I. True or False: Carefully read each statement. Shade T if it is 14.

Unemployment characterized by a mismatch between the

true, shade F if it is false. demand and supply of labor is said to be structural.
15. The income approach adds all the expenses incurred by the
1. Macroeconomics analysis the behavior of the entire economy. household, business, government, and foreign sectors.
2. Internal and external sectors are the two basic sectors that State in what approach of calculating national income the following items
affect the overall performance of the economy. are used. Write Income, Expenditure or Industrial Origin on the
3. Combined decision of all households and firms determines the space provided
level of production of the economy as a whole 1. agriculture
4. GNP is the total market value of goods and services produced 2. fishery
by citizens in one year.
3. forestry
5. Under the condition of trade imbalance the total income (Y)
equates with the total expenditures (C + I + G + X n ) 4. governement purchases
6. GDP is the total market value of goods and services produced 5. household consumptions
within the territories of a country in one year.
6. industrial sector
7. Revenues earned by Filipinos abroad are included in the
Philippines GDP. 7. interests
8. Raw materials are non-final goods and are included in the 8. investments of firms
computation of GNP and GDP.
9. exports of goods
9. The amount currently received from sale of a house which was
built in 2005 will become part of the countrys GNP for 2016. 10. profits

10. The value of GNP in industrial Origin Approach is the total of 11. rents
the added values of different productive economic sectors.
12. service sector
11. Second hand sales are not included in the computation of GNP.
13. wage
12. Final goods are ready for use and do not require further
processing before production. 14. imports of goods
13. Expenditure approach of calculating national income sums up 15. factor income from the rest of the world
all the payments for different production inputs.