Exam 6: Measuring Total Output and Income

Use the following to answer questions Exhibit: Circular Flow Model -(Exhibit: Circular Flow Model) The exhibit shows a simplified circular flow model where only consumption goods are being produced.Which two flows represent your purchase of groceries from Safeway?

Use the following to answer questions Exhibit: Stages of Production of Toy Model Airplanes -(Exhibit: Stages of Production of Toy Model Airplanes) The total sales value of all transactions involved in the production of a model airplane is _____.

Government purchases are defined as:

For a given level of GDP, an increase in depreciation will

Use the following to answer questions Exhibit: Stages of Production of Toy Model Airplanes -(Exhibit: Stages of Production of Toy Model Airplanes) The value added by the sale of a model airplane to the customer is _____.

In the U.S., since the 1950s, the share of employee benefits as a percentage of total employee compensation:

Which of the following is an example of a flow variable?

Value added is defined as:

The value of goods and services purchased by households during a particular period is called:

Which of the following is an example of a stock variable?

Government expenditure is the largest single category of GDP.

Unemployment benefits provided by the U.S.government make up a major portion of the U.S.government purchases.

When would an economist focus on GNP rather than GDP?

Use the following to answer questions Exhibit: Components of GDP for an Economy 1 -Which of the following is an expenditure component of GDP?

Use the following to answer questions Exhibit: Components of GDP for an Economy 1 -(Exhibit: Components of GDP for an Economy 1) What is the total value of government purchases of goods and services?

To estimate the value of U.S.GDP from U.S.GNP, we must:

A measure of the degree to which capital wears out or becomes obsolete during a period is:

The costs of wages are included in the value added approach to calculating income, but profits are not included.

A Japanese worker, working in the U.S., deposits some money in his bank account, and his son collects the money from a branch of the same bank in Japan.This activity reduces the U.S.GDP.

GDP increases if you purchase General Motors stock.