Question

28) While calculating GDP, goods and services that are produced and sold illegally and items that are produced and consumed at home are not included because __________

Select one:

a. government wants to discourage these production and consumption

b. it does not contribute much value to GDP

c. these goods and services does not pay taxes

d. measuring them is so difficult

29) Khalid steel company sells steel worth OMR 45,500 to a desert driven bike manufacturer, National company. The sales of National company reaches OMR 73,800. So, the contribution to GDP is ________________

Select one:

a. OMR 28300

b. OMR 119,300

c. OMR 73800

d. OMR 45500

14) We associate the term debt finance with the bond market, and we associate the term equity finance with the stock market.

Select one:

a. True

b. False

7) Country A has a population of 1,000, of whom 700 worked an average of 8 hours a day and had a productivity of 2.5. Country B has a population of 800, of whom 560 worked 8 hours a day and had productivity of 3.0. The country with the higher real GDP is country B.

Select one:

a. True

b. False

Answer 1

28) Answer-D
Measure them is so difficult .
The illegal purchase and sale of goods and services doesn't not mentioned in any record. These called a black economy. It is difficult to determine the quantity of these goods and the transactions made in this regard.
Also the goods and services produced and consumed at home are difficult to measure. Foe example if you make some eatable items or pay Gardner or plumber for services are not mentioned in any record.

29) Answer- C
Because the final goods and services are included in GDP. Raw material or medium goods in production are not included in GDP.

14) Answer- True
Because bonds are liability or loan or debt on issuer. The issuer or company has to pay a yield on bonds. Bonds have a maturity period.
But stocks or shares are called equity because a share holder is the equal participants (according the quantity of share he holds) in the profit or loss of the company. Share has no maturity period. It depends on share holder whenever he wants to sale his share.

7) Answer- False
Total Real GDP of country A (for a working day)
=Working people*working hours*productivity
=700*8*2.5
=14000
Per capita Real GDP= Real GDP/population
=14000/1000=14

Total Real GDP of country B (for a working day)
=Working people*working hours*productivity
=560*8*3
=13440
Per Capita Real GDP = Real GDP/population
=13440/800=16.8

But Country B has higher Per capita Real GDP than country A.