[amp_mcq option1=”Gross domestic product” option2=”Net domestic product” option3=”Net national product” option4=”Per capita real income” correct=”option4″]<\/p>\n
The correct answer is D. Per capita real income.<\/p>\n
Per capita real income is a measure of the average income of a country’s citizens, adjusted for inflation. It is calculated by dividing the country’s gross national income (GNI) by its population. GNI is the total value of all goods and services produced by a country’s residents in a year, plus income received from abroad, minus income paid to foreigners.<\/p>\n
Per capita real income is a good measure of economic progress because it takes into account both the size of a country’s economy and the standard of living of its citizens. A country with a high per capita real income is likely to have a strong economy and a high standard of living.<\/p>\n
A. Gross domestic product (GDP) is the total value of all goods and services produced within a country’s borders in a year. GDP is a good measure of the size of a country’s economy, but it does not take into account the distribution of income. A country with a high GDP may have a high standard of living for some of its citizens, but a low standard of living for others.<\/p>\n
B. Net domestic product (NDP) is equal to GDP minus depreciation. Depreciation is the decrease in the value of capital goods over time. NDP is a better measure of economic progress than GDP because it takes into account the fact that capital goods wear out over time.<\/p>\n
C. Net national product (NNP) is equal to NDP plus net income from abroad. Net income from abroad is the income that a country’s residents earn from investments abroad, minus the income that foreigners earn from investments in the country. NNP is a better measure of economic progress than NDP because it takes into account the income that a country’s residents earn from abroad.<\/p>\n
In conclusion, the correct answer is D. Per capita real income. Per capita real income is a good measure of economic progress because it takes into account both the size of a country’s economy and the standard of living of its citizens.<\/p>\n","protected":false},"excerpt":{"rendered":"
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