Domestic Macroeconomics Problems

Question 1

What is GDP?

Answer 1

the monetary value of all final goods and services produced by residents within the geographical boundaries of a country,
in a given period of time, regardless of ownership of the factors of
production.

Question 2

What is GNP?

Answer 2

the monetary value of all final goods and services produced by nationals of a country, irrespective of location of production (domestic or abroad), in a given period of time

Question 3

GNP = GDP + ____________

Answer 3

Net factor income from abroad = Income earned by nationals from the production of output located overseas - Income paid to foreign firms/individuals from production of output located domestically

Question 4

HDI value ranges from ___ to ____

Answer 4

0 to 1

Question 5

HDI measures average achievement in which three dimensions?

Answer 5

long and healthy life, access to knowledge, a decent standard of living

Question 6

What are the indicators of the three dimensions of HDI?

Answer 6

dimension 1 (long and healthy life): life expectancy at birth

dimension 2 (access to knowledge): expected years of schooling, mean years of schooling

dimension 3 (a decent standard of living): GNI per capita (PPP $)