national income accounting

What is Gross Domestic Product used as an indicator of?

• Unemployment rate

• Inflation rate

• Interest rate

• indicator of Overall output or production of an economy

How is Gross Domestic Product defined?

• Total population of a country

• Total government spending

• Total land area of a country

• indicator of the overall output or production of an economy

What is the formula for calculating Market Value?

• P - Q

• P x Q

• P / Q

• P + Q

What are the two reasons people buy goods for?

• To increase taxes

• To support local businesses

• Intermediate goods and final goods

• To reduce production costs

What is the difference between Gross Domestic Product and Gross National Income?

• GDP refers to the value of production within a specific region, while GNI refers to the value of production within the entire country

• GDP includes values of final goods produced by an economy, while GNI includes values of goods produced by a specific region

• GDP includes values of goods produced by other countries, while GNI includes values of goods produced within the country

• GDP refers to the value of production regardless of where it was made, while GNI refers to the value of production regardless of who makes the goods and services

Which approach calculates GDP by adding up the spending on final goods and services?

• Expenditure approach

• Value added approach

• Production approach

• Income approach

What does Real GDP overcome the shortcomings of Nominal GDP by?

• Considering only the service sector

• Including only government spending

• Eliminating price changes from the indicator

• Focusing on international trade

What does the GDP Deflator measure?

• Cost of a given bundle of goods in one year relative to a predetermined base year

• Total population growth rate

• Total exports and imports

• Total government debt

What does Real GDP per capita provide an estimate of?

• Average number of hours worked per person

• Total imports and exports

• Total government revenue

• Average output of a person in an economy

What are the limitations of GDP and GNI in depicting the overall health of an economy?

• They provide a complete picture of income distribution

• They consider the environmental impact of production

• They only convey information about production and ignore income distribution and poverty

• They focus on individual well-being