economics chapter 7 Measuring the Aggregate Economy Quiz

GDP is the:

A. market value of an economy's production of final goods and services in a one year period.

Payments to the owners of firms are included in the national income and product accounts as:

A. profits.

Which of the following would increase this year's GDP?

B. A commission charged by your broker when you sold 100 shares of Borden stock.

Which of the following is a part of GDP?

B. The value of a haircut.

Given the above information, national income equals:

C. $3900.

Which of the following is not included in GDP but is included in GNP?

C. Economic activity of U.S. citizens working abroad.

In what category is the purchase of a computer by a business in the National Income Accounts?

C. It is a form of investment spending.

Which of the following is an example of an intermediate product?

C. The lumber produced by Boise Cascade and sold to a builder of old houses.

The largest component of national income is:

C. employee compensation.

Using the expenditure approach, gross domestic product equals:

D. the sum of consumption, investment, government purchases and net exports.