GDP

Expenditure approach = consumption + _________ + government spending + net exports

• Income

• Investment

• Imports

• interest

Which of the following would be excluded from the GDP calculation?

• French wine purchased by a Trinidadian

• A bottle water purchased by consumer

• A used car

• Road built by the government

Goods that are not formally recorded such as babysitting for a neighbour is considered to be part of which sector?

• Primary

• Secondary

• Tertiary

• Informal

Which of the following is NOT a reason for depreciation?

• Passage of time

• Increase in market value

• Wear and tear

• Obsolescence

Calculating GDP by adding together factor incomes is done using which method ?

• Expenditure

• Output

• Income

• Export

Double counting avoids what?

• Overstating GDP

• Understating GDP

Which of the following is NOT a limitation of GDP?

• Income inequality

• Does not consider quality of life

• Informal sector is not counted

• Reduces pollution

Which of the following is used to measure living standards ?

• GDP a factor costs

• GDP at market value

• GDP per capita

• GNP

NNP is calculated at GNP -

• Capital consumption

• Subsidies

• Taxes

• Net property income from abroad

Negative externalities reduce quality of life. Which of the following is considered to be an externality

• Pollution

• Vaccines

• Deforestation

• Climate change