national income and standards of living

Question 1

material well being

Answer 1

stems from the consumption of consumer good or services

Question 2

non material well being

Answer 2

refer to aspects of well-being that stems from intangibles

Question 3

national income

Answer 3

the total income earned by a nation from producing the country’s total final output over a given period of time

Question 4

national product

Answer 4

the value of the total final output of a country over a period of time

Question 5

national expenditure

Answer 5

the total spending on a country’s total output over a period of time

Question 6

GDP

Answer 6

the value of all final goods and services produced by FOP located within a country’s geographical boundaries, during a given period of time

Question 7

GNI

Answer 7

value of all final goods and services produced during a given period of time by FOP owned by residents of a country, regardless whether these FOP are located within the geographical boundary of the country or abroad

Question 8

Gini coefficient

Answer 8

measures the degree of inequality in income distribution

Question 9

purchasing power parity

Answer 9

measures how many units of one country’s currency are needed to buy exactly the same basket of goods and services as can be bought with a given amount of another country’s currency in that country

Question 10

unemployment level

Answer 10

extent to which factors of production in a country, especially labour, is not being used in the production of goods and services

Question 11

general price level

Answer 11

the average price of all goods and services in the country

Question 12

BOT

Answer 12

difference between the country’s export revenue and import expenditure