FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 7: Measuring Domestic Output and National Income

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

$\begin{array} { | l | r | } \hline \text { Consumption of Fixed Capital } & \$ 25 \\\hline \text { Government Purchases } & 315 \\\hline \text { US imports } & 260 \\\hline \text { Personal Taxes } & 45 \\\hline \text { Transfer Payments } & 247 \\\hline \text { US Exports } & 249 \\\hline \text { Personal Consumption Expenditures } & 475 \\\hline \text { Net Foreign Factor Income } & 5 \\\hline \text { Gross Private Domestic Investment } & 300 \\\hline \text { Taxes on Production and Imports } & 245 \\\hline \text { Undistributed Corporate Profits } & 60 \\\hline \text { Social Security Contributions } & 240 \\\hline \text { Corporate Income Taxes } & 65 \\\hline \text { Statistical Discrepancy } & 40 \\\hline\end{array}$ Refer to the accompanying national income data (in billions of dollars) . Disposable income is

A) $611 billion.
B) $659 billion.
C) $667 billion.
D) $686 billion.

E) C) and D)
F) None of the above

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following is included in GDP?

A) welfare payments received by some households
B) fees received by stockbrokers
C) cash gifts from relatives during the holidays
D) payments received from selling stocks in one's portfolio

E) A) and D)
F) A) and C)

Correct Answer

verified

B

Question 3

Multiple Choice

Review LaterAdd Note

$\begin{array} { | l | c | } \hline \text { Government Purchases } & \$ 15 \\\hline \text { Consumption } & 90 \\\hline \text { Gross Investment } & 20 \\\hline \text { Consumption of Fixed Capital (depreciation) } & 5 \\\hline \text { Exports } & 8 \\\hline \text { Imports } & 12 \\\hline\end{array}$ Refer to the accompanying data (all ?gures in billions of dollars) . NDP (net domestic product) is

Gross output (GO) reflects the overall status of the productive side of the economy better than GDP does.

GDP excludes

$\begin{array} { | l | r | } \hline \text { Personal Taxes } & \$ 23 \\\hline \text { Net Private Domestic Investment } & 33 \\\hline \text { Net Exports } & 6 \\\hline \text { National Income } & 278 \\\hline \text { U.S. Exports } & 20 \\\hline \text { Gross Private Domestic Investment } & 56 \\\hline \text { Disposable Income } & 220 \\\hline \text { Taxes on Production and Imports } & 32 \\\hline \text { Undistributed Corporate Profits } & 15 \\\hline \text { Proprietors' Income } & 45 \\\hline \text { Net Foreign Factor Income } & 0 \\\hline \text { Statistical Discrepancy } & 0 \\\hline\end{array}$ Refer to the accompanying national income data. All ?gures are in billions of dollars. The gross domestic product is

$\begin{array} { | r | l | r | } \hline 1 & \text { Consumption of Fixed Capital } & \$ 438 \\\hline 2 & \text { Taxes on Production and Imports } & 326 \\\hline 3 & \text { Compensation of Employees } & 2,347 \\\hline 4 & \text { Rents } & 14 \\\hline 5 & \text { Interest } & 287 \\\hline 6 & \text { Proprietors' Income } & 242 \\\hline 7 & \text { Corporate Profits } & 297 \\\hline 8 & \text { Personal Consumption Expenditures } & 2,582 \\\hline 9 & \text { Gross Private Domestic Investment } & 669 \\\hline 10 & \text { Government Purchases } & 815 \\\hline 11 & \text { Net Exports } & - 78 \\\hline 12 & \text { Net Foreign Factor Income } & 46 \\\hline 13 & \text { Statistical Discrepancy } & 50 \\\hline\end{array}$ Refer to the accompanying national income data (in billions of dollars) . Which items need to be accounted for in going from national income to GDP?

Tom Atoe grows fruits and vegetables for home consumption. This activity is

If in some year gross investment was $120 billion and net investment was $65 billion, then in that year the country's capital stock

Suppose nominal GDP was $360 billion in year 1 and $450 billion in year 2. The price index was 120 in year 1 and 125 in year 2. Between year 1 and year 2, real GDP

National income accountants can avoid multiple counting by

If real GDP is 50 and nominal GDP is 100, the GDP price index is 200.

Money spent on the purchase of a new house is included in the GDP as a part of

The ZZZ Corporation issued $25 million in new common stock in 2020. It used $18 million of the proceeds to buy new equipment to replace obsolete equipment in its factory and $7 million to repay Bank loans. As a result, investment

A nation's capital stock was valued at $300 billion at the start of the year and $350 billion at the end. Consumption of fixed capital in the year was $25 billion. Assuming stable prices, gross Investment was

Transfer payments are

In an economy that has stationary production capacity,

The concept of net domestic investment refers to

$\begin{array} { | l | c | } \hline \text { Personal Consumption Expenditures } & \$ 400 \\\hline \text { Government Purchases } & 128 \\\hline \text { Gross Private Domestic Investment } & 88 \\\hline \text { Net Exports } & 7 \\\hline \text { Net Foreign Factor Income } & 0 \\\hline \text { Consumption of Fixed Capital } & 43 \\\hline \text { Taxes on Production and Imports } & 50 \\\hline \text { Compensation of Employees } & 369 \\\hline \text { Rents } & 12 \\\hline \text { Interest } & 15 \\\hline \text { Proprietors' Income } & 52 \\\hline \text { Corporate Income Taxes } & 36 \\\hline \text { Dividends } & 24 \\\hline \text { Undistributed Corporate Profits } & 22 \\\hline \text { Statistical Discrepancy } & 0 \\\hline\end{array}$ Refer to the accompanying national income data for the economy. All ?gures are in billions of dollars. The gross domestic product for this economy is

Real GDP measures