Gross National Income (GNI)

question 185

Multiple Choice

Gross national income (GNI) :

• A) is the total market value of goods, but not services, produced in a year.
• B) is an excellent basis for comparing consumer well-being across different cultures and economies.
• C) is a measure similar to GDP but does not include income earned by foreigners who own resources in that nation.
• D) is the total market value of services, but not goods, produced in a year.
• E) All of these are true.

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount that they actually do pay.

World Price

The price of a good that prevails in the global market for internationally traded goods.

Trade Restrictions

Measures imposed by governments to limit international trade for various reasons, including protecting domestic industries.

Domestic Supply

The total amount of a product or service that is available to consumers in a domestic market.