Chapter 8 Homework

Ace your homework & exams now with Quizwiz!

The largest component of gross domestic income is

wages.

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?

All of the above

If a country passes a law limiting the number of hours of work per week, GDP would ___ and leisure would ___.

decrease; increase

What are the four major categories of expenditure?

Consumption, investment, government purchases, and net exports.

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.

What are the four categories of income?

Wages, Interest, Rent, and Profit.

Which of the following equations sums up the components of GDP?

Y = C + I + G + NX

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

The Phillipines and Vietnam have roughly the same size population. Suppose the GDP of the Philippines is $1,000 billion and the GDP of Vietnam is $10,000 billion. You should conclude

it is not possible to make a good comparison of the economic well being of a typical individual in the 2 countries without additional information.

Personal income is

national income minus retained corporate earnings plus government transfer payments and interest on government bonds.

Disposable personal income is

personal income minus personal taxes.

Which of the following is a true statement about the impact of World War II on the U.S. economy?

Increased production of tanks, ships, planes, and munitions accounted for most of the increase in GDP.

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.


Related study sets

HIST 102 Multiple Choice Study Guide (100-150)

View Set

eSponsorship and Application Training (eSAT)

View Set

Bible Final "Which of the following best describes this person"

View Set

CH 64 Systemic Lupus Erythematosus

View Set

Astronomy 112 Homework 4 - Chapter 6

View Set

Pre-Algebra Combining Like Terms

View Set