FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 7: Measuring Domestic Output and National Income

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 51

Multiple Choice

Review LaterAdd Note

Review Later

Corporate profits are found by

A) summing corporate income taxes, dividends, and undistributed corporate profits.
B) adding corporate income taxes and dividends and subtracting undistributed corporate profits.
C) subtracting corporate income taxes from the sum of dividends and undistributed corporate profits.
D) summing dividends, undistributed corporate profits, and proprietors' income.

Correct Answer

verified

Show Answer

Question 52

Multiple Choice

Review LaterAdd Note

Review Later

$\begin{array} { | l | c | } \hline \text { Gross Private Domestic Investment } & \$ 46 \\\hline \text { Exports of the U.S. } & 9 \\\hline \text { Disposable Income } & 190 \\\hline \text { Personal Saving } & 10 \\\hline \text { Government Purchases } & 84 \\\hline \text { Net Foreign Factor Income } & 10 \\\hline \text { Consumption of Fixed Capital } & 52 \\\hline \text { Dividends } & 13 \\\hline \text { Imports of the U.S. } & 12 \\\hline \text { Taxes on Production and Imports } & 22 \\\hline \text { Personal Taxes } & 38 \\\hline \text { Social Security Contributions } & 23 \\\hline \text { Statistical Discrepancy } & 0 \\\hline\end{array}$ Refer to the accompanying data. All ?gures are in billions of dollars. The net domestic product is

A) $233.
B) $255.
C) $230.
D) $348.

Correct Answer

verified

Show Answer

Question 53

Multiple Choice

Review LaterAdd Note

If nominal GDP in some year is $280 and real GDP is $160, then the GDP price index for that year is

Final goods and services refers to

Arthur sells $100 worth of cotton to Bob. Bob turns the cotton into cloth, which he sells to Camille for $300. Camille uses the cloth to make prom dresses that she sells to Donita for $700. Donita sells The dresses for $1,200 to kids attending the prom. The total contribution to GDP of this series of Transactions is

$\begin{array} { | c | c | c | } \hline \text { Year } & \text { Units of Output } & \text { Price Per Unit } \\\hline 1 & 3 & \$ 3 \\\hline 2 & 4 & 4 \\\hline 3 & 6 & 5 \\\hline 4 & 7 & 7 \\\hline 5 & 8 & 8 \\\hline\end{array}$ Assume an economy that makes only one product and that year 3 is the base year. Output and price data for a ?ve-year period are shown in the table. In determining real GDP, the nominal GDP for

$\begin{array} { | l | c | } \hline \text { Disposable Income } & \$ 200 \\\hline \text { Net Private Domestic Investment } & 40 \\\hline \text { US Imports } & 15 \\\hline \text { National Income } & 300 \\\hline \text { Personal Taxes } & 31 \\\hline \text { Net Exports } & 9 \\\hline \text { Gross Private Domestic Investment } & 55 \\\hline \text { Net Foreign Factor Income } & 10 \\\hline \text { Statistical Discrepancy } & 0 \\\hline\end{array}$ Refer to the accompanying national income data (in billions of dollars) . In these data, U.S. exports are

In an economy that is experiencing a shrinking production capacity,

Adding the market value of all final and intermediate goods and services in an economy in a given year would result in

Computation of GDP by the expenditures method would include the purchase of

If nominal GDP rises,

Consumption of fixed capital (depreciation) can be determined by

If real GDP falls from one period to another, we can conclude that

Real GDP refers to

GDP in an economy is $11,050 billion. Consumer expenditures are $7,735 billion, government purchases are $1,989 billion, and gross investment is $1,410 billion. Net exports must be

The smallest component of aggregate spending in the United States is

Refer to the diagram. The base year used in determining the price indices for this economy

Gross domestic product (GDP) measures and reports output

The largest expenditure component of GDP is

When an economy's production capacity is expanding,