Chapter 7 A
federal, state, and local government expenditures.
Government purchases include
monetary value of all final goods and services produced within the borders of a nation in a particular year.
GDP is the
in dollar amounts
Gross domestic product (GDP) measures and reports output
interest
The money paid by private businesses to the suppliers of loans used to purchase capital is called
exports less imports
net exports are
consumer durable goods and therefore personal consumption expenditures.
Buying new furniture for your home would increase
gross rental income minus depreciation of the rental property.
The income amount used for "Rents" in the national accounts is net rent, so it is
only counting final goods.
National income accountants can avoid multiple counting by
True
National income accountants consider services to be an intangible act or use for which a consumer, firm, or government is willing to pay.
true
Purchasing a two-year-old, secondhand laptop contributes nothing to this year's GDP.
$110
Refer to the accompanying data (all figures in billions of dollars). The gross domestic product for this economy is
$500
A business buys $1,000 worth of inputs from other firms in order to produce a product. The business makes 500 units of the product and each of them sells for $3. The value added by the business to these products is
is the dollar value of all final output produced within the borders of the nation during a specific period of time.
A nation's gross domestic product (GDP)
private transfer payment.
A transfers of funds from one private individual to another private individual without any production taking place is a(n
obtain a sum substantially larger than GDP.
By summing the dollar value of all monetary transactions in the economy, we would
are included in Ig.
Expenditures on the research and development (R&D) of new productive technologies
goods and services purchased by ultimate users, rather than for resale or further processing.
Final goods and services refers to
spending on new writing that increases the flow of entertainment and education.
Human-made resources that are referred to as "recipes" includes
the GDP would be overstated
If intermediate goods and services were included in GDP,
All of the answers are correct.
Interest consists of the money households receive on
We need more information to determine whether GDP has changed.
Suppose Smith pays $100 to Jones.
GDP that year is $500 billion.
Suppose the total monetary value of all final goods and services produced in a particular country in a year is $500 billion and the total monetary value of final goods and services sold is $450 billion. We can conclude that
NAtional Income and Product Accounts
The Bureau of Economic Analysis compiles the NIPA accounts. The letters NIPA represent
Bureau of Economic Analysis.
The agency responsible for compiling the National Income and Product Accounts for the U.S. economy is the
rents include the interest paid to the suppliers of loans used to purchase capital.
The income approach to national income accounting lists "Rents" as one of the components. All of the following statements about "rents" are correct except
adds the monetary values of each final good or service produced.
To manage the problem of adding dissimilar items when calculating GDP, the BEA
such payments generate no production.
Transfer payments are not included in government purchases because
a public transfer payment
Veterans' payments are excluded from GDP calculations because they are
the value of a checkup with your doctor
Which of the following will NOT be included in U.S. GDP?