Macroeconomics Quiz Review #2

What is national income?

• The total amount of money spent within a country

• The total amount of money saved within a country

• The total amount of money borrowed within a country

• The total amount of money earned within a country

What do national income statistics measure?

• The value of all goods and services exported by a country

• The value of all goods and services imported by a country

• The value of all intermediate goods and services produced within a country's borders

• The value of all final goods and services produced within a country's borders

What does GDP stand for?

• Gross Net Product

• Gross National Product

• Gross Domestic Product

• Gross National Income

What does the GDP deflator measure?

• The value of all final goods and services produced within a country's borders

• The total value of all goods and services produced in a year

• The ratio of the value of goods and services produced in an economy in the current period to the value of these goods and services produced in the base year

• Inflation defined over a specific period

What is not included in GDP?

• The value of all goods and services imported by a country

• Transfer payments such as unemployment and social security

• The sale of financial assets

• The sale of used goods

What is the difference between GDP deflator and Consumer Price Index?

• CPI assumes that the quantity of the goods produced in the economy remains the same, while GDP deflator does not include any such assumption

• Neither GDP deflator nor CPI assume that the quantity of the goods produced in the economy remains the same

• Both GDP deflator and CPI assume that the quantity of the goods produced in the economy remains the same

• GDP deflator assumes that the quantity of the goods produced in the economy remains the same, while CPI does not include any such assumption

What is real GDP?

• The value of GDP divided by population size

• The value of GDP when adjusted for inflation

• The value of GDP at constant prices

• The value of GDP at current prices

What is the income method used to measure in GDP?

• The value of spending on goods and services produced

• The income earned by the factors of production

• The final value of output produced across industries

• The value of all final goods and services produced within a country's borders

What is included in GNI?

• GDP + net factor income to abroad

• GDP - net factor income to abroad

• GDP - net factor income from abroad

• GDP + net factor income from abroad

What is the GDP per capita?

• The value of real GDP divided by population size

• The value of nominal GDP divided by population size

• The value of real GDP at current prices

• The value of nominal GDP at constant prices