Economics Chapter on GDP and Standard of Living

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Which of the following best describes what GDP per capita represents?

Total income of a country divided by the number of people (correct)

Measure of productivity per worker in an economy

Total consumption by households divided by population

Total economic output of a country measured in foreign currency

What trend in GDP can indicate improvements in the standard of living?

Fluctuating GDP with no clear trend

Increasing GDP per capita over time (correct)

Decreasing GDP per capita over time

Stable GDP with increasing population

How does GDP affect economic policy in a country?

It influences decisions on taxation and government spending. (correct)

It dictates the price levels of goods and services.

It directly determines the interest rates set by the central bank.

It serves as a sole measure for exporting policies.

In international comparisons, which measurement provides the most accurate representation of individual purchasing power?

GDP per capita based on purchasing power parity (PPP) Signup and view all the answers

Which of the following GDP calculation methods best reflects the economy's total production?

Expenditure approach Signup and view all the answers

Which factor is least likely to be directly influenced by changes in GDP?

Average lifespan of the population Signup and view all the answers

What is a potential negative implication of a rapidly increasing GDP?

Economic inequality may rise Signup and view all the answers

Which indicator is often correlated with higher GDP values and suggests improved quality of life?

Higher literacy rates Signup and view all the answers

What is the GDP per capita for France in 2022 as reported in the data?

57860.342201 Signup and view all the answers

Which year shows a higher GDP per capita value compared to 1980?

2023 Signup and view all the answers

How does the GDP in 2023 compare to that in 2022?

It increased by approximately $5000. Signup and view all the answers

Which statement best reflects the trend of GDP per capita in France from 1962 to 2023?

It consistently increased over the years. Signup and view all the answers

In terms of economic policy, what does an increasing GDP per capita typically indicate?

Strong economic growth. Signup and view all the answers

What does GDP per capita often serve as an indicator for?

Quality of life and economic wellbeing. Signup and view all the answers

Which method does the GDP identity from the expenditure side primarily represent?

Total consumption, investment, government spending, and net exports. Signup and view all the answers

What is the significance of GDP in international comparisons?

It facilitates understanding of economic disparities between countries. Signup and view all the answers

Which metric is used to represent GDP that has been adjusted for purchasing power parity?

USD_PPP Signup and view all the answers

In the provided data, which year shows the highest GDP per capita for France?

2015 Signup and view all the answers

What does a significant increase in GDP over the years typically indicate about a country’s economic performance?

Improving economic stability Signup and view all the answers

How is consumption per capita typically expressed in economic data?

In units of currency per person Signup and view all the answers

Which of the following factors is least likely to be influenced by changes in a country's GDP?

Public health outcomes Signup and view all the answers

To compare GDP across nations effectively, why is it important to use purchasing power parity?

It provides a standardized measure that accounts for cost of living differences. Signup and view all the answers

Which of the following is an indicator that might be considered alongside GDP to assess overall quality of life?

Average life expectancy Signup and view all the answers

What does a decline in GDP suggest regarding economic performance?

Potential recessionary trends Signup and view all the answers