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Questions and Answers
What does GDP stand for in the context of economy?
What does GDP stand for in the context of economy?
- Gross National Income
- Gross Domestic Product (correct)
- Global Dollar Price
- General Development Pace
What is a limitation of GDP as an indicator of standard of living?
What is a limitation of GDP as an indicator of standard of living?
- It is only used for small businesses
- It is only used in developed countries
- It is not affected by inflation
- It does not account for the distribution of income among the population (correct)
What does GNI measure?
What does GNI measure?
- Total income earned by foreigners within a country
- Total income earned from exports
- Total income earned from producing goods and services within a country
- Total income earned by a country's nationals, including production inside and outside the country (correct)
What is a key difference between GDP and GNI?
What is a key difference between GDP and GNI?
Why might GDP appear more favorable politically, especially in countries with significant foreign debt or asset sales?
Why might GDP appear more favorable politically, especially in countries with significant foreign debt or asset sales?
What do both GDP and GNI ignore?
What do both GDP and GNI ignore?
What is per capita income used for?
What is per capita income used for?
How is per capita income calculated?
How is per capita income calculated?
What does per capita income not address?
What does per capita income not address?
Why do GDP and GNI require adjustments for inflation?
Why do GDP and GNI require adjustments for inflation?
What is the primary function of households in the circular flow model?
What is the primary function of households in the circular flow model?
Which of the following is NOT a participant in the circular flow model?
Which of the following is NOT a participant in the circular flow model?
What is the main purpose of the goods market in the circular flow model?
What is the main purpose of the goods market in the circular flow model?
What is the term for the movement of goods and services in the circular flow model?
What is the term for the movement of goods and services in the circular flow model?
What is the formula for calculating GDP using the Expenditure Approach?
What is the formula for calculating GDP using the Expenditure Approach?
What is the primary purpose of the financial institutions in the circular flow model?
What is the primary purpose of the financial institutions in the circular flow model?
What is the term for the total market value of all final goods and services produced within a country's borders in each period?
What is the term for the total market value of all final goods and services produced within a country's borders in each period?
Which of the following is a factor market in the circular flow model?
Which of the following is a factor market in the circular flow model?
What is the term for the continuous flows in the economy, affecting stock levels of resources and financial assets?
What is the term for the continuous flows in the economy, affecting stock levels of resources and financial assets?
How many approaches are there to calculate GDP?
How many approaches are there to calculate GDP?
What is the main purpose of businesses in the circular flow model?
What is the main purpose of businesses in the circular flow model?
What is the term for the movement of money in exchange for goods, services, and labor in the circular flow model?
What is the term for the movement of money in exchange for goods, services, and labor in the circular flow model?
Which of the following is an example of a public service provided by the government in the circular flow model?
Which of the following is an example of a public service provided by the government in the circular flow model?
What is the formula for calculating GDP using the Expenditure Approach?
What is the formula for calculating GDP using the Expenditure Approach?
What represents the total market value of all final goods and services produced within a country's borders in each period?
What represents the total market value of all final goods and services produced within a country's borders in each period?
Which of the following is a characteristic of the continuous flows in the economy?
Which of the following is a characteristic of the continuous flows in the economy?
What is the main purpose of the factor market in the circular flow model?
What is the main purpose of the factor market in the circular flow model?
Which of the following is an example of a good exchanged in the goods market?
Which of the following is an example of a good exchanged in the goods market?
What is the term for the participants that engage in trade, affecting imports and exports in the circular flow model?
What is the term for the participants that engage in trade, affecting imports and exports in the circular flow model?
What is the relationship between the real flow and the monetary flow in the circular flow model?
What is the relationship between the real flow and the monetary flow in the circular flow model?
What is a major difference between GDP and GNI in terms of geographical scope?
What is a major difference between GDP and GNI in terms of geographical scope?
What is a common limitation of both GDP and GNI as indicators of standard of living?
What is a common limitation of both GDP and GNI as indicators of standard of living?
Why might GDP be more favorable politically in certain countries?
Why might GDP be more favorable politically in certain countries?
What is the purpose of calculating per capita income?
What is the purpose of calculating per capita income?
What is a common adjustment required for both GDP and GNI?
What is a common adjustment required for both GDP and GNI?
What is the focus of GDP as an indicator of standard of living?
What is the focus of GDP as an indicator of standard of living?
What does GNI account for that GDP does not?
What does GNI account for that GDP does not?
What is a limitation of GDP as a measure of standard of living?
What is a limitation of GDP as a measure of standard of living?
What is the primary difference between GDP and GNI in terms of income?
What is the primary difference between GDP and GNI in terms of income?
What is a common problem with both GDP and GNI?
What is a common problem with both GDP and GNI?
What is the primary role of the government in the circular flow model?
What is the primary role of the government in the circular flow model?
Which market is responsible for the exchange of goods and services?
Which market is responsible for the exchange of goods and services?
What is the primary difference between the real flow and the monetary flow in the circular flow model?
What is the primary difference between the real flow and the monetary flow in the circular flow model?
What is the purpose of the financial institutions in the circular flow model?
What is the purpose of the financial institutions in the circular flow model?
What is a key characteristic of the continuous flows in the economy?
What is a key characteristic of the continuous flows in the economy?
Which of the following is an example of a factor of production traded in the factor market?
Which of the following is an example of a factor of production traded in the factor market?
What is the relationship between the Product Approach and the Expenditure Approach to calculating GDP?
What is the relationship between the Product Approach and the Expenditure Approach to calculating GDP?
What is the purpose of calculating GDP?
What is the purpose of calculating GDP?
Which participant in the circular flow model is responsible for hiring labor and producing goods and services?
Which participant in the circular flow model is responsible for hiring labor and producing goods and services?
What is the term for the movement of goods and services in the circular flow model?
What is the term for the movement of goods and services in the circular flow model?
What is a primary reason why GDP might not accurately reflect a country's standard of living?
What is a primary reason why GDP might not accurately reflect a country's standard of living?
Which of the following is a key characteristic of GNI?
Which of the following is a key characteristic of GNI?
What is a common limitation of both GDP and GNI?
What is a common limitation of both GDP and GNI?
What is the primary purpose of calculating per capita income?
What is the primary purpose of calculating per capita income?
Why might GNI be a more accurate indicator of a country's standard of living than GDP?
Why might GNI be a more accurate indicator of a country's standard of living than GDP?
What is a limitation of GDP as a measure of standard of living?
What is a limitation of GDP as a measure of standard of living?
What is the primary difference between GDP and GNI in terms of geographical scope?
What is the primary difference between GDP and GNI in terms of geographical scope?
Which of the following is NOT a limitation of both GDP and GNI?
Which of the following is NOT a limitation of both GDP and GNI?
What is a common adjustment required for both GDP and GNI?
What is a common adjustment required for both GDP and GNI?
What is the primary focus of GDP as an indicator of standard of living?
What is the primary focus of GDP as an indicator of standard of living?
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