14 Questions
What was the percentage increase in prices from 2004 to 2005?
22 percent
What was the percentage increase in real GDP from 2004 to 2005?
22 percent
If Philippines GDP exceeds Philippines GNP, what does this indicate?
Philippine citizens are producing more in foreign countries than foreigners are producing in the Philippines.
Which of the following best describes the relationship between Philippines GDP and GNP?
GDP measures production inside a country while GNP measures production by the country's citizens worldwide.
Which economic concept is a better indicator of a nation's economic performance - real GDP or nominal GDP?
Real GDP, as it accounts for inflation and reflects actual economic growth.
How would an increase in prices affect real GDP?
Increase in prices would lead to a decrease in real GDP.
What does a negative percentage change in real GDP indicate?
Economic recession or contraction.
What is the main difference between Gross Domestic Product (GDP) and Gross National Product (GNP)?
GDP includes only production within the country's borders, while GNP includes production by the country's residents both domestically and abroad.
What does 'final' mean when referring to goods and services in GDP calculation?
Only goods and services that are available for consumption are counted.
In calculating GDP, why is it important to avoid double-counting?
To prevent overestimation of a country's economic output.
Which components make up the income approach to measuring GDP?
Wages, rent, and profit earned in the economy.
How is GDP measured using the factor-income approach?
By adding up all income earned in the economy such as wages, rent, and profit.
What is the significance of 'in a given period' in the definition of GDP?
It ensures that only newly produced goods and services are counted, excluding those produced in previous years.
Why does GDP focus on legally sold goods and services 'within a country'?
To ensure accurate measurement of domestic production without including foreign transactions.
Test your knowledge on the factor-income approach and computation of net income in economics. Learn about the significance of words like wages and interest in the calculation of incomes received by owners of resources.
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