WorksheetsMeasuring a Nation's Income
Total questions: 20
Worksheet time: 40mins
In the expenditure approach, the GDP equation the GDP equation can be written as
GDP = C+I+G+X+M
GDP = C+I+G+(X-M)
GDP = C+I+G+M-X
GDP = C+I+G -NX
The measure of the economic activity
of all the people and businesses within a country is the
gross national product
gross domestic product
national income
disposable income
A Gross National Product is the
the total market value of all final goods and services produced within a given period by factors of production located within a country
the total market value of all final goods and services produced within a given period by factors of production owned by a country’s citizens, regardless of where output is produced
a nation’s total product minus is required to maintain the value of its capital stock
the total amount of income received by the factors of production in the economy
GDP can be calculated by summing
consumption, investment, government purchases, exports and imports
consumption, investment, government purchases and net exports
consumption, investment, wages, and rent
consumption, investment, government purchases and imports
In a National Income Account,
investment refers to
buying shares and bonds
allocation to the company’s bond
expenditure on capital goods
all expenditures except tax
Which of the following possible measures of national income are not typically calculated in an economy?
the income method
value added/output method
the cost-benefit method
the expenditure method
GDP is not a perfect measure of well-being; for example,
GDP incorporates a large number of non-market goods and services that are of little value to society.
GDP places too much emphasis on the value of leisure
GDP fails to account for the quality of the environment.
All of the above are correct.
If consumption is $4000, exports are $300, government purchases are $1000, imports are $400, and investment is $800, then GDP is $5700.
True
False
For an economy as a whole, income equals expenditure because the income of the seller must be equal to the expenditure of the buyer.
True
False
New home construction is included in the consumption component of GDP.
True
False
Is this counted in the GDP of the US?
Cars made by a Japanese company in California.
Yes
No
Is this counted in the GDP of the US?
Cars made by a US company in South Korea.
Yes
No
In which part of the GDP calculation does this fit?
Australia exported $6 billion worth of goods in 2018, but imported $10 billion in goods.
Consumer spending
Government spending
Investment spending
Net exports
In which part of the GDP calculation does this fit?
You purchase the new iPhone 11.
Consumer spending
Government spending
Investment spending
Net exports
The trade in exotic animals being illegally sold as pets is a multi-billion-dollar-a-year industry. Is this included in GDP?
Yes - Consumer spending
Yes - Government Spending
No - Underground Economy
No - Non-market activity
In the GDP equation, what does the 'G' stand for?
Government taxes
Government spending
Government budget
Good Government
In the GDP equation, what does the 'M' stand for?
Imports
Machines and Capital
Malaysia
Mixed economy
Which component of GDP represents you and is the largest?
C
I
G
NX
When Amazon buys a new delivery truck fleet, what component of the GDP equation is this?
C
I
G
NX
