SOL Recap

Which of the following statements wrt SOL is false?

• Material SOL is concerned about tangible goods and services that can be consumed

• Non material SOL is concerned about the ‘intangibles’

• Changes in non-material SOL can affect material SOL

• When material SOL increases, non-material SOL must increase

Which of the following are national income statistics?

• GDP and unemployment rates

• GDP and GNI

• GNI and inflation rates

• Unemployment and inflation rates

The key difference between GDP and GNI is

• Only GNI accounts for all incomes that are earned within the geographical boundary of a country

• Only GNI accounts for net factor income from abroad

• Only GDP accounts for citizen’s incomes that are earned abroad

• Only GDP can be calculated on a per capita basis

To measure how the size of a country’s economy changes over time, we should use

• Real GDP

• Real GDP per capita

• Real GNI

• Real GNI per capita

“Discuss whether Singapore or Malaysia has a higher living standard in 2021.” Which would be the most useful indicator?

• GNI per capita

• GDP per capita

• Real GNI per capita

• PPP-adjusted GNI per capita

Which of the following statement is true of real and nominal GNI

• A change in real GNI must be due to a change in output levels

• A change in real GNI must be due to a change in price levels

• A change in nominal GNI must be due to a change in output levels

• A change in nominal GNI must be due to a change in price levels

All the following issues will cause GDP measurements to understate the true material standard of living, except for….

• High degree of underground activities

• Difficulty in collecting data from rural areas

• Non-marketed activities

• High levels of income inequality

Which of the following statements about the HDI is false?

• HDI stands for Human Development Index

• HDI is able to give an indication of both material and non-material SOL

• When GDP increases, we would expect the HDI to increase

• When adult literacy increases, we would expect the HDI to increase