political science summative review game

What is the Gini Index/Coefficient?

•  a. A measure of overall economic output 

• b. A formula that measures the level of inflation in a society 

• c. A measure of the difference between the GNP and GDP 

• d. A formula that measures the amount of inequality in a society

What is the difference between GDP and GNP? 

• a. GDP measures the total market value of all goods and services produced by a country, while GNP measures money, products, and services for a state regardless of location 

• b. GDP and GNP are kind of the same thing

• c. none of the above

• d. GDP measures the change in pricing over a period of time, while GNP measures the buying power of income 

What is the Consumer Price Index (CPI)? 

• a. A measure of overall economic output 

• b. A formula that measures the level of inflation in a society

• c. A measure of the difference between the GNP and GDP 

• d. A statistical tool that attempts to evaluate the overall wealth, health, and knowledge of a country's people

What is the Human Development Index (HDI)? 

• a. A measure of overall economic output 

• b. A statistical tool that attempts to evaluate the overall wealth, health, and knowledge of a country's people 

• none of the above

• both A and B

What is Purchase Power Parity (PPP)? 

•  A measure of overall economic output

• An attempt to estimate the buying power of income in each country by comparing similar costs using the US as a benchmark

• A measure of the difference between the GNP and GDP 

• A statistical tool that attempts to evaluate the overall wealth, health, and knowledge of a country's people

What are public goods and services?

• a. Goods and services produced by the government for personal use

• b. Goods and services produced by private companies for personal use

• c. Goods and services that markets will not provide in sufficient quantities

• d. Goods and services that are only available to people with higher incomes

What are negative externalities?

• a. Costs associated with production or consumption that "spill over" to third parties

• b. Benefits associated with production or consumption that "spill over" to third parties

• c. Benefits that are only available to people with higher incomes

• d. Costs that are only associated with the production of public goods and services

What is one way in which the government can stabilize the economy?

• a. Reducing unemployment only

• b. Reducing inflation only

• c. Promoting economic growth only

• d. all of the above

What is the purpose of antitrust laws?

• a. To create natural monopolies

• b. To regulate markets only

• c. To maintain competition and regulate natural monopolies

• d. To eliminate competition completely

What is the purpose of redistributing income?

• a. To keep all income in the hands of the government

• b. To redistribute income from lower to higher-income individuals

• c. To redistribute income from unemployed people to employed people

• d. To redistribute income from higher to lower-income individuals