Question

40.          Ashton, an economics professor at the University of California, believes that gross domestic product (GDP) focuses on domestic production. Which of the following statements supports his beliefs?

1. GDP takes into consideration where the output is produced.
2. GDP takes into consideration who owns the asset producing the output.
3. GDP determinesthe output that domestic companies make abroad.
4. GDP determines who is benefiting from a country’s production.

____41.  Before starting its operations in Viscosia, a country in South America, Kite Inc., an American consumer electronics company, wants to assess the overall well-being of Viscosia. The factors that Kite is considering are health, education, and economics of Viscosia. Which of the following measures can help Kite in this scenario?

1. The Human Development Index
2. The purchasing power parity
3. The Gini coefficient
4. The Consumer Price Index

____ 42.The government of Ligesia, a country in South America, has lowered its taxes by 25 percent. Consequently, the discretionary income of its citizens has increased, which in turn has increased their private spending. In the given scenario, the government of Ligesia has used _____.

1. fiscal policy                                                                                            C.        an open-door policy
2. monetary policy                                                                         D.        a commercial policy

Answer 1

40.          Ashton, an economics professor at the University of California, believes that gross domestic product (GDP) focuses on domestic production. Which of the following statements supports his beliefs?

Correct answer is "A. GDP takes into consideration where the output is produced."

GDP – Gross Domestic Product is the value of total output produced in an economy over a period of time.

41.  Before starting its operations in Viscosia, a country in South America, Kite Inc., an American consumer electronics company, wants to assess the overall well-being of Viscosia. The factors that Kite is considering are health, education, and economics of Viscosia. Which of the following measures can help Kite in this scenario?

Correct answer is "A. The Human Development Index"

Human Development Index (HDI) is a statistic composite index of life expectancy, education, health and per capita income indicators, which are used to rank countries into four tiers of human development.

42.The government of Ligesia, a country in South America, has lowered its taxes by 25 percent. Consequently, the discretionary income of its citizens has increased, which in turn has increased their private spending. In the given scenario, the government of Ligesia has used _____

Correct answer is 'A. fiscal policy"   

Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy.

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