Using the expenditure approach, gross domestic product is calculated as:
Correct answer: A. Private consumption + investment + government spending + net exports
- A. Private consumption + investment + government spending + net exports
- B. Private consumption + saving + taxation + imports
- C. Wages + rent + interest + profits + depreciation
- D. Exports + imports + government revenue + private saving
Explanation
The expenditure approach adds consumption, investment, government spending and net exports. Net exports mean exports minus imports, so imports are subtracted from total expenditure.
Last updated
About Economy of Pakistan
Pakistan's economy is examined through agriculture, industry, services, trade, remittances, employment, population, poverty and regional development. The topic also covers GDP and national income, inflation, fiscal and monetary policy, taxation, public debt, the balance of payments, energy constraints and structural challenges, including the role of the State Bank and development planning.
Practise Economy of Pakistan
38 free Economy of Pakistan MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Economics questions like this
Economics is on this paper prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for it.
Related questions
A demographic dividend is most likely when a country has:
A depreciation of the Pakistani rupee, other conditions remaining unchanged, is most likely to:
A general rise in prices caused mainly by higher fuel, wage or raw material costs is called:
A government's fiscal deficit is most accurately described as the excess of:
A persistent increase in the share of government revenue devoted to interest payments most directly reduces the funds available for: