Ch 7

Corporate profits is the largest category of national income. Select one: True False

False

Disposable income equals national income minus personal taxes. Select one: True False

True

Which of the following illustrates double counting? Select one: a. The total market value of the steel used to produce a car and the total market value of the car itself are summed. b. The total market value of tennis rackets and the total market value of the tennis balls are summed. c. The total market value of picture frames and the total market value of camera film are summed. d. The total market value of eyeglasses and the total market value of carpet are summed. e. b and c

a. The total market value of the steel used to produce a car and the total market value of the car itself are summed.

In the United States, which is the largest dollar figure? Select one: a. disposable personal income b. gross domestic product c. per-capita GDP d. personal income

b. gross domestic product

"Economic growth" has occurred if Select one: a. inflation rate between this year and last year is zero or less. b. GDP this year exceeds the Real GDP this year. c. unemployment rate this year is above the natural rate of unemployment. d. real GDP this year is greater than Real GDP last year.

d. real GDP this year is greater than Real GDP last year.