Types of Economy and Factors of Production Quiz

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What is one of the problems associated with the Impul income approach?

Frugal benefits

Illiteracy (correct)

Correct net property income abroad calculation

Proper depreciation calculation

Which issue arises from calculating net property income abroad?

Proper depreciation calculation (correct)

Indirect subsidies

Fringe benefits

Legal sources

What challenge is associated with transfer payments?

Proper depreciation calculation

Double counting from legal sources (correct)

Difficulties in calculating depreciation

Problems with fringe benefits

What is a problem related to the expenditure approach?

Income from illegal sources Signup and view all the answers

What is one of the issues mentioned regarding the calculation of PENPI?

Correct depreciation calculation Signup and view all the answers

What is the term for consumption that does not depend on income?

Autonomous consumption Signup and view all the answers

What does MPC stand for in the context of the text?

Marginal Propensity to Consume Signup and view all the answers

If Yd is 1500, what would be the value of C based on the provided function C = 100 + 0.4Yd?

$600 Signup and view all the answers

How is the slope (MPC) calculated in this context?

By dividing the change in consumption by the change in income Signup and view all the answers

What does the term 'f' represent in the function: Can also Le sittens = f CY?

Autonomous expenditure Signup and view all the answers

What does the term 'Capital interest Стером' refer to?

Income from royalties Signup and view all the answers

Which type of economy involves no government intervention?

Closed economy Signup and view all the answers

What does the 'Income Approach' (GDT) involve?

Summation of all factors of production Signup and view all the answers

In the context provided, what is 'Per capita income' calculated as?

Real national income divided by the population Signup and view all the answers

What does 'Consumption' refer to in the economic context?

Expenditure by households on goods and services Signup and view all the answers

What is a key characteristic of a capitalist system?

Resources mainly in private hands Signup and view all the answers

Which economic system believes in the concept of 'full employment'?

Classical Signup and view all the answers

What type of economy does classical economics advocate for?

Closed economy with no imports/exports Signup and view all the answers

What is GDP always valued at?

Market price Signup and view all the answers

According to classical economists, what is the relationship between supply and demand in the economy?

Supply creates its own demand Signup and view all the answers

What market structure is preferred by classical economists?

Perfect competition Signup and view all the answers

Which of the following is a problem associated with the output approach of calculating GDP?

Inaccurate statistical data on output Signup and view all the answers

Which economist is associated with Classical economics?

Adam Smith Signup and view all the answers

What is a challenge in calculating the national output of nationals abroad?

Difficulty in locating peasant farmers Signup and view all the answers

Which approach dictates expenditure by individuals, firms, and the state on goods and services?

Income approach Signup and view all the answers

What does GDE stand for in the context provided?

Gross Domestic Expenditure Signup and view all the answers