lect 1

• The sum of all values added in an economy is called gross value added (GVA) at basic prices.
• What is a firm's contribution to total output called?

  Value added
• Gross domestic product (GDP) can only be calculated in one way.

  False
• What are the three ways to calculate GDP?

  1️⃣ Sum of all values added

  2️⃣ Sum of income claims generated

  3️⃣ Sum of expenditures on final goods
• What are the two types of prices used to measure GDP accurately?

  Market and constant prices
• Potential GDP is the level of real GDP when there is no cyclical unemployment.
• GDP can be measured from the sum of incomes, values added, or final expenditures.


  True
• What is another term for potential GDP?

  Full-employment GDP
• A negative GDP gap indicates that GDP is above potential.

  False
• Real GDP is calculated to reflect changes in real volumes of output and real income.
• What does GNI add to or subtract from GDP?

  Net income from overseas
• What does the term "gross" in GDP refer to?

  No allowance for depreciation
• Match the concept with its description:

  GDP ↔️ Best measure of economic activity

  GNI per capita ↔️ Used for international comparisons

  Underground economy ↔️ Excluded from GDP
• Macroeconomics studies specific products and sectors in detail.

  False
• What are some examples of aggregate phenomena studied in macroeconomics?

  Inflation and unemployment
• Managers create systems and conditions that enable others to perform tasks
• Effectiveness is the use of minimal resources to produce desired output.

  False
• Organizations are social entities that are goal-directed and deliberately structured
• Management is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling resources.


  True
• Match the management skill with its description:

  Conceptual Skills ↔️ Ability to see the organization as a whole

  Human Skills ↔️ Ability to work with and through people

  Technical Skills ↔️ Proficiency in specific tasks
• Common management failures include poor communication and failure to listen to employees
• Top managers are responsible for day-to-day operations in organizations.

  False
• Arrange the management types in hierarchical order from highest to lowest level:

  1️⃣ Top Managers

  2️⃣ Middle Managers

  3️⃣ First-Line Managers
• Managers enjoy controlling subordinates and handling paperwork.

  False
• First-line supervisors experience the most job burnout and attrition
• Match the managerial role with its example:

  Leader ↔️ Motivating employees

  Liaison ↔️ Building external relationships

  Negotiator ↔️ Resolving conflicts

  Monitor ↔️ Gathering information
• The liaison role involves building relationships with external stakeholders
• Managers must focus on multitasking due to the variety, fragmentation, and brevity of tasks.


  True
• Small businesses often fail due to inadequate management skills.


  True
• Today’s best managers focus on coaching and providing guidance