Q5. Utilizing the information given above, which of the following measures of productivity should produce the highest number, all other things being equal?

A)   GNI.

B)   GDP at market prices.

C)   GDP at factor cost.

Q6. Assume that a United States-owned company operates a production facility in India, and produces $25,000,000 of goods per year at that location. Which of the following statements regarding the production of the facility is most accurate?

A)   The production of the facility in India would not be included in the GDP measure for India.

B)   The production of the facility in India would not be included in the GDP measure for the United States.

C)   The production of the facility in India would not be included in the GNI measure for the United States.

Q7. In order to convert GDP at factor cost to GDP at market prices, which of the following adjustments should be made to GDP at factor cost?

     Indirect Taxes            Subsidies

A) Add                                             Subtract

B) Subtract                                     Subtract

C) Subtract                                     Add

Q8. Which of the following statements regarding the measurement of the productivity of a country is most accurate?

A)   The most comprehensive measure of a country’s expenditure component is derived by adding all consumption, investment, and export of goods and services.

B)   Income is presented as an index, with a base year’s income set equal to 100, and subsequent years expressed as a percentage of the base year.

C)   Output is considered to be the most reliable of the three measures, while expenditure is considered to be the least reliable.

Q9. Which of the following would NOT be included in the calculation of Gross Domestic Product (GDP) for the United States?

A)   Profits of a factory in located in California that is owned by a Japanese corporation.

B)   Rental income from apartment buildings located in Texas.

C)   Profits from a customer service center located in India that is owned by a U.S. corporation.

Q10. Gross Domestic Product (GDP) typically understates a country’s productivity because it does not fully account for:

A)   the country’s shadow economy.

B)   depreciation / depletion of assets.

C)   any productive assets physically located in other countries.

[此贴子已经被作者于2009-1-13 15:17:08编辑过]

答案和详解如下：

Q5. Utilizing the information given above, which of the following measures of productivity should produce the highest number, all other things being equal?

A)   GNI.

B)   GDP at market prices.

C)   GDP at factor cost.

Correct answer is A)

This can be solved intuitively and without calculations. GNI equals GDP plus net property income from abroad, so assuming a positive income number, GNI will be higher than GDP at either factor cost or market prices. NNI is simply GNI minus depreciation, so GNI will be higher than NNI.

Q6. Assume that a United States-owned company operates a production facility in India, and produces $25,000,000 of goods per year at that location. Which of the following statements regarding the production of the facility is most accurate?

A)   The production of the facility in India would not be included in the GDP measure for India.

B)   The production of the facility in India would not be included in the GDP measure for the United States.

C)   The production of the facility in India would not be included in the GNI measure for the United States.

Correct answer is B)         

GDP only counts the goods and services produced within the geographic boundaries of a country.

Q7. In order to convert GDP at factor cost to GDP at market prices, which of the following adjustments should be made to GDP at factor cost?

     Indirect Taxes            Subsidies

A) Add                                             Subtract

B) Subtract                                     Subtract

C) Subtract                                     Add

Correct answer is A)

GDP at factor cost is the net of taxes and subsidies, so an adjustment must be made for consistent comparison. Beginning with GDP at factor cost, add back indirect taxes and subtract subsidies to arrive at GDP at market prices.

Q8. Which of the following statements regarding the measurement of the productivity of a country is most accurate?

A)   The most comprehensive measure of a country’s expenditure component is derived by adding all consumption, investment, and export of goods and services.

B)   Income is presented as an index, with a base year’s income set equal to 100, and subsequent years expressed as a percentage of the base year.

C)   Output is considered to be the most reliable of the three measures, while expenditure is considered to be the least reliable.

Correct answer is A)

Total Final Expenditure (TFE) is used as a proxy for the expenditure component, and is the sum of consumption, investment, and export of goods and services.

Q9. Which of the following would NOT be included in the calculation of Gross Domestic Product (GDP) for the United States?

A)   Profits of a factory in located in California that is owned by a Japanese corporation.

B)   Rental income from apartment buildings located in Texas.

C)   Profits from a customer service center located in India that is owned by a U.S. corporation.

Correct answer is C)

The GDP calculation includes only counts those goods and services produced within the geographic boundaries of the country.

Q10. Gross Domestic Product (GDP) typically understates a country’s productivity because it does not fully account for:

A)   the country’s shadow economy.

B)   depreciation / depletion of assets.

C)   any productive assets physically located in other countries.

Correct answer is A)

Transactions that are intentionally hidden from authorities (for whatever reason) cannot be included in a measure of productivity, thus resulting in an understatement of a country’s productivity.

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