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 101

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following is a final good or service?

A) a haircut purchased by a father for his 12-year-old son
B) fertilizer purchased by a farm supplier
C) diesel fuel bought for a delivery truck
D) Chevrolet windows purchased by a General Motors assembly plant

E) C) and D)
F) All of the above

Correct Answer

verified

Show Answer

Question 102

Multiple Choice

Review LaterAdd Note

Review Later

In national income accounting, the personal consumption expenditures category includes purchases of

A) both new and used consumer goods.
B) automobiles for personal use but not houses.
C) consumer durable and nondurable goods but not services.
D) consumer nondurable goods and services but not consumer durable goods.

E) None of the above
F) All of the above

Correct Answer

verified

Show Answer

Question 103

Multiple Choice

Review LaterAdd Note

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

If the economy adds to its inventory of goods during some year,

If nominal GDP is 150 and the GDP price index is 200, real GDP is 75.

In calculating GDP, governmental transfer payments, such as Social Security or unemployment compensation, are

$\begin{array} { | c | c | c | c | } \hline \text { Year } & \text { Units of Output } & \text { Price of Bagel per Unit } & \text { Price Index (Year 1=100) } \\\hline 1 & 10 & \$ 10 & 100 \\\hline 2 & 12 & 20 & 200 \\\hline 3 & 15 & 30 & 300 \\\hline 4 & 20 & 40 & 400 \\\hline\end{array}$ The table contains data for a hypothetical single-product economy. Real GDP in year 3 is

GDP is the

National income measures

$\begin{array} { | l | r | } \hline \text { Personal Taxes } & \$ 40 \\\hline \text { Social Security Contributions } & 15 \\\hline \text { Taxes on Production and Imports } & 20 \\\hline \text { Corporate Income Taxes } & 40 \\\hline \text { Transfer Payments } & 22 \\\hline \text { U.S. Exports } & 24 \\\hline \text { Undistributed Corporate Profits } & 35 \\\hline \text { Government Purchases } & 90 \\\hline \text { Gross Private Domestic Investment } & 75 \\\hline \text { U.S. Imports } & 22 \\\hline \text { Personal Consumption Expenditures } & 250 \\\hline \text { Consumption of Fixed Capital (depreciation) } & 25 \\\hline \text { Net Foreign Factor Income } & 10 \\\hline \text { Statistical Discrepancy } & 0 \\\hline\end{array}$ Refer to the accompanying data (all ?gures in billions of dollars) . DI is

In comparing GDP data over a period of years, a difference between nominal and real GDP may arise because

If real GDP in a particular year is $80 billion and nominal GDP is $240 billion, the GDP price index for that year is

In 1933, net private domestic investment was a minus $6.0 billion. This means that

In determining GDP by the expenditures method, it is appropriate to use net investment rather than gross investment as a measure of investment spending.

$\begin{array} { | c | c | } \hline \text { Stage of Production } & \text { Sales Value of Materials or Products } \\\hline \text { Firm } A & \$ 800 \\\hline \text { Firm } B & 1,250 \\\hline \text { Firm } C & 1,850 \\\hline \text { Firm } D & 2,600 \\\hline \text { Firm } E & 3,800 \\\hline\end{array}$ Firm A produces something that Firm B uses as an input. The product of Firm B, in turn, is purchased and used as an input by Firm C, and so on down the line through Firm E, which produces the ?nal Product. (See the accompanying table.) The total value added by Firms A-E from the production of The ?nal product described here is

Value added by a firm is the market value of the firm's output minus the

Business inventories increase when firms produce

In an economy, the value of inventories was $75 billion in year 1 and $63 billion in year 2. In calculating total investment for year 2, national income accountants would

Gross private domestic investment exceeds depreciation in an economy that experiences expanding production capacity.

A nation's gross domestic product (GDP)