National Income

Select the factors that influence consumption (Choose 3)

• Income levels

• Consumer expectations

• Weather

• Availability of credit

• Cost of Production

MPM stand for

• Marginal Propensity to Import

• Marginal Proximity Measure

Marginal propensity to consume (MPC) refers to...

• The percentage of every extra Euro which is spent by a consumer

• The percentage of every extra Euro which is saved by a consumer

• The percentage of every extra Euro which is spent on imports by a consumer

The problem of double-counting occurs in the....

• Output method

• Expenditure method

• Income method

• Input method

The Income method measures

• All output produced with a country within a year

• All income earned by temporary residents of a country

• All income earned by the permanent residents of a country

• All expenditure within an economy within a year

Net Factor Income from the Rest of the World is included in

• GDP

• GNP

Gross Domestic Product includes the output of....

• All Irish factors of production regardless of location

• All output produced in Ireland regardless of nationality

Which of these are injections into the circular flow of income... (Choose 3)

• Saving

• Investment

• Imports

• Exports

• Government Spending

A Recession is...

• A period of economic decline of at least 10% decline in GDP

• A period of negative economic growth lasting more than 6 months

• A period of economic growth lasting less than 6 months

Identify the advantages of economic growth from the following options... (Choose 3)

• Increased Employment

• Improved standard of living

• Increased wage demands

• Increased incentive to invest

• Inflationary pressures