Measuring a Nation’s Income
TOPIC_1_2011:
MEASURING A NATION’S INCOME
PART 1: MULTIPLE CHOICES:
1. Macroeconomists study a. decisions of households and firms. b. the interaction of households and firms. c. economy-wide phenomena. d. regulations on firms and unions.
2. Which of the following questions is more likely to be studied by a microeconomist than a macroeconomist? a. Why do prices in general rise by more in some countries than in others? b. Why do wages differ across industries? c. Why do production and income increase in some periods and not in others? d. How rapidly is GDP currently increasing?
3. Which of the following statistics is usually regarded as the best single measure of a society’s economic well-being? a. the unemployment rate b. the inflation rate c. gross domestic product d. the trade deficit
4. For an economy as a whole, a. income is greater than expenditure b. expenditure is greater than income. c. income is equal to expenditure. d. GDP measures income more precisely than it measures expenditure.
5. Which of the following statements about GDP is correct? a. GDP measures two things at once: the total income of everyone in the economy and the total expenditure on the economy’s output of goods and services. b. Money continuously flows from households to firms and then back to households, and GDP measures this flow of money. c. GDP is generally regarded as the best single measure of a society’s economic well-being. d. All of the above are correct.
6. If a nation’s GDP rises, then it must be the case that the nation’s a. income and expenditure both rise. b. income and saving both rise. c. income rises, but expenditure may rise or fall. d. saving rises, but income may rise or fall.
7. Because every transaction has a buyer and a seller, a. GDP is more closely associated with a nation’s income than it is with a nation’s expenditure. b. every transaction
MEASURING A NATION’S INCOME
PART 1: MULTIPLE CHOICES:
1. Macroeconomists study a. decisions of households and firms. b. the interaction of households and firms. c. economy-wide phenomena. d. regulations on firms and unions.
2. Which of the following questions is more likely to be studied by a microeconomist than a macroeconomist? a. Why do prices in general rise by more in some countries than in others? b. Why do wages differ across industries? c. Why do production and income increase in some periods and not in others? d. How rapidly is GDP currently increasing?
3. Which of the following statistics is usually regarded as the best single measure of a society’s economic well-being? a. the unemployment rate b. the inflation rate c. gross domestic product d. the trade deficit
4. For an economy as a whole, a. income is greater than expenditure b. expenditure is greater than income. c. income is equal to expenditure. d. GDP measures income more precisely than it measures expenditure.
5. Which of the following statements about GDP is correct? a. GDP measures two things at once: the total income of everyone in the economy and the total expenditure on the economy’s output of goods and services. b. Money continuously flows from households to firms and then back to households, and GDP measures this flow of money. c. GDP is generally regarded as the best single measure of a society’s economic well-being. d. All of the above are correct.
6. If a nation’s GDP rises, then it must be the case that the nation’s a. income and expenditure both rise. b. income and saving both rise. c. income rises, but expenditure may rise or fall. d. saving rises, but income may rise or fall.
7. Because every transaction has a buyer and a seller, a. GDP is more closely associated with a nation’s income than it is with a nation’s expenditure. b. every transaction