Question 1

In a given year, U.S. nominal GDP was $2,784 billion and the GDP chain price index for that year is 60.4. Real GDP is:

Accepted Answer

A)   $1,682 billion.
B)   $4,609 billion.
C)   $3,889 billion.
D)   $4,000 billion.E) A) and B)
F) A) and C)

Question 2

Which of the following is included in personal income but not in national income?

Accepted Answer

A)   Compensation for workers.
B)   Proprietors' income.
C)   Corporate profits.
D)   Social Security payments.E) All of the above
F) A) and B)

Question 3

In recent years, people have benefited from greater amounts of leisure time. This trend:

Accepted Answer

A)   has caused GDP to rise.
B)   has caused GDP to fall.
C)   made GDP fluctuate randomly.
D)   is not accounted for in GDP.E) B) and D)
F) B) and C)

Question 4

Which one of the following statements is true ?

Accepted Answer

A)   Money flows from households to firms for resources.
B)   Money flows from households to foreign economies for exports.
C)   Money flows from government to firms for resources.
D)   Money flows from firms to households for resources.E) A) and D)
F) A) and C)

Question 5

Increased production, but not increased inflation, will result in higher:

Accepted Answer

A)   nominal GDP.
B)   money GDP.
C)   real GDP.
D)   current dollar GDP.E) C) and D)
F) B) and C)

Question 6

Durable and nondurable goods and services lumped together in the expenditure approach to measuring GDP are called:

Accepted Answer

A)   Personal consumption.
B)   Gross private domestic investment.
C)   Government spending.
D)   Inventory.E) A) and B)
F) A) and C)

Question 7

Exhibit 5-10 GDP data (billions of dollars)

In Exhibit 5-10, and using the income approach, GDP equals

Accepted Answer

A)   $8,350 billion.
B)   $9,710 billion.
C)   $5,400 billion.
D)   $8,400 billion.E) A) and D)
F) All of the above

Question 8

Exhibit 5-7 GDP data (billions of dollars)

In Exhibit 5-7, and using the expenditures approach, gross domestic product (GDP)  is:

Accepted Answer

A)   $6,807 billion.
B)   $7,082 billion.
C)   $7,634 billion.
D)   $7,637 billion.E) A) and B)
F) A) and D)

Question 9

Explain why GDP was never intended to be a measure of social well being.

Accepted Answer

GDP is simply a measure of total product...

Question 10

Gross private domestic investment does not include:

Accepted Answer

A)   spending for new houses.
B)   spending to build up inventories.
C)   unintentional inventory investment.
D)   spending on employee salaries.E) A) and B)
F) All of the above

Question 11

Discuss the components of GDP using the expenditure approach.

Accepted Answer

GDP equals consumption spendin...

Question 12

Why do national income accountants include indirect business taxes in the income approach to GDP computation?

Accepted Answer

A)   Indirect business taxes are the allowances for the portion of capital worn out by producing GDP.
B)   Indirect business taxes are part of firms' profits.
C)   Indirect taxes are income payments to suppliers of resources.
D)   Indirect business taxes are income for the government received through collection by firms.E) C) and D)
F) A) and B)

Question 13

Exhibit 5-8 GDP data (billions of dollars)

In Exhibit 5-8, and using the expenditures approach, gross domestic product (GDP)  equals:

Accepted Answer

A)   $1,420 billion.
B)   $2,460 billion.
C)   $2,430 billion.
D)   $1,450 billion.E) None of the above
F) A) and D)

Question 14

GDP:

Accepted Answer

A)   is the dollar value of all the final goods and services produced within the borders of a nation.
B)   includes intermediate and final goods and services.
C)   minus an allowance for depreciation of fixed capital equals GNP.
D)   is a less-than-perfect measure of social well-being because it does not include exports and imports.E) A) and B)
F) A) and C)

Question 15

Personal income is:

Accepted Answer

A)   total income received by households after taxes.
B)   the amount households have available for consumption, savings, and payment of personal taxes.
C)   national income plus corporate profits and Social Security (FIC
A)   plus transfer payments, and other income.
D)   equal to gross domestic product.E) C) and D)
F) None of the above

