Real Income

Question 1

National income is measured by

Answer 1

GNP and GNI

Question 2

Gross national product

Answer 2

market value of all products produced an annum by labour and property supplied by citizens of one country

Question 3

Gross national income

Answer 3

Sum of value added by all producers who reside in a nation plus overseas interest payments and dividends

Question 4

Purchasing Power Parity

Answer 4

How much the exchange rate needs adjusting so an exchange between countries is equivalent according to each currencies purchasing power

Question 5

Exchange Rate

Answer 5

a rate at which one currency will be exchanged for another currency

Question 6

Relationship between real incomes and subjective happiness

Answer 6

UK’s economy grew by 5% GDP per capita but showed no change in life satisfaction
Generally higher the GDP per capita higher the life satisfaction score
Once basic needs are met higher income does not lead to increased happiness