.19.objective.

Question 1 Gross National Product equals: a) Net National Product adjusted for inflation b) Gross Domestic Product adjusted for inflation c) Gross Domestic Product plus net property income from abroad d) Net National Product plus net property income from abroad Question 2 Net National Product equals: a) Gross National Product adjusted for inflation b) Gross Domestic Product adjusted for inflation c) Gross Domestic Product plus net property income from abroad d) Gross National Product minus depreciation Question 3 The standard of living is often measured by: a) Real GDP per capita b) Real GDP c) Real GDP * population d) Real GDP plus depreciation Question 4 In a recession: a) Unemployment is likely to be low b) Prices are likely to increase c) Growth is negative d) Growth is slow Question 5 In a boom: a) Surpluses are likely to occur b) Prices are likely to fall c) Supply will increase immediately to match demand d) Shortages may occur Question 6 GDP is likely to increase with: a) An increase in consumer spending b) An increase in taxation rates c) A decrease in government spending d) A fall in investment Question 7 To adjust GDP from market prices to factor cost: a) Add indirect taxes b) Subtract subsidies c) Deduct indirect taxes and deduct subsidies d) Deduct indirect taxes and add subsidies Question 8 To adjust from Gross National Product to Net National Product: a) Deduct depreciation b) Deduct indirect taxes c) Deduct subsidies d) Add inflation Question 9 The Gini coefficient measures a) Income inequality b) Inflation c) Unemployment d) Economic growth Question 10 A higher GDP per capita may not mean that the quality of life has really improved because: a) It measures wealth not income b) It measures Gross Domestic Product c) It does not measure the quality of theitems produced d) It is only measured every five years