Fani Warraich ECONOMICS   -   Macroeconomics

Non-traded goods do not enter measured GDP because:

Non-traded goods, like services, are not included in GDP as they do not enter the market and hence lack market prices.
Fani Warraich ECONOMICS   -   Macroeconomics

Economic growth measures the:

Economic growth is commonly measured by the increase in a country's output of goods and services (GDP).
Fani Warraich ECONOMICS   -   Macroeconomics

The accelerator principle states:

The accelerator principle posits that investment is positively related to expected growth in output.
Fani Warraich ECONOMICS   -   Macroeconomics

There are strong theoretical reasons to expect that changes in wealth are responsible for changes in consumption. Nonetheless, one reason that we observe a tight link between consumption and disposable income is:

Household savings act as a buffer, making consumption less volatile relative to income fluctuations.
Fani Warraich ECONOMICS   -   Macroeconomics

With perfect income equality the Gini coefficient in a country would be

A Gini coefficient of 0 indicates perfect income equality, with no disparity in income distribution.
Fani Warraich ECONOMICS   -   Macroeconomics

A certain amount of goods and services is necessary for a minimum standard of living. This is called:

Basic needs refer to the minimum level of goods and services necessary to sustain a basic standard of living.
Fani Warraich ECONOMICS   -   Macroeconomics

When the manufacturer of power looms expands, there are forward linkage effects due to:

Forward linkage effects relate to increased production in downstream industries, like woven cloth in this case.
Fani Warraich ECONOMICS   -   Macroeconomics

Which of the following is not typically an element in the structural change that accompanies development?

Structural change usually involves a decrease in the share of agriculture in GDP as economies develop.
Fani Warraich ECONOMICS   -   Macroeconomics

A supply side vicious circle of poverty suggests that poor nations remain poor because:

Low savings and investment create a cycle of poverty by limiting capital accumulation and growth in poor nations.
Sumera Nawaz ECONOMICS   -   Macroeconomics

If a country's Gross Domestic Product (GDP) is $800 billion and its Gross National Product (GNP) is $750 billion, what is the value of net factor income from abroad (NFIA)?

GNP - GDP = NFIA, so $750 billion - $800 billion = -$50 billion. Since NFIA is negative, it means the country has a net outflow of income to the rest of the world, so the absolute value of NFIA is $50 billion.

ECONOMICS