Eco2013- chap8-9-19-11
The largest component of gross domestic income is A. interest. B. rent. C. profits. D. wages.
wages
What are the four major categories of expenditure? A. Consumption, investment, government purchases, and net exports. B. Wages, interest, rent, and profit. C. Labor, capital, natural resources, and entrepreneurship. D. Final goods, intermediate goods, production, and income.
Consumption, investment, government purchases, and net exports.
Indicate whether each of the following is a final good, an intermediate good, or neither. A. Coffee beans purchased by a coffee shop B. One share of Google stock C. A new pick-up truck purchased by a consumer D. A new home purchased by a family
A. - Intermediate good B. - Neither C. - Final good D. - Final good
Real GDP per capita is often used as a measure of general well-being. While increases in real GDP often do lead to increases in the well-being of the population, why is real GDP not a perfect measure of well-being? A. The costs of pollution are not included. B. GDP does not include crime rates or income distribution. C. The value of leisure is not included. D. All of the above.
All of the above.
Why is GDP an imperfect measurement of total production in the economy? A. The BEA does not include the value of new houses in GDP. B. GDP does not include household production or production from the underground economy. C. The official measure of GDP does not include intermediate goods and services. D. GDP measures total income paid to the factors of production, not production.
GDP does not include household production or production from the underground economy.
National income is A. NNP minus income taxes. B. GNP plus depreciation. C. GDP minus depreciation. D. GDP minus sales taxes.
GDP minus depreciation
Which of the following would be included in the gross national product (GNP) of the United States? A. Production from a Canadian firm that operates in Montana. B. Production from an Hungarian citizen who works in Denver, CO. C. Production from a U.S. firm that operates in Mexico. D. All of the above are included in the GNP of the U.S.
Production from a U.S. firm that operates in Mexico.
Suppose the base year is 2001. Looking at GDP data from the United States from 2001 to the present, what would be true of the relationship between nominal GDP and real GDP? A. RGDP = NGDP because prices are stable. B. RGDP < NGDP because prices are rising. C. RGDP > NGDP because prices are falling. D. The relationship is uncertain without more information on prices.
RGDP < NGDP because prices are rising
What are the four categories of income? A. Consumption, Investment, Government Purchases, and Net Exports B. Labor, Capital, Natural Resources, and Entrepreneurship. C. Wages, Interest, Rent, and Profit. D. Wages, Salaries, Interest, and Dividends
Wages, Interest, Rent, and Profit.
Which of the following equations sums up the components of Gross Domestic Product (GDP)? Y= C+I-G+NX Y= C+I+G+NX Y= C-I-G-NX Y= C+I+G-NX
Y=C+I+G+NX
Personal income is A. national income minus retained corporate earnings plus government transfer payments and interest on government bonds. B. equal to the value of all final goods and services produced within a country's borders during one year. C. national income plus government transfer payments. D. national income minus income taxes.
national income minus retained corporate earnings plus government transfer payments and interest on government bonds.
Disposable personal income is A. personal income minus indirect business taxes. B. national income minus depreciation. C. personal income minus personal taxes. D. national income minus personal taxes.
personal income minus personal taxes.
