chapter 7

Question 1

The total value of all income generated by the residents of a nation, including both the domestic production of goods and services and income from abroad

Answer 1

Gross national income (GNI)

Question 2

A measure of the total value of all income generated by the residents of a nation, including both domestic production of goods and services and income generated from abroad, mainly through dividends and interest payments, minus similar payments made to other countries.

Answer 2

Gross National Income (GNI)

Question 3

A means of adjusting the exchange rates for two currencies so the currencies have equivalent purchasing power

Answer 3

Purchasing power parity

Question 4

A measure of the degree to which family income within a country is distributed equally

Answer 4

Gini index

Question 5

The amount of income left after paying taxes and making essential purchases

Answer 5

Discretionary income