Question 16

The income that people earn in resource or factor markets is called:

Accepted Answer

A)   national income.
B)   personal income.
C)   disposable personal income.
D)   transfer payments.E) B) and C)
F) A) and D)

Question 17

To get personal income from national income, one must:

Accepted Answer

A)   subtract out retained earnings, Social Security taxes, and transfer payments, and add in corporate business taxes.
B)   subtract corporate profits and Social Security taxes, and add in transfer payments and other income.
C)   subtract retained earnings, corporate business taxes, and transfer payments, and add in Social Security taxes.
D)   subtract out corporate business taxes, Social Security taxes and transfer payments, and add in retained earnings.E) B) and C)
F) All of the above

Question 18

GDP includes:

Accepted Answer

A)   the negative attributes from erosion and deforested landscape.
B)   all quality improvements resulting from higher quality goods replacing inferior goods.
C)   the cleaning-up expenses associated with pollution.
D)   the value of leisure time.E) A) and C)
F) B) and D)

Question 19

If you buy a book of U.S. postage stamps to use to mail love letters to your sweetheart, the purchase is considered part of:

Accepted Answer

A)   C.
B)   I.
C)   G.
D)   X.E) A) and B)
F) B) and D)

Question 20

Exhibit 5-6 Use the table below to answer the following question(s) .

Refer to Exhibit 5-6. Measured in terms of Year 1 prices, real GDP in Year 2 was:

Accepted Answer

A)   600.
B)   750.
C)   900.
D)   1,333.E) All of the above
F) A) and C)

Exam 15: Gross Domestic Product

Which one of the following statements is true ?

Correct AnswerverifiedShow Answer

GDP:

Correct AnswerverifiedShow Answer

To get personal income from national income, one must:

Correct AnswerverifiedShow Answer

In recent years, people have benefited from greater amounts of leisure time. This trend:

Correct AnswerverifiedShow Answer

Exhibit 5-10 GDP data (billions of dollars) In Exhibit 5-10, and using the income approach, GDP equals

Correct AnswerverifiedShow Answer

The income that people earn in resource or factor markets is called:

Correct AnswerverifiedShow Answer

Personal income is:

Correct AnswerverifiedShow Answer

Durable and nondurable goods and services lumped together in the expenditure approach to measuring GDP are called:

Correct AnswerverifiedShow Answer

Exhibit 5-8 GDP data (billions of dollars) In Exhibit 5-8, and using the expenditures approach, gross domestic product (GDP) equals:

Correct AnswerverifiedShow Answer

GDP includes:

Correct AnswerverifiedShow Answer

If you buy a book of U.S. postage stamps to use to mail love letters to your sweetheart, the purchase is considered part of:

Correct AnswerverifiedShow Answer

Gross private domestic investment does not include:

Correct AnswerverifiedShow Answer

Why do national income accountants include indirect business taxes in the income approach to GDP computation?

Correct AnswerverifiedShow Answer

In a given year, U.S. nominal GDP was $2,784 billion and the GDP chain price index for that year is 60.4. Real GDP is:

Correct AnswerverifiedShow Answer

Exhibit 5-6 Use the table below to answer the following question(s) . Refer to Exhibit 5-6. Measured in terms of Year 1 prices, real GDP in Year 2 was:

Correct AnswerverifiedShow Answer

Exhibit 5-7 GDP data (billions of dollars) In Exhibit 5-7, and using the expenditures approach, gross domestic product (GDP) is:

Correct AnswerverifiedShow Answer

Increased production, but not increased inflation, will result in higher:

Correct AnswerverifiedShow Answer

Explain why GDP was never intended to be a measure of social well being.

Correct AnswerverifiedGDP is simply a measure of total product...View AnswerShow Answer

Discuss the components of GDP using the expenditure approach.

Correct AnswerverifiedGDP equals consumption spendin...View AnswerShow Answer

Which of the following is included in personal income but not in national income?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
GDP is simply a measure of total product...
View Answer

Correct Answer
verified
GDP equals consumption spendin...
View Answer

Correct Answer
verified