What's one major pitfall of using per capita GDP/GNP

Does not account for income distribution

Which of the following does NOT affect the trend path of GDP over time?

fluctuations in the unemployment rate

The position of the long-run AS-curve is determined by

the full-employment level of output

Periods of very high inflation rates

most often are caused by sharp increases in aggregate demand

What are the 4 payments for 4 factors of production?

interests, services, labour and entrepreneurship

Which is the best definition for Real GDP

Measure of output based on price at some point of reference

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IB - Macroeconomics Quiz

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Questions 20

Answers

1
What’s the formula for Aggregate demand?
C+I+G
C+I+G+(X - M)
C+L+G+X+M
X+I+G=M+S+T
2
European countries consump vietnamese products, toward Viet Nam it is…:
Injections
Leakages
Imports
Exports
3
Per capita GDP/GNP mainly indicates…
The level of inflation in a country
Average national income
How much a person spends in a country
Environmental degradation'
4
What’s the equilibrium in the foreign sector?
I=S
G=I
X+I+G=M+S+T
C+I
5
What's the equilibrium in the government section in the circular income model?
G=I
GDP
I+G=S+T
GNP
6
What's one major pitfall of using per capita GDP/GNP
It doesn't take into account black markets
Does not account for income distribution
Prices change over time
Has opportunity costs
7
Method uses to calculate GDP that incorporates adding up all domestically produced final goods?
Income method
Domestic products method
Output method
Expenditure method
8
Which of the following does NOT affect the trend path of GDP over time?
efficiency improvements
an increase in population growth
the availability of capital equipment
fluctuations in the unemployment rate
9
In studying growth theory
we focus on the very long run
we assume that all inputs are fully employed
we ignore recessions and booms
all of the above
10
Method uses to calculate GDP that incorporates includes expenditures to produce final products?
Expenditure method
Domestic expenses method
Income method
Domestic products method
11
What is the formula for Net National Product (NNP)?
GDP - capital consumption
Net national consumption - net property income from abroad
GDP + net property income from abroad
GNP - capital consumption
12
The position of the long-run AS-curve is determined by
fiscal policy
monetary policy
the full-employment level of output
consumer confidence
13
Periods of very high inflation rates
most often occur when actual GDP is less than potential GDP
can only occur in a situation when the AS-curve is vertical
most often are caused by sharp increases in aggregate demand
can only occur if the output gap is large
14
What's the formula for GDP deflator?
(nominal GDP/real GDP)*100
(GDP/GNI)*100
GDP/population
GDP + income paid abroad
15
What are the 4 payments for 4 factors of production?
rent, wage, salary and profit
rent, wage, income and interest
goods, rent, wage and salary
interests, services, labour and entrepreneurship
16
GDP per capita is calculated by…
GDP/population
GDP + factor income paid abroad
(GNI/GNI)*100
(nominal GDP/real GDP)*100
17
Which is the best definition for Real GDP
Measure of output based on price at some point of reference
Total value of all domestically produced goods and services
A measure of output based on current prices
Value of all products produced by factors of production
18
What's the equilibrium of the financial market in the circular income model?
I=S
I=C
I=G
C+I+G+(X-M)
19
Which of the following is a central issue in macroeconomics?
the effect of excise taxes on consumers' buying patterns
inflation of prescription drug prices
the deregulation of the banking industry
none of the above
20
If Banks and Businesses don't like taking risk. What are they ?
Risk taker
Risk premium
Risk avoidance
Risk averse

IB - Macroeconomics Quiz Flashcards | StudBud