1.which of the following is a sign that an economy is in poor health? a) a prolo

Question

1.which of the following is a sign that an economy is in poor health? a) a prolonged decline in total output b) failure of total output to equal total income c) failure of output to remain constant over time d) a shift in production from goods to services e) a prolonged rise in total income

2.gross domestic product is defined as the total of all final goods and services produced _____ during a fixed period of time. a) by a nations public sector b) by a nations private sector c) within a nations borders d) for export by a nation e) for domestic consumption

Explanation / Answer

Answer

1)

the correct option is a) a) a prolonged decline in total output

A prolonged decline in total output leads to huge decline in the GDP which further leads to increase in unemployment and hence increase poverty. As employment is a major part of the economy, this simply implies economy is in bad health.

Note: A prolonged rise in income can sometimes shows that economy is in deep trouble as this prolonged increase in income leads to huge inflation in the economy. But if we have to choose between the 2 options we will choose (a).

2)

The correct option is c) within a nations borders

Because GDP is a value of all final goods and service produce within a domestic territory of a country during specific period of time

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