Natural Resources and the Environment Toward Sustainable Development

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1.Which of the following items is not included in the calculation of the UK's GDP?

Legal services bought by someone purchasing a houseA brand-new Nissan vehicle made in SunderlandCopper acquired by the tap maker BristanA newly constructed art gallery acquired by Newcastle city councilLawn maintenance services hired by a homeowner

2.Real GDP is calculated using _ prices, whereas nominal GDP is calculated using _ prices.

international; localprices of the current year; prices of the base yearlocal; internationalprices from the base year; prices from the current yearprices of intermediate goods; prices of final goods

3.A cobbler purchases leather for Rs100 and thread for Rs50, then crafts and sells shoes valued at Rs500 to customers. What is the contribution to GDP from this activity?

Rs50Rs100Rs650Rs500

4.What does Gross Domestic Product (GDP) represent in terms of market value?

Goods used as inputs in productionFinished goods and services sold in the marketProducts that have been manufacturedGoods and services considered of lower qualityAll goods and services regardless of production stage

5.Which of the following represents the components used to calculate Gross Domestic Product?

final and intermediate goods, transfer payments, and rental incomeconsumer spending, investments, government expenditures, and net exportsconsumer spending, transfer payments, salaries, and earningsNet National Product, Gross National Product, and Disposable Personal Incomeinvestments, wages, profits, and intermediate goods production

6.What term describes the reduction in value of plant and equipment due to use during the production of goods and services?

7.Why might a rise in GDP per capita not necessarily indicate an actual improvement in people's quality of life?

Because it reflects total wealth rather than individual earningsSince it represents the Gross Domestic ProductAs it does not account for the quality of goods producedBecause it is calculated only once every five years

8.Which adjustment is required to convert Gross National Product (GNP) into Net National Product (NNP)?

9.What typically happens to supply during an economic boom?

Excess goods are expected to accumulateMarket prices tend to decreaseSupply rises promptly to meet the higher demandProduct shortages can arise

10.Which metric is commonly used to assess the standard of living?

Real GDP per personTotal Real GDPReal GDP multiplied by populationReal GDP including depreciation