Macro Econ Chapter 5

a final good is: check all that apply a) counted twice while calculating GDP b) directly counted as part of GDP c) a good used only in the production of other products d) a good directly consumed by individuals or businesses

- directly counted as part of GDP - a good directly consumed by individuals or businesses

which of the following is subtracted from national income to arrive at personal income? check all that apply a) indirect business taxes b) personal taxes c) corporate profits d) depreciation e) capital income f) net foreign factor income g) transfer payments

- indirect business taxes - corporate profits

goods and services that are purchased for resale of for further processing or manufacturing are called ______ goods

intermediate

goods and services that are purchased for resale or for further processing or manufacturing are ______ goods

intermediate

which of the following are components of the expenditure approach to measuring GDP: a) personal and business savings b) consumption c) government spending d) gross investment

- consumption - government spending - gross investment

a final good is: check all that apply a) a good used only in the production of other products b) directly counted as part of GDP c) counted twice while calculating GDP d) a good directly consumed by individuals or businesses

- directly counted as part of GDP - a good directly consumed by individuals or businesses

for international comparisons of total output which of the following figures are most commonly used check all that apply a) total investment b) gross domestic product c) GDP per capita d) net immigration

- gross domestic product - GDP per capita

when describing the flow of income, GDP returns to the market in the form of : check all that apply a) transfer payments b) investment c) sales revenue d) consumption e) government spending

- investment - consumption - government spending

which of the following are included in the calculation of the GDP of an economy? check all that apply a) purchase of a new car produced in the economy b) purchase of a lawnmower produced in the economy c) volunteer services d) government spending on highways e) the services of homemakers f) illegal drug sales

- purchase of new car produced in the economy - purchase of lawnmower produced in the economy - government spending on highways

which of the following is added to national income to arrive at personal income? check all that apply a) personal taxes b) transfer payments c) net foreign factor income d) corporate profits e) depreciation f) indirect business taxes g) capital income

- transfer payments - capital income

suppose foreign-owned resources within the u.s. produced $250 billion of output while American-owned resources employed abroad produces $310 billion of output. In this case, net foreign factor income is $_______ billion

60 (310 - 250)

the value of capital used up in the production of goods and services is called ______

depreciation

the distinction of imports from domestic-made goods is ______ to establish a) unnecessary b) impossible c) easy d) difficult

difficult

gross ______ product refers to output produced within a country's borders

domestic

match the appropriate components to the income or the expenditure method of calculating GDP: - consumer spending - government spending - rent - net exports - wages - interest - investment spending - corporate profits

expenditure method: - government spending - consumer spending - net exports - investment spending income method - wages - rent - interest - corporate profits

goods and services sold to international buyers are: a) imports b) exports c) net exports

exports

GDP can also be measured using the _____ approach, which adds the items that make up national earnings a) total b) expenditure c) national d) income

income

if GDP included unreported income, GDP would: a) increase b) decrease c) remain unchanged

increase

an increase in the average level of prices of goods and services is

inflation

the chain-weighted price indexes employed by the U.S Department of Commerce to compute real GDP use a _____ average of price levels in consecutive years as an inflation adjustment a) geometric b) simple c) moving

moving

gross ______ product refers to output produced by American-owned factors of production regardless of where they're located

national

income earned by current factors of production is called ______ income

national

the measurement of aggregate economic activity in terms of national income and its components is called : a) gross domestic product b) productivity c) value added d) national income accounting

national income accounting

gross domestic product less depreciation equals: a) net domestic product b) national income c) personal income d) gross investment

net domestic product

net investment is: a) what is left over from the total new private investment after depreciation b) the total amount of new private investment purchases c) the total amount of private investment purchases, whether new or previously existing d) the wear and tear on private investment

what is left over from total new private investment after depreciation

investment currently claims about _____ of U.S output a) one-eighth b) one-sixth c) one-third d) one-half

one-sixth

income received by households before payment of personal taxes is called ______ income

personal

a nation's gross domestic product (GDP): a) reflects the total market value of all goods and services, final and intermediate produced by a country's resources in a year b) reflects the total market value of all final goods and services produced within an economy in a given year c) reflects the aggregate output of final and intermediate goods produced within an economy in a given year d) reflects the aggregate output of intermediate goods produced within an economy in a given year

reflects the total market value of all final goods and services produced within an economy in a given year

gross investment is: a) the total amount of private investment purchases, whether new or previously existing b) what is left over from total new private investment after depreciation c) the wear and tear on private investment d) the total amount of investment purchases in a given time periods

the total amount of investment purchases in a given time period