1. Why in microeconomics do we measure production in terms of quantity, but in
macroeconomics, we measure production in term of market value?
2. Describe the four major components of expenditures in ship between GDP and the four
expenditure components.
3. What is the underground economy? Why do some countries have larger underground
economies than other countries?
4. What is GDP deflator, and how is it calculated?
5. What is the differences between GDP and GNP? Briefly explain whether the difference
is important for the United Sate
6. What are the differences between national income, personal income, and disposable personal income?
