Practise national income, circular flow, aggregate demand and supply, growth, unemployment and inflation through calculations, data interpretation, diagrams and policy analysis.
What is not included in the measurement of national income?
dividends paid to shareholders
overtime payments
rents from government-owned houses
welfare benefit payments
What is a correct description of an aggregate demand (AD) curve?
It is a curve obtained by adding the market demand curves of all consumer goods traded in an economy.
It is a curve determined by the horizontal summation of all individual consumer demand curves for a product.
It is a curve that shows the total amount of goods and services firms are willing to buy at a given price in an economy.
It is a curve that shows the total demand of all goods and services produced at all price levels in an economy.
The graph shows the rate of inflation for seven countries for 2015 and 2016.
What can be concluded from this graph?
Prices in Costa Rica rose in 2015 but remained constant in 2016.
Prices in Ecuador and Mauritius were lower in 2016 than in 2015.
Prices in India and Malaysia remained constant in 2016 and 2015.
Prices in Thailand and Japan were lower in 2016 than in 2015.
For a given year, economy X publishes the following.
What is the size of the Gross National Income (GNI) for country X?
$ 75 bn
$ 85 bn
$ 110 bn
$ 115 bn