Econ2 Quiz

What is the total output of an economy often referred to as?

• National Spending

• National Income

• National Investment

• National Expenditure

In the simple model of circular flow of income, who owns the wealth of the nation?

• Firms

• Government

• Households

• Investors

What are the three injections in the circular flow of income model?

• Government Spending, Taxes, Exports

• Exports, Imports, Taxes

• Investment, Government Spending, Exports

• Investment, Taxes, Imports

What is GDP measured at?

• Market prices

• Wholesale prices

• Retail prices

• Production prices

What is the measure of GDP plus income earned by the country on investments and other assets minus income paid to foreigners on their investments in the UK?

• NNI

• GNI

• GNP

• GDP

What does GDP include that inflates the actual value of national income?

• Imports

• Direct taxes

• Indirect taxes

• Exports

What is used to adjust data for the effects of inflation when making a comparison in real terms?

• Nominal values

• GDP per capita

• GDP

• Real values

Which type of incomes are excluded from the final calculation of national income?

• Salary Incomes

• Transfer Payments

• Investment Incomes

• Business Incomes

What is the term for the total value of all goods and services produced within a country's borders, regardless of who owns the means of production?

• Gross Domestic Product (GDP)

• Gross National Product (GNP)

• Net National Income (NNI)

• Gross National Income (GNI)

What is the term for the total income earned by a nation's residents both domestically and abroad?

• Gross Domestic Product (GDP)

• Gross National Product (GNP)

• Net National Income (NNI)

• Gross National Income (GNI)