Measuring the Nation’s Economic Performance

What does GDP stand for?

• General Domestic Profit

• Gross Domestic Production

• Global Domestic Product

• Gross Domestic Product

Define the Unemployment Rate.

• The Unemployment Rate is the percentage of the total labor force that is unemployed and actively seeking employment.

• The Unemployment Rate is the percentage of the total labor force that is studying and actively seeking employment.

• The Unemployment Rate is the percentage of the total labor force that is employed and actively seeking employment.

• The Unemployment Rate is the percentage of the total labor force that is retired and actively seeking employment.

Explain what the Inflation Rate measures.

• The Inflation Rate measures the distance between planets in the solar system.

• The Inflation Rate measures the rate at which the general level of prices for goods and services is rising.

• The Inflation Rate measures the speed of light in a vacuum.

• The Inflation Rate measures the number of days in a week.

What is the purpose of the Consumer Price Index (CPI)?

• To analyze stock market trends

• To measure changes in the price level of consumer goods and services

• To predict the weather patterns

• To calculate the unemployment rate

Describe the Labor Force Participation Rate.

• The Labor Force Participation Rate is the ratio of employed individuals to unemployed individuals

• The Labor Force Participation Rate is the percentage of the working-age population (ages 16 and older) that is either employed or actively seeking employment.

• The Labor Force Participation Rate is the percentage of retired individuals in the workforce

• The Labor Force Participation Rate is the number of people employed divided by the total population

Why is the concept of Value-Added important in economic measurement?

• Value-Added is irrelevant in economic measurement

• Value-Added distorts economic performance metrics

• Value-Added helps in measuring the incremental value created in the production process, providing insights into economic performance and efficiency.

• Value-Added complicates economic analysis

Differentiate between Intermediate Products and Final Products.

• Intermediate products are the final output of a production process.

• Intermediate products are used in the production of final products, while final products are the end result ready for consumption or use.

• Intermediate products are consumed directly by end-users.

• Final products are used as raw materials in the production process.

Compare the Final Product/Expenditures Approach with the National Income Approach.

• The National Income Approach measures the total population of a country.

• The Final Product/Expenditures Approach measures the total value of goods and services produced in an economy, while the National Income Approach measures the total income earned by individuals and businesses.

• The Final Product/Expenditures Approach focuses on the service sector, while the National Income Approach focuses on the manufacturing sector.

• The Final Product/Expenditures Approach measures the total value of imports and exports in an economy.

What are the common national accounting methods used to measure economic performance?

• Fiscal Policy

• GDP, GNP, NNP, NI

• PPP

• CPI

Explain the importance of market price in economic analysis.

• Market price has no impact on economic analysis

• Market price is only relevant for small businesses

• Market price is determined solely by government intervention

• Market price is essential in economic analysis because it reflects the equilibrium point where supply meets demand, guiding decision-making and resource allocation.