Measuring National Income and Final Goods

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What is the formula for GDE?

G+C+I
I+C+G
C+G+I
C+I+G (correct)

Which of the following is an example of semi-durable goods?

Medical services
Cars
Food
Clothing (correct)

What is included in the consumption expenditure by the general government?

Expenditure on durable goods
Purchase of new buildings
Salaries and wages of government employees (correct)
Salaries and wages of private companies

What is gross fixed capital formation?

Expenditure on production goods such as new buildings and machines (A) Signup and view all the answers

Which of the following is an example of non-durable goods?

Food (D) Signup and view all the answers

What is the category of expenditure that includes new buildings at Poly?

Gross fixed capital formation (A) Signup and view all the answers

What is the term for a temporary decrease in aggregate demand, including consumption, investment, and exports?

Business cycle (B) Signup and view all the answers

What is the consequence of a decrease in demand for inputs during a recession?

Firms may have to reduce production (C) Signup and view all the answers

What type of unemployment is caused by changes in consumer preferences?

Structural unemployment (A) Signup and view all the answers

What is the result of the sum of structural and frictional unemployment?

Natural unemployment rate (A) Signup and view all the answers

What type of unemployment is caused by seasonal shifts in labour supply and demand?

Seasonal unemployment (A) Signup and view all the answers

What is the consequence of increased foreign competition in an industry?

Structural unemployment (A) Signup and view all the answers

Why does the wine not increase GDP by N$73 000?

Because N$73 000 is obtained by double counting. (D) Signup and view all the answers

What is the total value added in the production of wine according to Table 4?

N$25 000 (D) Signup and view all the answers

What are the goods that are purchased for consumption by individuals, households, and firms?

Final goods (C) Signup and view all the answers

Why are intermediate goods not included in the GDP?

Because they would result in double counting (A) Signup and view all the answers

What is the value of the trees sold by the forester to the sawmill?

N$4 000 (B) Signup and view all the answers

What is the main characteristic of final goods and services?

They are produced and sold to the end user for consumption (C) Signup and view all the answers

What is the value of the timber sold by the sawmill to the factory?

N$10 000 (D) Signup and view all the answers

Why is the bread used to make sandwiches at school considered an intermediate good?

Because it is used to produce another good (C) Signup and view all the answers

What is included in the GDP?

Production by foreigners who live and work in Namibia (A) Signup and view all the answers

What is typically indicated by falling prices in an economy?

A decrease in the demand for goods and services (C) Signup and view all the answers

What is the main difference between GDP and GNP?

GDP includes production by foreigners, while GNP excludes it (B) Signup and view all the answers

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 (B) Signup and view all the answers

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 (D) Signup and view all the answers

What is the current base year for calculating the NCPI in Namibia?

December 2012 (D) Signup and view all the answers

Which of the following is an example of a final good or service?

A haircut purchased from a hair salon (D) Signup and view all the answers

Which of the following is NOT a step in constructing the NCPI?

Calculating the inflation rate directly (C) Signup and view all the answers

What is the total number of goods and services covered in the NCPI sample?

259 (B) Signup and view all the answers

Why are falling prices not necessarily a positive for an economy?

Because they are an indication of a decrease in demand (B) Signup and view all the answers