ECO202 Chapter 8 Questions
The largest component of gross domestic income is
wages
What are the four major categories of expenditure?
Consumption, investment, government purchases, and net exports.
What are the four categories of income?
Wages, Interest, Rent, and Profit.
Why is GDP an imperfect measurement of total production in the economy?
GDP does not include household production or production from the underground economy.
National income is
GDP minus depreciation.
Which of the following would be included in the gross national product (GNP) of the United States?
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
RGDP < NGDP because prices are rising
Real GDP per capita LOADING... 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?
The value of leisure is not included. GDP does not include crime rates or income distribution. The costs of pollution are not included.
Which of the following equations sums up the components of Gross Domestic Product (GDP)?
Y=C+I+G+NX
Disposable personal income is
personal income minus personal taxes.
