Types of Economy and Factors of Production Quiz
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Questions and Answers

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?

<p>Income from illegal sources (C)</p> Signup and view all the answers

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

<p>Correct depreciation calculation (B)</p> Signup and view all the answers

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

<p>Autonomous consumption (A)</p> Signup and view all the answers

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

<p>Marginal Propensity to Consume (D)</p> 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?

<p>$600 (D)</p> Signup and view all the answers

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

<p>By dividing the change in consumption by the change in income (B)</p> Signup and view all the answers

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

<p>Autonomous expenditure (B)</p> Signup and view all the answers

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

<p>Income from royalties (D)</p> Signup and view all the answers

Which type of economy involves no government intervention?

<p>Closed economy (B)</p> Signup and view all the answers

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

<p>Summation of all factors of production (A)</p> Signup and view all the answers

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

<p>Real national income divided by the population (B)</p> Signup and view all the answers

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

<p>Expenditure by households on goods and services (C)</p> Signup and view all the answers

What is a key characteristic of a capitalist system?

<p>Resources mainly in private hands (D)</p> Signup and view all the answers

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

<p>Classical (B)</p> Signup and view all the answers

What type of economy does classical economics advocate for?

<p>Closed economy with no imports/exports (A)</p> Signup and view all the answers

What is GDP always valued at?

<p>Market price (D)</p> Signup and view all the answers

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

<p>Supply creates its own demand (C)</p> Signup and view all the answers

What market structure is preferred by classical economists?

<p>Perfect competition (B)</p> Signup and view all the answers

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

<p>Inaccurate statistical data on output (A)</p> Signup and view all the answers

Which economist is associated with Classical economics?

<p>Adam Smith (D)</p> Signup and view all the answers

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

<p>Difficulty in locating peasant farmers (D)</p> Signup and view all the answers

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

<p>Income approach (A)</p> Signup and view all the answers

What does GDE stand for in the context provided?

<p>Gross Domestic Expenditure (C)</p> Signup and view all the answers

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