Which one of the following is a major macroeconomic objective of the government?
Sustained economic growth
Low and stable inflation
High levels of employment
All of the above
Which of the following categories would be included as part of gross domestic fixed capital investment in the UK economy?
An increase in the value of business inventories (stocks)
An increase in the rate of capital depreciation
An increase in new commercial and residential property investment spending
An increase in current government spending on the National Health Service
Which of the following statements is correct?
Gross investment equals net investment minus depreciation
Gross investment plus net investment equals depreciation
Net investment equals gross investment minus depreciation
Net investment minus depreciation equals gross investment
Which of the following items of expenditure are counted as part of government spending in the UK national income accounts?
Grants made to students in full-time education
Expenditure on the wages and salaries of teachers in state schools
Interest payments on government debt
Payments of the state pension to claimants
For the year 2001, in the British economy the percentages of consumption spending, gross investment, government purchases, and net exports (X-M) as a share of GDP were approximately as follows:
68%, 17%, 18%, and 3%.
40%, 25%, 20% and 15%
75%, 10%, 15% and 5%
64%, 30%, 8% and -2%
Per capita GDP is a baseline measure of the standard of living. It equals
GDP divided by the total number of people employed in the economy + the unemployed
GDP divided by the number of taxpayers
GDP divided by the total population
GDP divided by the adult population (aged 16+)
What is the difference between GDP and GNP?
GNP measures output produced by both foreign and domestic factors of production within an economy
GDP measures output produced by domestically-owned factors of production within the economy and in other countries.
GDP measures output produced by all factors of production, foreign and domestic, within an economy
GDP measures output produced by all factors of production, foreign and domestic, within an economy
Which one of the following is the best guide to the likely trend rate of economic growth for a country? An increase in
Consumer Spending
Net Exports
Labour and Capital Productivity
Government Spending on Welfare
Investment is a ___________of spending that ______________ the _____________ of capital
flow; increases; stock
flow; adds to; flow
stock; decreases; stock
stock; increases; flow
Real GDP is not a good indicator of economic welfare because it __________
Excludes the value of income and spending in the shadown "black" economy
Does not include the external costs and benefits created by externalities
Measures the value of time spent working in producing goods and services but not the value of leisure time
All of the above
In a small regional farming sector in a given year, farmers sell potatoes to factories for £10m Factories then manufacture and sell frozen chips and crisps to supermarkets fo £17m. Supermarkets sell these frozen chips and crisps to consumers for £21m
From this information we can conclude that
The value added by the factories is £11m during the year
The value added by the farmers is £12m during the year
The total value added is £48m
The total value added is £21m
In country X in a given year the money value of national output is estimated to be £300m at current prices. If the GDP deflator (index of prices) is found to be 120, then real national output measured at constant base year prices will be
£200m
£250m
£300m
£320m
The chart below shows the annual rate of growth for the UK and the USA for each year since 1990
From the data shown in the chart we can deduce that
The United States has grown faster than the UK throughout the period since 1990
The United States has a higher standard of living than the UK
The United States experienced a recession in 2001
The UK experienced a slowdown in 2001 and 2002
The chart below shows the annual growth of output in the UK manufacturing and service industries
From the information we can conclude that
Manufacturing industry exports more of its output than the service industries
Manufacturing industry has experienced a recession in each year since 1994
The service sector has grown at a constant rate from 1994 - 2002
Manufacturing industry suffered a recession in 2001-2002