4.1.4 Uses of national income data

• National Income Data includes measures such as Gross Domestic Product (GDP) and Gross National Income GNI
• Comparing National Income Data per capita provides insights into differences in living standards across countries.
• Steps in collecting National Income Data using surveys

  1️⃣ Sampling

  2️⃣ Data collection

  3️⃣ Estimation
• Administrative data is often more readily available but may lack certain information.


  True
• The key difference between GDP and GNI is that GDP focuses on production within a country's borders
• What does GDP per capita measure?

  Average production per person
• GDP per capita provides a better indication of a country's standard of living than total GDP alone.


  True
• National income data allows economists to track changes in a country's total output over time
• Match the macroeconomic variable with its definition:

  GDP ↔️ Total value of production within borders

  GNI ↔️ Total income earned by residents
• Economic growth is measured by an increase in a country's Gross Domestic Product (GDP) over time
• GDP and GNI fully capture a country's standard of living and poverty levels.

  False
• GDP measures the total value of all goods and services produced within a country's borders
• National Income Data allows economists to track changes in a country's total output
• National Income Data helps assess the impact of government policies
• Surveys provide more detailed data but are resource-intensive.


  True
• Match the measure with its definition:

  GDP ↔️ Total value of goods and services produced within a country

  GNI ↔️ Total income earned by a country's residents
• GDP per capita is used to compare living standards between countries.
• Gross Domestic Product (GDP) measures the total value of all goods and services produced within a country's borders
• What are the two main examples of national income data measures?

  GDP and GNI
• Methods of collecting national income data

  1️⃣ Surveys using sampling

  2️⃣ Administrative data using statistical analysis
• GNI provides a better measure of a country's economic well-being than GDP.


  True
• What is used to compare living standards between countries?

  GDP per capita
• What are the two main measures of national income?

  GDP and GNI
• What does GNI include that GDP does not?

  Income from abroad
• What type of economic activity is not captured by GDP or GNI?

  Unpaid household work
• What are the two main types of government fiscal policies?

  Expansionary and contractionary
• What is the primary goal of contractionary fiscal policy?

  Control inflation
• Match the fiscal policy with its economic effect:

  Expansionary Fiscal Policy ↔️ Stimulates economic activity

  Contractionary Fiscal Policy ↔️ Reduces inflation
• Expansionary monetary policy lowers interest rates to increase economic activity.


  True
• What is a key limitation of using GDP and GNI to measure living standards?

  They ignore income distribution
• The Gini coefficient measures the equality of income distribution within a country.


  True
• How does national income data help in policy making?

  Evaluates policy effectiveness
• GDP focuses on production within a country's borders
• GDP focuses on production within a country's borders, while GNI focuses on income earned by a country's residents.


  True
• What is GDP per capita used to compare between countries?

  Living standards
• Poverty levels indicate the proportion of a population living below a defined poverty line
• Expansionary fiscal policy involves increasing government spending and/or reducing taxes.


  True
• Match the policy type with its economic effect:

  Expansionary fiscal policy ↔️ Stimulates economic activity, increases GDP

  Contractionary fiscal policy ↔️ Slows economic growth, reduces inflation
• Expansionary monetary policy lowers interest rates to stimulate consumer spending and business investment
• High GDP always indicates a high standard of living for all residents.

  False