econ hw #8

Which of the following identities defines GDP using the product approach?

GDP = Business production + Household and institution production + Government production

Which of the following identities defines GDP using the income approach?

GDP = National income - Net income payments from the foreign sector + Depreciation

The three methods for calculating GDP are ...

the spending approach, the income approach, and the product approach.

According to the text, what is the difference between a closed economy and an open economy?

A closed economy has no foreign sector while an open economy includes a foreign sector.

Using the spending approach, which one of the following economic agents is responsible for the largest component of the gross domestic product of the United States?

Private households and institutions

Which one of the following is not included as part of the manufactured capital stock of the United States?

Stocks traded on the stock market

How is the value-added approach to measuring GDP calculated?

The difference between the selling price and the cost of intermediate inputs

What are the sectors used in the Bureau of Economic Analysis' system of national accounts?

The household and institutions, business, government, and foreign sectors

Which one of the following is the definition of Gross Domestic Product?

The market value of newly produced final goods and services produced within a country's borders over a period of time.

Consumer durable goods are those goods that are expected to last longer than ...

Three years