100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
IB Economics Macroeconomics Exam Questions And Answers 2025 Update. $12.49
Add to cart
Quickly navigate to
Preview
  2.  
  3. IB Economics Macroeconomics
  4.  
  5. IB Economics Macroeconomics

Exam (elaborations)

IB Economics Macroeconomics Exam Questions And Answers 2025 Update.
 0 purchase
  • Course
  • IB Economics Macroeconomics
  • Institution
  • IB Economics Macroeconomics

©THESTAR 2024/2025 ALL RIGHTS RESERVED 10:08PM. 1 IB Economics Macroeconomics Exam Questions And Answers 2025 Update. Five major objectives of macroeconomic policies. - Answer•Economic growth: A steady rate of increase of national output •Full Employment: A low level of unemployment •...

[Show more]

Preview 3 out of 24  pages

Document information

  • March 6, 2025
  • 24
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • ib economics macroeconomics exam questions and ans

Written for

  • IB Economics Macroeconomics
  • IB Economics Macroeconomics

Seller

avatar-seller
TheStar

Reviews received

Content preview

©THESTAR 2024/2025 ALL RIGHTS RESERVED 10:08PM.




IB Economics Macroeconomics Exam
Questions And Answers 2025 Update.


Five major objectives of macroeconomic policies. - Answer✔•Economic growth: A steady rate
of increase of national output
•Full Employment: A low level of unemployment
•Price stability: A low and stable rate of inflation
•Satisfactory balance of payments
•Equal Income distribution : An equitable distribution of income
Describe, using a diagram,
the circular flow of income
between households and
firms in a closed economy

with no government. - Answer✔See notes
Identify the four factors
of production and their
respective payments and
explain that these constitute

the income flow in the model. - Answer✔•factors of production households provide to firms:
→land
→labour
→capital
→enterprise.
•The firms, in return pay the factors of production:


1

,©THESTAR 2024/2025 ALL RIGHTS RESERVED 10:08PM.


→wages
→rent
→interest
→profit

Relationship between income flow, expenditure flow and output flow. - Answer✔Income
flow=expenditure flow + output flow
Describe, using a diagram,
the circular flow of income
in an open economy with
government and financial
markets, referring to leakages/
withdrawals (savings, taxes
and import expenditure)
and injections (investment,
government expenditure and

export revenue). - Answer✔See notes

Define national income. - Answer✔Measures the monetary value of the flow of output of goods
and services produced in an economy over a period of time.

3 measures of national income. - Answer✔Most commonly used measure of countries national
income is GDP. 3 different methods to calculate this:
1. The output method (measures actual value of goods and services produced)
2. The income method (value of all incomes earned in economy)
3. Expenditure method (measures value of all spending on goods and services)

Distinguish between GDP and GNP/GNI as measures of economic activity. - Answer✔GROSS
DOMESTIC PRODUCT (GDP):
•value of final goods and services produced within a country in a given period
•It is the total of all activities in a country, regardless of who owns the productive asset.
GROSS NATIONAL PRODUCT (GNP/GNI):
•market value of all products and services produced in one year by labour and property
supplied by the residents of a country.

2

, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 10:08PM.


Define and distinguish between gross national product (GNP) and gross domestic product
(GDP). - Answer✔GNP=GDP+net property income from abroad (income earned from assets
overseas)
GDP= C+I+G+(X-M)
Unlike Gross Domestic Product (GDP), which defines production based on the geographical
location of production, GNP allocates production based on ownership. It is the total income
that is earned by a country's factors of production regardless of where the assets are located.
Define and distinguish between gross national product(GNP) and net national product (NNP). -
Answer✔NNP=GNP-Depreciation (capital consumption)

Define and distinguish between nominal GDP and real GDP. - Answer✔Real GDP=Nominal GDP
adjusted for inflation.

Explain the uses of national income statistics. - Answer✔Shows:
•economic growth (is an increase in national income over time)
•develop policies
•develop models of economy to make forecasts
•performance
•identifying changes in consumption, investment
•evaluate living standards
•basis for comparing different countries

Explain the limitations of using national income statistics. - Answer✔•Inaccuracies unrecorded
or under-recorded economic activity
•external costs (resource depletion, pollution)
•other quality of life concerns (people may be earning higher incomes but not enjoy higher
standards of living, not account free activities such as volunteer work)
•composition of outputs (large part of countries output is in goods that do not benefit
consumers such as defence or capital goods)

Evaluating National income statistics. - Answer✔•GDP is a measure of the value of production
in terms of market prices
•indicator of economic activity, not a measure of a nations overall welfare
•unreliable show of an economies health as it:
→excludes nonmarket production (household services of homemakers)
→legal versus illegal activities

3

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller TheStar. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $12.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

70713 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling

Recently viewed by you

Summary ·

(1)

Samenvatting aangepast functioneel trainen theorie, semester 3

Exam (elaborations) ·

(9)

A&P 1 101 Module 2 Exam Questions and Answers- Portage Learning

Summary ·

(1)

Samenvatting Gedragsfinanciering - Behavioural Finance F710399A

Summary ·

(0)

Complexiteit van opvoeding in diversiteit - samenvatting deel 2

Package deal ·

(0)

OCR A level Physics A Module 6: Particle and Medical Physics

Summary ·

(1)

Cell Gene Tissue: Samenvatting (slides + informatie uit de lessen)

Summary ·

(1)

Samenvatting Onderneming & Aansprakelijkheid (Eigen cijfer: 10)

Exam (elaborations) ·

(0)

SFST | 41 Complete Questions and Answers 100% Verified | 2024-2024

Exam (elaborations) ·

(0)

HESI A2 MATH AND BIOLOGY 2023 UPDATED VERSION QUESTIONS AND ANSWERS
$12.49
  • (0)
Add to cart
Added