measuring a nation's income

Question 1

GDP

Answer 1

a measure of a country’s income and expenditures
GDP is the market value of all final goods and services produced by a country in a period of time

Question 2

GDP per capita

Answer 2

the financial metric that breaks down a country’s output per person
tells us the mean income and expenditures in an economy

Question 3

GDP does not account for…

Answer 3

value of leisure
value of clean environment
value of all activity outside the market

Question 4

income

Answer 4

must equal expenditure

Question 5

GDP =

Answer 5

C + I + G + NX
(exports-imports)

Question 6

nominal gdp

Answer 6

measures the value of the output at current prices

Question 7

real GDP

Answer 7

measures the value of output at constant prices

Question 8

GDP deflator =

Answer 8

(nominal GDP / real GDP) x 100

Question 9

price index in given year =

Answer 9

(price basket in specific year / price basket in base year) x 100

Question 10

real GDP =

Answer 10

nominal GDP / price index (IN HUNDREDTHS)

Question 11

Net national product

Answer 11

GDP - depreciation

Question 12

depreciation

Answer 12

the depreciation of capital through wear and tear/obsolescence

Question 13

national income=

Answer 13

net national product - direct taxes

Question 14

personal income=

Answer 14

national income - income tax (personal tax)

Question 15

disposable personal income

Answer 15

money for saving/consumption