## Session 6 - Summary of First Part

We have at our disposal GDP and the value of personal income taxes. What is missing to be able to calculate the Net National Product (NNP)?
In Ecoland, the NFIA is positive, indirect taxes are 200 and subsidies and capital depreciation are equal to 100 each. What can we say with certainty?
The Consumer Price Index (CPI)
GDP at market prices is 100. Indirect taxes and subsidies are both equal to 10. Capital depreciation and net factor income abroad are both equal to 5. National income is then equal to :
In 2000, the number of unemployed individuals was 100, and the number of employed individuals was 900. In 2008, the number of unemployed individuals was 200 and the number of employed individuals was 1900. Which of the following is correct ?
Nominal GDP is 45,000 in 2005 and 60,000 in 2006. Real GDP measured in 2004 dollars (i.e., base year is 2004) is equal to 30,000 in 2005, and 40,000 in 2006. What can we say with certainty?
The CPI equals 154.5 in 2008, and 150 in 2007. During this period the real interest rate is 3%. What is the nominal interest rate?
The GDP in 2005 evaluated at 2001 prices was equal to 460, and the consumer price index in 2005 with base 100 in 2001 was equal to 105. We can say with certainty that :
Two countries have the same production function and quantities of production factors, except for the stock of capital. What will be the effect on productivity of an additional unit of capital in the two countries?
Consider the following production function : Y = A· F(L,K,H,N) with A being technological knowledge, L labor, K physical capital, H human capital and N natural resource endowments. Let’s assume that the production function exhibits constant returns to scale, and declining marginal factor productivity. Which of the following is correct ?
GDP is an imperfect measure of well-being because: