GDP

Question 1

Consumption, Government Spending, Investment, Exports, Imports of country A are given below. All figures are in $billions. C = 32 G = 15.9 I = 12.3 E = 11.8 M(imports) = 12.9 Disposable Income per capita, and Population are Yd(disposable income per capita) = $2700 P = 15 000 000 Calculate GDP of country A.

81,5 100 59.1 99.6

Question 2

A country’s net national income (NNI) is less than its gross national income (GNI). What does this mean?

incomes earned overseas were less than incomes sent overseas inflation has been accounted for in NNI but not in GNI the country’s exports decreased there has been a net depreciation in the value of the country’s fixed capital assets

Question 3

All figures are in $ billions. If country’s GDP = 35, Consumption = 18, Investment = 10, Exports = 4, Imports = 5, Taxes = 3, what was the Government spending in that year?

G=8 G=5 G=11 G=62

Question 4

Which of the following will least likely be included in measuring GDP?

Rent paid by a retailer Salary of a teacher Pensions paid by the government Profit earned by a fast food restaurant

Question 5

Suppose a potter makes a vase, for which she spends $67 on materials. She then sells it for $152 on her website. Which of the following is the value added by the potter?

$219 $95 $85 $152

Question 6

Real GDP per capita is positively correlated with all of the following except

malaria cases per capita happiness education level life expectancy

Question 7

Real GDP per capita is usually used to compare standards of living of

the same country at different points in time two different countries at one point in time the same country’s residents at one point in time a&b

Question 8

Measuring GDP using the expenditure approach includes

consumption investment government spending all of the above

Question 9

Measuring GDP using the factor income approach includes

employee compensation interest profit all of the above

Question 10

Real GDP takes into account

changes in population changes in prices changes in interest rate all of the above