Exam 6: Measuring Total Output and Income

GDP may be calculated by totaling either the market values of all final goods and services or the income earned during production of those final goods and services.

Which of the following is an example of an intermediate good or service?

Use the following to answer questions Exhibit: Stages in the Production of an Office Building -(Exhibit: Stages in the Production of an Office Building) A mining firm extracts iron from the earth.A steel mill converts the iron to steel beams for use in construction.A construction company uses the steel beams to make a building.Assume that the total product of these firms represents the only components of the building and that they will have no other uses.What is the value added by Fuller Mill?

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

Use the following to answer questions Exhibit: The Circular Flow for the United States -(Exhibit: The Circular Flow for the United States) John, a resident of the U.S., buys a new set of golf clubs from a U.S.firm.This transaction is part of:

Disposable personal income is calculated as personal income:

Use the following to answer questions Exhibit: Components of GDP for an Economy 2 -(Exhibit: Components of GDP for an Economy 2) What is the value of GDP?

A nation records a trade surplus when:

Employee compensation is the largest among the components of factor income.

Which of the following is the best measure for comparing the standard of living across countries?

Net national product equals:

Daniel, an U.S.resident, purchases a Mercedes car from a dealer based in German and ships it to the U.S.This activity negatively affects the U.S.GDP.

GDP does NOT include _____.

GDP can be found by adding the final value of all goods and services produced or by totaling all factor incomes (including indirect business taxes and depreciation) for the period.

Which of the following is an example of a transfer payment?

Executive salaries and bonuses are included in gross domestic income under:

Which of the following statements is true?

Social Security payments to U.S.citizens are considered:

Which of the following is a shortcoming of GDP accounts?

Use the following to answer questions Exhibit: Components of GDP for an Economy 1 -Which of the following is the best example of a final good or service?