ECON 101-02: Chapter 19

Net National Product (NNP) equals gross national product (GNP) minus Select one: A.depreciation. B.changes in inventories. C.imports. D.inventories.

A.depreciation.

A final good is one that Select one: A.is purchased by its final user. B.is a natural resource used to produce a good. C.is purchased as an input in the production process. D.is used in the production of another good.

A.is purchased by its final user.

U.S. gross national product is defined as Select one: A.the value of final goods and services produced by residents of the United States even if the production takes place outside of the United States. B.the value of final goods and services produced within the United States, by United States residents. C.the value of final goods and services produced within the United States. D.the value of final goods and services produced outside of the United States.

A.the value of final goods and services produced by residents of the United States even if the production takes place outside of the United States.

Nominal GDP is GDP in a given year Select one: A.valued in the prices of the base year. B.valued in the prices of that year. C.adjusted for anticipated inflation. D.adjusted for inflation.

B.valued in the prices of that year.

Real GDP is GDP in a given year Select one: A.valued in the prices of that year. B.valued in the prices of the base year. C.adjusted only for anticipated inflation. D.adjusted only for unanticipated inflation.

B.valued in the prices of the base year.

Which of the following goods is directly counted in GDP? Select one: A.the plastic bags that Subway purchases to wrap its sandwiches B.the bread that Subway purchases for its sandwiches C.a 12-inch Subway sandwich purchased by a student D.the lettuce that Subway purchases for its sandwiches

C.a 12-inch Subway sandwich purchased by a student

An example of a transfer payment is Select one: A.a purchase of a new bridge in Alaska. B.a welfare payment. C.a teacher's paycheck. D.a paycheck for a member of the National Guard

C.a teacher's paycheck.

What is the largest component of spending in the United States? Select one: A.investment spending B.government purchases C.consumption spending D.net investment spending

C.consumption spending

Gross domestic product is calculated by summing up Select one: A.the total quantity of goods and services in the economy. B.the total market value of goods and services in the economy. C.the total market value of final goods and services produced in the economy during a period of time. D.the total quantity of goods and services produced in the economy during a period of time

C.the total market value of final goods and services produced in the economy during a period of time.

Which of the following accurately describes an effect of Hurricane Harvey on GDP? Select one: A.GDP would increase well-being. B.GDP would decrease reflecting the costs of cleanup. C.GDP would increase reflecting the decrease in production that occurred during the storm and the productive capacity lost in the storm. D.GDP would increase reflecting the costs of cleanup.

D.GDP would increase reflecting the costs of cleanup.

The output of U.S. citizens who work in Canada would be included in the Select one: A.gross national product of Canada and the gross national product of the United States. B.gross domestic product of the United States. C.gross national product of Canada. D.gross domestic product of Canada.

D.gross domestic product of Canada.

The purchase by a household in China of a DVD produced in the United States is included in U.S. Select one: A.investment expenditures. B.government purchases. C.consumption expenditures. D.net exports.

D.net exports.

Gross national product (GNP) of the United States is the market value of all final goods and services Select one: A.consumed by citizens of the United States anywhere in the world. B.consumed within the United States. C.produced within the United States. D.produced by citizens of the United States anywhere in the world.

D.produced by citizens of the United States anywhere in the world.

Total income in an economy is equal to Select one: A.income minus taxes. B.GDP minus net exports. C.firm revenues. D.the sum of wages, interest, rent, and profit.

D.the sum of wages, interest, rent, and profit.