2.1 The level of overall economic activity

Using the data in Table 3, calculate the level of investment.

Calculate the real growth rate in 2018 using the figures in Table 4 below.

Table 4

To what extent is the use of national income statistics an effective way of comparing the standard of living between countries?

Discuss the view that, apart from indicating economic growth rates over time, national income statistics are of little use.

Calculate gross domestic product (GDP) for Country X in 2015.

Calculate gross national income (GNI) for Country X in 2015.

Identify the term represented in Figure 4 by the letter V.

Identify the term represented in Figure 4 by the letter M.

State the four factor payments which constitute the income flow in the circular flow of income model.

Determine the size of the budget surplus/deficit and state which using Figure 4.

Define the term real gross domestic product (GDP) indicated in bold in the text (paragraph [2]).

Define the term investment indicated in bold in the text (paragraph [2]).

Explain the impact that a cut in taxation and an increase in government spending might have on the circular flow of income.

Discuss whether the real gross national income (GNI) per capita of a country is a good indicator of its standard of living.

State the reason for the difference between Ghana’s GNI per capita and its GDP per capita (Table 1).

Using the information in Table 2 for Country B calculate nominal GDP in 2014. Enter your result in Table 2.

Using the information in Table 2 for Country B calculate nominal GNI in 2015. Enter your result in Table 2.

Using the information in Table 2 for Country B, determine real GDP in 2014 and in 2015. Enter your results in Table 2.

Define the term gross domestic product (GDP) indicated in bold in the text (paragraph [3]). 

Explain how the size of the circular flow of income in an economy is likely to be affected by a decrease in the rate of interest.

Define the term gross domestic product (GDP) per capita indicated in bold in the text (paragraph [1]).

With reference to the data in Table 2, explain why the GNI per capita for Guatemala is lower than its GDP per capita.

Calculate Averna’s nominal gross domestic product (GDP) in 2019.

Using your answer to part (a), calculate Averna’s real GDP per capita in 2019.

Explain two reasons why an increase in real GDP per capita may not lead to an improvement in living standards.

Calculate the total welfare loss resulting from the imposition of the tariff on chia seeds.

Explain the impact that a cut in taxation and an increase in government spending might have on the circular flow of income.

Discuss whether the real gross national income (GNI) per capita of a country is a good indicator of its standard of living.

Explain the impact that a cut in taxation and an increase in government spending might have on the circular flow of income.

Discuss whether the real gross national income (GNI) per capita of a country is a good indicator of its standard of living.

State the reason for the difference between Ghana’s GNI per capita and its GDP per capita (Table 1).

State the reason for the difference between Ghana’s GNI per capita and its GDP per capita (Table 1).

Using the information in Table 2 for Country B calculate nominal GDP in 2014. Enter your result in Table 2.

Using the information in Table 2 for Country B calculate nominal GNI in 2015. Enter your result in Table 2.

Using the information in Table 2 for Country B, determine real GDP in 2014 and in 2015. Enter your results in Table 2.

Using the information in Table 2 for Country B calculate nominal GDP in 2014. Enter your result in Table 2.

Using the information in Table 2 for Country B calculate nominal GNI in 2015. Enter your result in Table 2.

Using the information in Table 2 for Country B, determine real GDP in 2014 and in 2015. Enter your results in Table 2.

Define the term gross domestic product (GDP) indicated in bold in the text (paragraph [3]). 

Define the term gross domestic product (GDP) indicated in bold in the text (paragraph [3]). 

Explain how the size of the circular flow of income in an economy is likely to be affected by a decrease in the rate of interest.

Explain how the size of the circular flow of income in an economy is likely to be affected by a decrease in the rate of interest.

Define the term gross domestic product (GDP) per capita indicated in bold in the text (paragraph [1]).

Define the term gross domestic product (GDP) per capita indicated in bold in the text (paragraph [1]).

With reference to the data in Table 2, explain why the GNI per capita for Guatemala is lower than its GDP per capita.

With reference to the data in Table 2, explain why the GNI per capita for Guatemala is lower than its GDP per capita.

Calculate Averna’s nominal gross domestic product (GDP) in 2019.

Using your answer to part (a), calculate Averna’s real GDP per capita in 2019.

Explain two reasons why an increase in real GDP per capita may not lead to an improvement in living standards.

Calculate Averna’s nominal gross domestic product (GDP) in 2019.

Using your answer to part (a), calculate Averna’s real GDP per capita in 2019.

Explain two reasons why an increase in real GDP per capita may not lead to an improvement in living standards.

Calculate the total welfare loss resulting from the imposition of the tariff on chia seeds.

Calculate the total welfare loss resulting from the imposition of the tariff on chia seeds.

Using the data in Table 3, calculate the level of investment.

Calculate the real growth rate in 2018 using the figures in Table 4 below.

Table 4

Using the data in Table 3, calculate the level of investment.

Calculate the real growth rate in 2018 using the figures in Table 4 below.

Table 4

To what extent is the use of national income statistics an effective way of comparing the standard of living between countries?

To what extent is the use of national income statistics an effective way of comparing the standard of living between countries?

Discuss the view that, apart from indicating economic growth rates over time, national income statistics are of little use.

Discuss the view that, apart from indicating economic growth rates over time, national income statistics are of little use.

Calculate gross domestic product (GDP) for Country X in 2015.

Calculate gross national income (GNI) for Country X in 2015.

Identify the term represented in Figure 4 by the letter V.

Identify the term represented in Figure 4 by the letter M.

State the four factor payments which constitute the income flow in the circular flow of income model.

Determine the size of the budget surplus/deficit and state which using Figure 4.

Calculate gross domestic product (GDP) for Country X in 2015.

Calculate gross national income (GNI) for Country X in 2015.

Identify the term represented in Figure 4 by the letter V.

Identify the term represented in Figure 4 by the letter M.

State the four factor payments which constitute the income flow in the circular flow of income model.

Determine the size of the budget surplus/deficit and state which using Figure 4.

Define the term real gross domestic product (GDP) indicated in bold in the text (paragraph [2]).

Define the term real gross domestic product (GDP) indicated in bold in the text (paragraph [2]).

Define the term investment indicated in bold in the text (paragraph [2]).

Define the term investment indicated in bold in the text (paragraph [2]).

Calculate the total welfare loss resulting from the imposition of the tariff on chia seeds.

Calculate the total welfare loss resulting from the imposition of the tariff on chia seeds.

Calculate the total welfare loss resulting from the imposition of the tariff on chia seeds.