econ homework - chapter 8
117, 120
********** solve the following
Final good
Indicate whether each of the following is a final good, an intermediate good, or neither. A new home purchased by a family
GDP, depreciation
National income is: _____ minus ___________.
20, Total Value added = 37
The following table illustrates the value added approach to calculating GDP. Please complete the table.
$6680
Consider the following simple economy that produces only three goods Real GDP in 2017 equals $____
personal, personal
Disposable personal income is: ________ income minus ________ taxes.
larger, before
If prices rise over time, then real GDP will be.. _______ than nominal GDP in years ______ the base year.
A
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 rising. B. RGDP > NGDP because prices are falling. C. RGDP = NGDP because prices are stable. D. The relationship is uncertain without more information on prices.
wages
The largest component of gross domestic income is
D
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. The official measure of GDP does not include intermediate goods and services. C. GDP measures total income paid to the factors of production, not production. D. GDP does not include household production or production from the underground economy.
A
Based on the table and graph, which of the following statements regarding total production and total income is true? A. Each measure of production and income gives a different value (even if only slightly) for total production and income. B. Disposable personal income and national income are equal in 2020. C. GDP and GNP are equal in 2020. D. Disposable personal income and personal income are equal in 2020.
Final good
Indicate whether each of the following is a final good, an intermediate good, or neither. A new pick-up truck purchased by a consumer
Intermediate good
Indicate whether each of the following is a final good, an intermediate good, or neither. Coffee beans purchased by a coffee shop
Neither
Indicate whether each of the following is a final good, an intermediate good, or neither. One share of Google stock
D
Personal income is A. national income plus government transfer payments. B. national income minus income taxes. C. equal to the value of all final goods and services produced within a country's borders during one year. D. national income minus retained corporate earnings plus government transfer payments and interest on government bonds.
D
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 value of leisure is not included. B. The costs of pollution are not included. C. GDP does not include crime rates or income distribution. D. All of the above.
B
The figure shows the values of the components of GDP for the year 2020. Based on the data shown, which of the following statements regarding the components of GDP is false? A. Net exports are negative, which reduces GDP. B. Consumer spending on services is less than the sum of spending on durable and nondurable goods. Your answer is correct. C. Consumption accounts for 67.6 percent of GDP, far more than any of the other components. D. Imports are greater than exports.
D
The table and figure show GDP measured in terms of the total income received by households. Use the table and figure to help determine which of the following statements about the division of income is false. A. The largest component of income received by households is wages. B. Wages are more than three times as large as the profits received by sole proprietors and the profits received by corporations combined. C. Profits include the profits of sole proprietorships and profits of corporations. D. Gross domestic income is measured precisely.
C. Wages, Interest, Rent, and Profit.
What are the four categories of income? A. Consumption, Investment, Government Purchases, and Net Exports. B. Wages, Salaries, Interest, and Dividends. C. Wages, Interest, Rent, and Profit. D. Labor, Capital, Natural Resources, and Entrepreneurship.
A. Consumption, investment, government purchases, and net exports.
What are the four major categories of expenditure? A. Consumption, investment, government purchases, and net exports. B. Labor, capital, natural resources, and entrepreneurship. C. Wages, interest, rent, and profit. D. Final goods, intermediate goods, production, and income.
Y = C + I + G + NX
Which of the following equations sums up the components of Gross Domestic Product (GDP)?
C
Which of the following would be included in the gross national product (GNP) of the United States? A. Production from an Hungarian citizen who works in Denver, CO. B. Production from a Canadian firm that operates in Montana. 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.
