30 Questions
What is the formula for GDE?
C+I+G
Which of the following is an example of semi-durable goods?
Clothing
What is included in the consumption expenditure by the general government?
Salaries and wages of government employees
What is gross fixed capital formation?
Expenditure on production goods such as new buildings and machines
Which of the following is an example of non-durable goods?
Food
What is the category of expenditure that includes new buildings at Poly?
Gross fixed capital formation
What is the term for a temporary decrease in aggregate demand, including consumption, investment, and exports?
Business cycle
What is the consequence of a decrease in demand for inputs during a recession?
Firms may have to reduce production
What type of unemployment is caused by changes in consumer preferences?
Structural unemployment
What is the result of the sum of structural and frictional unemployment?
Natural unemployment rate
What type of unemployment is caused by seasonal shifts in labour supply and demand?
Seasonal unemployment
What is the consequence of increased foreign competition in an industry?
Structural unemployment
Why does the wine not increase GDP by N$73 000?
Because N$73 000 is obtained by double counting.
What is the total value added in the production of wine according to Table 4?
N$25 000
What are the goods that are purchased for consumption by individuals, households, and firms?
Final goods
Why are intermediate goods not included in the GDP?
Because they would result in double counting
What is the value of the trees sold by the forester to the sawmill?
N$4 000
What is the main characteristic of final goods and services?
They are produced and sold to the end user for consumption
What is the value of the timber sold by the sawmill to the factory?
N$10 000
Why is the bread used to make sandwiches at school considered an intermediate good?
Because it is used to produce another good
What is included in the GDP?
Production by foreigners who live and work in Namibia
What is typically indicated by falling prices in an economy?
A decrease in the demand for goods and services
What is the main difference between GDP and GNP?
GDP includes production by foreigners, while GNP excludes it
What is the purpose of assigning weights to goods and services in the NCPI basket?
To indicate the relative importance of each good or service in the basket
What is the purpose of the three ways of measuring National Income/GDP?
To get the same final figure for National Income, if statistics are complete and accurate
What is the current base year for calculating the NCPI in Namibia?
December 2012
Which of the following is an example of a final good or service?
A haircut purchased from a hair salon
Which of the following is NOT a step in constructing the NCPI?
Calculating the inflation rate directly
What is the total number of goods and services covered in the NCPI sample?
259
Why are falling prices not necessarily a positive for an economy?
Because they are an indication of a decrease in demand
Test your understanding of final goods and services, how they are produced and sold to end users, and how they are included in the GDP. Learn about the difference between final and intermediate goods and how to measure national income.
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