what?Read the answer and worked solution →

Worked practice questions

What are goods meant for final use, passing through no more production stages, called?

  1. Capital stock items
  2. Final goods for use
  3. Intermediate goods
  4. Gross inventories
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Correct answer: B. Final goods for use

A good that will not pass through any more stages of production or transformation is by definition a final good.

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Steel sheets bought to make automobiles are an example of which kind of good?

  1. Intermediate goods
  2. Capital goods used
  3. Consumer durables
  4. Final goods sold
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Correct answer: A. Intermediate goods

Steel sheets are raw material used up in making another product, so they are intermediate goods.

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What common measuring rod lets us add up cloth, rice and machines in national output?

  1. Labour hours used
  2. Number of units
  3. Money value
  4. Weight in tonnes
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Correct answer: C. Money value

Different goods cannot be added in physical units, so their money value is the common yardstick.

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