FDNECON 02 · Measuring Output and Equilibrium
Conventions
Original source-based practice for FDNECON Quiz #2. Questions are independent: use only each item’s complete givens. Amounts and units are stated in every numerical case. Numeric written answers omit currency symbols and units; rates are entered as numerical percentages (5 means 5%). Round only the final result to two decimals unless instructed otherwise. The course money-market diagram treats supply as vertical and policy-determined, with downward-sloping demand and other determinants fixed. Numerical money-demand equations, finite/infinite spending chains, gap percentages and multiplier/tax formulas are fully stated hypothetical practice extensions, not claims about measured Philippine outcomes or guaranteed policy effects. Expenditure and income approaches remain separate; foreign-income boundary inconsistencies in the source are explained in the reviewer. No question requires an unprovided graphic or another item’s answer.
Questions
01What is GDP by the expenditure approach?
Problem
Annual amounts, all ₱bn: C=700; I=200; G=310; exports=100; imports=160; government transfers=40; wage subtotal=500. C, I and G already include any imported spending. Use only expenditure components.
- ₱1,210 billion
- ₱1,150 billion
- ₱1,020 billion
- ₱1,470 billion
02Which item is included in I in this course framework?
- A consumer buys an imported meal; it is automatically domestic investment.
- Government pays a cash assistance transfer.
- Buying existing company shares.
- A household buys newly built housing.
03Why are imports subtracted in Y=C+I+G+X−M?
- Because no imported good can meet a consumer need.
- Because importing is itself a tax.
- To remove foreign production already present in spending categories.
- To remove all production by foreign-owned domestic factories.
04True or false: a government cash transfer and a government purchase of teaching services are both directly G in expenditure GDP.
- True
- False
05What is GDP from this production chain?
Problem
One domestic chain in one period has first-stage sales ₱150 with zero purchased inputs; second-stage sales ₱350 using only the first-stage product; final-stage sales to consumers ₱800 using only the second-stage product. No imports or other inputs.
- ₱800
- ₱950
- ₱1,300
- ₱650
06What is this retailer’s value added?
Problem
A retailer sells current domestic output for ₱900 and buys the goods from a domestic producer for ₱540 during the same period. No other intermediate inputs.
- ₱900
- ₱1,440
- ₱360
- ₱540
07What is current nominal GDP?
Problem
Output is 100 meals and 20 notebooks this year. Current prices are ₱30 per meal and ₱50 per notebook. Base prices are ₱20 and ₱40.
- ₱2,800
- ₱3,800
- ₱3,000
- ₱4,000
08What is current real GDP at base prices?
Problem
Current output is 100 meals and 20 notebooks. Base prices are ₱20 and ₱40; current prices are ₱30 and ₱50. Use the stated fixed-price classroom method.
- ₱3,800
- ₱2,800
- ₱4,000
- ₱3,000
09What is real GDP growth?
Problem
The only product has output of 40 units in each year. Its price rises from ₱20 in the base year to ₱30 currently.
- 25%
- 0%
- 50%
- 20%
10What is the six-term income-approach total?
Problem
All amounts are ₱bn: wages=500, rent=70, interest=40, profits=180, depreciation=60, indirect business taxes=80. Net foreign income, subsidies and other adjustments are zero; these are the complete domestic components.
- ₱850 billion
- ₱1,010 billion
- ₱870 billion
- ₱930 billion
11What is the corresponding national aggregate?
Problem
GDP is ₱1,000bn. Net factor/primary income from abroad is −₱40bn. Use the explicitly stated standard bridge GNI/GNP=GDP+net income from abroad.
- ₱1,000 billion
- ₱960 billion
- ₱40 billion
- ₱1,040 billion
12True or false: foreign ownership excludes a factory’s domestically produced goods from domestic GDP.
- True
- False
13Which operation would double-count the same output?
- Using value added for each stage.
- Adding an income GDP total to an expenditure GDP total.
- Using the two totals to check consistency.
- Counting only the final sale once.
14What is net exports, and what is its effect within this expenditure sum?
Problem
Exports are ₱150bn and imports are ₱220bn, with consistent annual measurement.
- NX=₱370bn; add all trade flows.
- NX=−₱70bn; subtract ₱70bn from C+I+G.
- NX=+₱70bn; add ₱70bn to C+I+G.
- NX=−₱220bn; ignore exports.
15Which statement keeps the concepts separate?
- Net exports concerns trade; net foreign factor income concerns income receipts less payments across borders.
- Net factor income is all domestic consumption.
- A positive NX proves all domestic firms are domestically owned.
- Net exports and net factor income are both X−M.
16What is the implied real GDP under the supplied index formula?
Problem
Nominal GDP is ₱600bn. The problem supplies an output-price index of 120 (base=100) and the relation Real GDP=Nominal GDP/(index/100). Use that relation.
- ₱6 billion
- ₱625 billion
- ₱500 billion
- ₱750 billion