DP Economics Questionbank

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

Define the term gross domestic product indicated in bold in the text (paragraph [4]).

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.

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

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.

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

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

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

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.

In many developing countries GNI figures are lower than GDP figures. Outline how this may be due to the high levels of foreign direct investment (FDI) in developing countries.

Define the term gross domestic product (GDP) indicated in bold in the text (Text D, paragraph [1]).

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

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

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

Using the data in Table 2, calculate factor income sent (paid) abroad in 2019.

In many developing countries GNI figures are lower than GDP figures. Outline how this may be due to the high levels of foreign direct investment (FDI) in developing countries.

The following diagram illustrates the long-run aggregate supply curve (LRAS), short-run aggregate supply curve (SRAS) and aggregate demand curve (AD) for Country Beta before the increase in investment.

The increase in investment results in both short-run and long-run effects on the economy. On the diagram above, draw and label the two curves that illustrate these effects.

In Country Beta, investment by firms increases in the first quarter of 2019.

The following diagram illustrates the long-run aggregate supply curve (LRAS), short-run aggregate supply curve (SRAS) and aggregate demand curve (AD) for Country Beta before the increase in investment.

The increase in investment results in both short-run and long-run effects on the economy. On the diagram above, draw and label the two curves that illustrate these effects.

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

Table 4

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, determine real GDP in 2014 and in 2015. Enter your results in Table 2.

Using data from Table 2, state the reason why there is a difference between the real GDP growth rate and the real GDP per capita growth rate between 2015 and 2019.

An economist forecasts that the real GDP growth rate in 2020 will be 3.41 %. Using the data in Table 2, calculate the forecast for real GDP ($ million) in 2020.

Using information from Table 3, calculate real GDP (at 2010 prices) in 2019 using the price deflator.

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

Using data from Table 2, state the reason why there is a difference between the real GDP growth rate and the real GDP per capita growth rate between 2015 and 2019.

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

Using a business cycle diagram from 2010 to 2019, explain how cyclical unemployment may have changed during the economic boom (paragraph [1]) and the recession (paragraph [2]) in Brazil.

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

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