Economics Quiz

What is the definition of Aggregate Demand?

• The total sum of all demands and expenditures in the economy at any given price.

• The total sum of all goods and services produced in the economy.

• The total income of a nation from exports.

• The total amount of savings in the economy.

Aggregate Demand is a measure of which of the following?

• Consumer Confidence

• National Income

• Unemployment Rate

• Inflation Rate

National Income is usually measured as:

• GNP (Gross National Product)

• NNP (Net National Product)

• GDP (Gross Domestic Product)

• NNI (Net National Income)

How many components make up National Income?

• Two

• Three

• Four

• Five

Which formula represents the calculation of National Income or Aggregate Demand (AD)?

• AD = C + I + G + (X + M)

• AD = C + I + G + (X - M)

• AD = C - I + G + (X - M)

• AD = C + I - G + (X + M)

What does the 'C' in the Aggregate Demand formula AD = C + I + G + (X - M) stand for?

• Consumption

• Capital

• Corporations

• Currency

What is saving defined as in the context of income?

• The amount of income spent on consumer durables

• The amount of income spent on services

• What is not spent out of income

• The amount of income spent on consumables

When discussing income in the provided material, what type of income is being referred to?

• Gross income

• Net income

• Disposable income

• Investment income

What is the relationship between consumption and the factors that determine it called?

• Consumption ratio

• Consumption function

• Consumption dynamics

• Consumption pattern

What is the most important factor in determining the amount of consumption according to the material?

• Total income

• Disposable income

• Savings

• Investment