Q1. When calculating the Gross Domestic Product (GDP) of a country:

A)   only the value of goods and services at the final stage of production are included.

B)   the output, expenditure, and income measures are always equal.

C)   the income (rent, interest, profits, and dividends) earned by all of the residents of the country is included, regardless of where the assets are located.

Q2. Gross Domestic Product (GDP), a measure of a country’s output, is best defined as the:

A)   total goods and services produced by a country’s citizens in one year, adjusted for the shadow economy.

B)   total goods and services produced by a country’s citizens in one year.

C)   total market value of all final goods and services produced in a country in one year.

Q3. James Willingham, CFA, is an equity portfolio manager and partner in a large investment firm in New York. The firm hires a group of new college graduates each year for its internship program, in which the interns rotate through each of the investment departments of the firm for a six week period to gain insight into the different areas of the firm’s operations. The interns attended top universities around the country and have studied the basic theories of finance, but for the most part have no practical experience working with investments.

Willingham, as head of the domestic equity desk, is responsible for the supervision of the interns while they are in his department. Over the past several years, Willingham has noticed that although the interns are selected from a highly qualified pool of candidates, they seem to not have a firm working knowledge of some of the basic economic principles necessary to successfully manage an investment portfolio. Willingham has written a sample case study for the interns to analyze to strengthen their skills when assessing equities for investment. He feels that it will provide knowledge that will be useful as they rotate through each of the departments of the firm.

The case study begins with a review of the most common measures of economic activity: gross domestic product (GDP), gross national income (GNI) and net national income (NNI). Willingham believes it is very important to understand the differences in the composition of the three measures in order to meaningfully compare and contrast the reported results among different countries. He formulates sample data for a country in order for each of the interns to practice calculating the different measures of a country’s productivity.

                Sample Data (year ending 12/31/05)

Willingham also expects the interns to have a full working knowledge of the three components of GDP: output, expenditure, and income. He believes that knowing the interrelationship of these three measures, how they are derived, and how they should be interpreted is crucial for assessment of a country’s economy as well as the effect it can have on an individual stock.

Among the three most widely used measures of economic activity:

A)   GDP understates economic activity to the greatest degree because the production of the underground economy is not included in the measure.

B)   GNI is theoretically the most accurate, although not widely used because of the difficulty in quantifying the economic cost of depreciation.

C)   GDP only counts production from within a country’s geographic boundaries, while GNI includes productivity of a country’s citizens regardless of where assets are located.

Q4. Calculate the GDP based upon the information given above:

A)   $41,625,000.

B)   $48,375,000.

C)   $37,750,000.

答案和详解如下：

Q1. When calculating the Gross Domestic Product (GDP) of a country:

A)   only the value of goods and services at the final stage of production are included.

B)   the output, expenditure, and income measures are always equal.

C)   the income (rent, interest, profits, and dividends) earned by all of the residents of the country is included, regardless of where the assets are located.

Correct answer is A)

Including goods and services at the intermediate stages of production in the GDP calculation would overstate the economic activity of a country; therefore, only finished products are included.

Q2. Gross Domestic Product (GDP), a measure of a country’s output, is best defined as the:

A)   total goods and services produced by a country’s citizens in one year, adjusted for the shadow economy.

B)   total goods and services produced by a country’s citizens in one year.

C)   total market value of all final goods and services produced in a country in one year.

Correct answer is C)         

GDP is the sum of all economic value produced in one year in a country, regardless of who owns the assets. It does not account for depreciation or the productivity of the country’s shadow economy.

Q3. James Willingham, CFA, is an equity portfolio manager and partner in a large investment firm in New York. The firm hires a group of new college graduates each year for its internship program, in which the interns rotate through each of the investment departments of the firm for a six week period to gain insight into the different areas of the firm’s operations. The interns attended top universities around the country and have studied the basic theories of finance, but for the most part have no practical experience working with investments.

Willingham, as head of the domestic equity desk, is responsible for the supervision of the interns while they are in his department. Over the past several years, Willingham has noticed that although the interns are selected from a highly qualified pool of candidates, they seem to not have a firm working knowledge of some of the basic economic principles necessary to successfully manage an investment portfolio. Willingham has written a sample case study for the interns to analyze to strengthen their skills when assessing equities for investment. He feels that it will provide knowledge that will be useful as they rotate through each of the departments of the firm.

The case study begins with a review of the most common measures of economic activity: gross domestic product (GDP), gross national income (GNI) and net national income (NNI). Willingham believes it is very important to understand the differences in the composition of the three measures in order to meaningfully compare and contrast the reported results among different countries. He formulates sample data for a country in order for each of the interns to practice calculating the different measures of a country’s productivity.

                Sample Data (year ending 12/31/05)

Willingham also expects the interns to have a full working knowledge of the three components of GDP: output, expenditure, and income. He believes that knowing the interrelationship of these three measures, how they are derived, and how they should be interpreted is crucial for assessment of a country’s economy as well as the effect it can have on an individual stock.

Among the three most widely used measures of economic activity:

A)   GDP understates economic activity to the greatest degree because the production of the underground economy is not included in the measure.

B)   GNI is theoretically the most accurate, although not widely used because of the difficulty in quantifying the economic cost of depreciation.

C)   GDP only counts production from within a country’s geographic boundaries, while GNI includes productivity of a country’s citizens regardless of where assets are located.

Correct answer is C)

There is typically very little difference between GDP and GNI, in spite of the fact that they are two distinct measures of a country’s productivity.

Q4. Calculate the GDP based upon the information given above:

A)   $41,625,000.

B)   $48,375,000.

C)   $37,750,000.

Correct answer is A)

Working backwards: NNI + depreciation − net property income from abroad = GDP $45,000,000 + $3,875,000 − $7,250,000 = $41,625,000

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