Measures of Economic Performance

What does the expenditure method of GDP measurement focus on?

• Total expenditure on all finished goods and services

• Total income from wages and salaries

• Sum of added value in production

• Total investment in infrastructure

What is a recession defined as in terms of GDP growth?

• Two consecutive quarters of negative growth

• One quarter of negative growth

• Three consecutive quarters of positive growth

• Two consecutive quarters of positive growth

Who developed the modern concept of GDP?

• Simon Kuznets

• John Maynard Keynes

• Milton Friedman

• Adam Smith

What is not included in GDP calculations?

• Second-hand transactions

• New property sales

• Government spending

• Consumer spending

What is the definition of 'Volume' in economic terms?

• The market value of goods and services

• The quantity and number of items produced

• The total income generated

• The total value of exports

Why might an economy with high volume have low value?

• Because it produces high-value goods

• Because it produces mainly primary products

• Because it has a large population

• Because it exports most of its goods

What is a characteristic of a primary product dependent (PPD) economy?

• High value and low volume

• Low value and high volume

• High value and high volume

• Low value and low volume

What is the typical GNI difference in developing countries compared to GDP?

• GNI is significantly lower than GDP

• GNI is significantly higher than GDP

• GNI and GDP are the same

• GNI is not measured in developing countries

What does GNI focus on instead of output?

• The total production of goods

• The income received by citizens

• The total exports of a country

• The number of goods produced

How is real value different from nominal value?

• It is not adjusted for inflation

• It is adjusted for inflation

• It measures total GDP

• It measures per capita GDP