Econ Chapter 12 homework

What are the four categories of​ income? Part 2 A. ​Wages, Interest,​ Rent, and Profit. B. ​Consumption, Investment, Government​ Purchases, and Net Exports. C. ​Labor, Capital, Natural​ Resources, and Entrepreneurship. D. ​Wages, Salaries,​ Interest, and Dividends.

A. ​Wages, Interest,​ Rent, and Profit.

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. Part 2 A. Gross domestic income is measured precisely. B. Profits include the profits of sole proprietorships and profits of corporations. C. Wages are slightly more than three times as large as the profits received by sole proprietors and the profits received by corporations combined. D. The largest component of income received by households is wages.

A. Gross domestic income is measured precisely.

Which of the following would be included in the gross national product​ (GNP) of the United​ States? Part 2 A. Production from a U.S. firm that operates in Mexico. B. Production from an Hungarian citizen who works in​ Denver, CO. C. Production from a Canadian firm that operates in Montana. D. All of the above are included in the GNP of the U.S.

A. Production from a U.S. firm that operates in Mexico.

If prices rise over​ time, then real GDP will be Part 2 A. larger than nominal GDP in years before the base year. B. smaller than nominal GDP in years before the base year. C. larger than nominal GDP in years after the base year. D. smaller than nominal GDP in the base year.

A. larger than nominal GDP in years before the base year.

Disposable personal income is Part 2 A. personal income minus personal taxes. B. national income minus depreciation. C. personal income minus indirect business taxes. D. national income minus personal taxes.

A. personal income minus personal taxes.

Personal income is A. equal to the value of all final goods and services produced within a​ country's borders during one year. B. national income minus retained corporate earnings plus government transfer payments and interest on government bonds. C. national income minus income taxes. D. national income plus government transfer payments.

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

Based on the table and​ graph, which of the following statements regarding total production and total income is​ true? Part 2 A. Disposable personal income and personal income are equal in 2016. B. Each measure of production and income gives a different value for total production and income. C. GDP and GNP are equal in 2016. D. Personal income and national income are equal in 2016.

B. Each measure of production and income gives a different value for total production and income.

What are the four major categories of​ expenditure? Part 2 A. Final​ goods, intermediate​ goods, production, and income. B. ​Labor, capital, natural​ resources, and entrepreneurship. C. ​Consumption, investment, government​ purchases, and net exports. D. ​Wages, interest,​ rent, and profit.

C. Consumption, investment, government​ purchases, and net exports.

Why is GDP an imperfect measurement of total production in the​ economy? Part 2 A. The official measure of GDP does not include intermediate goods and services. B. The BEA does not include the value of new houses in GDP. C. GDP does not include household production or production from the underground economy. D. GDP measures total income paid to the factors of​ production, not production.

C. GDP does not include household production or production from the underground economy.

Indicate whether each of the following is a final​ good, an intermediate​ good, or neither. Coffee beans purchased by a coffee shop One share of Google stock

Coffee beans purchased by a coffee shop-> Intermediate Good One share of Google stock-> Neither new​ pick-up truck purchased by a consume-> Final Good A new home purchased by a family-> Final Good

National Income is A. nominal GDP minus GNP. B. real GDP minus personal taxes. C. nominal GDP minus personal taxes. D. GDP minus depreciation.

D. GDP minus depreciation.

The largest component of gross domestic income is Part 2 A. profits. B. rent. C. interest. D. wages.

D. wages.

The figure shows the values of the components of GDP for the year 2016. Based on the data​ shown, which of the following statements regarding the components of GDP is​ false? Part 2 A. Consumption accounts for 69 percent of​ GDP, far more than any of the other components. B. Imports are greater than exports. C. Net exports are​ negative, which reduces GDP. D. Consumer spending on services is less than the sum of spending on durable and nondurable goods.

D. Consumer Spending on services is less than the sum of spending on durable and nondurable goods. ( spreadsheet and bar graph )

National income is A. GDP minus sales taxes. B. GNP plus depreciation. C. NNP minus income taxes. D. GDP minus depreciation

D. GDP minus depreciation.

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. Part 2 A. The largest component of income received by households is wages. B. Profits include the profits of sole proprietorships and profits of corporations. C. Wages are slightly more than three times as large as the profits received by sole proprietors and the profits received by corporations combined. D. Gross domestic income is measured precisely.

D. Gross domestic income is measured precisely.

Which of the following equations sums up the components of Gross Domestic Product​ (GDP)? A. Y = C + I - G + NX B. Y = C - I - G - NX C. Y = C + I + G - NX D. Y = C + I + G + NX

D. Y = C + I + G + NX

The following table illustrates the value added approach to calculating GDP. Please complete the table.

L.L.Bean -> 20 Total Value Added -> 37

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? Part 2 A. RGDP​ > NGDP because prices are falling. B. RGDP​ = NGDP because prices are stable. C. RGDP​ < NGDP because prices are rising. Your answer is correct. D. The relationship is uncertain without more information on prices.

RGDP​ < NGDP because prices are rising.

Consider the following simple economy that produces only three​ goods: 2009​ (Base Year) 2017 Product Quantity Price Quantity Price Denim pants 80 ​$40 100 ​$50 Wine 90 11 80 10 Textbooks 15 90 20 100 Part 2

Real GDP in 2017 equals

Real GDP per capital... 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? Part 2 A. The value of leisure is not included. B. GDP does not include crime rates or income distribution. C. The costs of pollution are not included. D. All of the above.

The value of leisure is not included. GDP does not include crime rates or income distribution. The costs of pollution are not included. (All of the Above)