3–The citizens of Denmark earn $300 million of income from abroad whereas citizens of other countries earn $500 million in Denmark. Therefore, Denmark’s net factor payments from abroad are positive, and its GDP is larger than its GNP.net factor payments from abroad are negative, and its GDP is larger than its GNP.net factor payments from abroad are positive, and its GNP is larger than its GDP.net factor payments from abroad are negative, and its GNP is larger than its GDP.2–GDP measures both an economy’s production and its expenditures.TrueFalse3–Which of the following is a correct statement?International data provides strong evidence that a nation’s real GDP per person is not associated with other measures of the quality of life.The value of leisure time is excluded in the calculation of GDP per person.Rich and poor countries often have very similar standards of living.How equally income is distributed is accounted for when computing real GDP per person4–Unemployment benefits are:included in GDP because they represent current income.excluded from GDP because they do not reflect the economy’s current production.included in GDP because they represent potential consumption.
excluded from GDP because taxes are raised to finance them.5–When economists refer to intangible items, they are referring to such things as Public parks and schools, and the value of such items is included in GDP.Legal and medical services, and the value of such items is included in GDP.Public parks and schools, and the value of such items is excluded from GDP.Legal and medical services, and the value of such items is excluded from GDP.6–An American company operates a coffeehouse in Lisbon, Portugal. Which of the following statements is accurate?The value of the goods and services produced by the coffeehouse is included in both Portuguese GDP and U.S. GDP.The value of the goods and services produced by the coffeehouse is included in Portuguese GDP, but not in U.S. GDP.The value added by American workers and equipment in Portugal is included in U.S. GDP and the value added by Portuguese workers and equipment is included in Portuguese GDP.The value of the goods and services produced by the coffeehouse is included in U.S. GDP, but not in Portuguese GDP.7–Nominal GDP is a better gauge of economic well–being than real GDP:True-false.
8–Real GDP will decrease only when prices decrease.only when production of goods and services and prices decrease.only when production of goods and services decreases.when prices decrease or output decrease.9–Of the following which is the best single measure of a country’s economic well–being?nominal GDP per person.government expenditures per person.real GDP per person.investment per business firm.10–Net exports equal exports plus imports which equals Y –C –I –G.exports minus imports which equals Y –C –I –G.exports plus imports which equals C + I + G –Y.exports minus imports which equals C + I + G –Y