Macro ch. 8 test
In the National Income and Product Accounts (NIPA), sales taxes are referred to a (41)
*indirect business taxes. In order to calculate the total income actually received by a country's residents, the BEA has to subtract the value of sales taxes from net national product. In the NIPA tables, sales taxes are referred to as indirect business taxes.
what do we subtract from GNP to obtain NNP?(40)
Depreciation If we subtract the depreciation value from GNP, we are left with NNP. In the NIPA tables, depreciation is referred to as the consumption of fixed capital. *or the capital consumption allowance. ( Net National Product)
Growth in the economy is almost always measured as (35)
Growth in real GDP
in the circular-flow diagram, who supplies factors of production in exchange for income? (12)
Households
Which of the following is a macroeconomic study? (1)
How fast prices in general are increasing.
Using the year 2013 as the base year, and assuming that prices during 2000 were lower on average then prices in 201, we can conclude that (36)
Nominal GDP was lower then real GDP in 2000 (as prices rise, nominal GDP rises above real GDP! In the 2000, prices were on avg. lower then in 2013, so nominal GDP was lower then real GDP. )
Suppose that the base year is 2000, and we want to calculate real GDP for 2013. You would use this procedure (33)
Quantities in 2013 * by the price in 2000
the total national income actually received by a country's residents is (42)
SMALLER then the value of GDP
The difference between the price the firm sells a good for and the price it paid other firms for intermediate goods is called (24)
Value added
which of the following goods and services would be excluded from personal consumption expenditures in the Bureau of Economic Analysis (BEA) statistics? (16)
a new house
to calculate personal income from national income, which of the following must be done by the BEA? (43)
add the government transfer payments
if we add up the value of every final good and service produced in the economy, we must get a total that is exactly equal to the value of .. (10)
all of the income in the economy.
Which of the following is true about the consumption component of US GDP in 2010? (23)
consumer spending on services was > the sum of spending on durable and nondurable goods.
the best measure of the income households actually have available to spend is
disposable personal income
which of the following is counted in this years GDP (8)
only this years production of goods and services
disposable personal income is equal to (44)
personal income - personal taxes + gov. transfer payments
If the GDP deflator in 2013 has a value of 110, then (38)
prices have increased 10 % between the base yr. and 2013
Gross domestic product is best defined as (2)
the market value of all final goods and services produced in a country.
Total income in the economy equals the sum of
wages, interest, rent, and profit
an important conclusion to draw from the circular-flow diagram is.. (15)
we can measure GDP by calculating the total value of expenditures on final goods and services or we can measure GDP by calculating the value of total income.
Which of the following is NOT true of GDP? (6)
GDP includes both intermediate and final goods.
what happens if we measure GDP by adding up the value of every good and service produced in the economy (9)
GDP is overestimated because of double counting
When a significant fraction of domestic production takes place in foreign-owned facilities, a country's difference between GDP and GNP is as follows (39)
GDP will be much larger then GNP. GNP- gross national product: like households disposable income..
Which of the following is NOT a component of GDP from the expenditure point of view? (21)
Gov. taxes (because gov. taxes are pure transfer payments. they don't result in the production of new goods and services.)