EU20L4


  • 1
  • In 2002, the country of Derf's imports equalled its exports. Derf's GDP was £500 million, its consumption expenditure was £385 million, and its investment was £14 million. Derf's government purchases were ____________.

    £899 million
    £500 million
    zero
    £101 million


  • 2
  • Last year, the country of More has government purchases of £20 million. The government has a budget deficit of £3 million. Consumption expenditure is £7 million, and there is dissaving of £2 million. GDP in More was __________________.

    £32 million
    £28 million
    £22 million
    £26 million


  • 3
  • The country of Erdf has zero net exports. Government purchases are £15 million and the government has a budget surplus of £5 million. Investment is £5 million. Household saving in Derf is ___________________.

    zero
    £15 million
    £10 million
    £25 million


  • 4
  • If the government has a budget deficit and household saving is equal to investment, then _________________.

    imports exceed exports
    imports are less than exports
    imports equal exports
    injections do not equal leakages


  • 5
  • In the country of Darrowby, domestic income at factor cost is £1.5 million. Gross domestic product is £2.0 million. Indirect taxes less subsidies _________________.

    are £0.5 million
    are zero
    are £1 million
    cannot be calculated


  • 6
  • A typical household in Dref buys only oranges and pens. In the base year, it bought 400 oranges at £1.00 each and 800 pens at £0.75 each. This year, a household buys 500 oranges at £1.50 each and 850 pens at £1.00 each. The RPI this year is ____________.

    140
    160
    1.40
    62.5


  • 7
  • The planet of Sunev produces only two goods: lambs and vases. In the base year, it produced 50 lambs and 30 vases, and last year, it produced 60 lambs and 35 vases. Since the base year, the prices of these goods have been £4 a lamb and £5 a vase. Last year, nominal GDP was _____________ and real GDP was ___________.

    £350; £350
    £415; £415
    £415; £350
    £350; £415


  • 8
  • Which of the following statements is true?

    The RPI and the GDP deflator are always equal.
    The RPI and the GDP deflator are not always equal.
    The RPI is greater than the GDP deflator.
    The RPI is less than the GDP deflator.


  • 9
  • In Potato Land, farmers sell potatoes to factories for £100. Factories sell frozen chips and crisps to supermarkets fo £150. Supermarkets sell frozen chips and crisps to consumers for £300.

    The value added by the factories is £150.
    The value added by the supermarkets is £150.
    The total value added is £550.
    The value added by the supermarkets is £50.


  • 10
  • On the planet of Wedurn, the GDP deflator is 125 and nominal GDP is £12,500. The value of real GDP is ___________.

    £1,562,500
    £10,000
    £100
    £0.01