Which of the Following Observations Concerning Different Measures of National

question 260

Multiple Choice

Which of the following observations concerning different measures of national income is TRUE?

• A) GDP does not include income earned by foreigners who own resources in that nation.
• B) Using GNI can give the impression that people in less-developed countries have more income than they really do.
• C) GNI per capita is a useful figure because it gives some idea of the income level of people in the country.
• D) The less-developed nations account for the biggest share of the world's GDP.
• E) GDP is the only measure of national income.

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Definitions:

Antitrust Division

A section of the government tasked with enforcing laws to prevent unfair competition, monopolies, and to preserve market integrity.

Treble Damages

A legal award in a lawsuit that triples the amount of actual or compensatory damages, often granted in cases of willful wrongdoing.

Geographic Markets

Areas delineated by geographical boundaries within which a population might reasonably constitute a market for goods or services, often considered in economic and marketing analyses.

Monopoly

A market structure in which a single seller controls all production and sale of a particular product or service.