Exam 7: Measuring Domestic Output and National Income

Personal Taxes \ 40 Social Security Contributions 15 Taxes on Production and Imports 20 Corporate Income Taxes 40 Transfer Payments 22 U.S. Exports 24 Undistributed Corporate Profits 35 Government Purchases 90 Gross Private Domestic Investment 75 U.S. Imports 22 Personal Consumption Expenditures 250 Consumption of Fixed Capital (depreciation) 25 Net Foreign Factor Income 10 Statistical Discrepancy 0 Refer to the accompanying data (all ?gures in billions of dollars). GDP is

In a typical year, which of the following measures of aggregate output and income is likely to be the smallest?

Which of the following is not economic investment?

Year Units of Output Price Per Unit 1 3 \ 3 2 4 4 3 6 5 4 7 7 5 8 8 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. Real GDP for year 5 is

Gross Private Domestic Investment \ 46 Exports of the U.S. 9 Disposable Income 190 Personal Saving 10 Government Purchases 84 Net Foreign Factor Income 10 Consumption of Fixed Capital 52 Dividends 13 Imports of the U.S. 12 Taxes on Production and Imports 22 Personal Taxes 38 Social Security Contributions 23 Statistical Discrepancy 0 Refer to the accompanying data. All ?gures are in billions of dollars. The national income is

NDP can be determined by adding taxes on production and imports to GDP.

Government purchases include government spending on

If the per-unit prices of the three goods were each $1 in a base year used to construct a GDP price index, then the GDP price index in the current year is

In the expenditures approach of national income accounting, C, Ig, and G include expenditures for

The expenditures or output approach to GDP measures it by summing up

The two ways of looking at GDP are the

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

Gross Investment \ 18 National Income 100 Net Exports 2 Personal Income 85 Personal Consumption Expenditures 70 Saving 5 Government Purchases 20 Net Domestic Product 105 Statistical Discrepancy 0 Refer to the accompanying data (all ?gures in billions of dollars). The gross domestic product for this economy is

Assume that a manufacturer of stereo speakers purchases $40 worth of components for each speaker. The completed speaker sells for $70. The value added by the manufacturer for each Speaker is

Suppose the total monetary value of all final goods and services produced in a particular country in a year is $500 billion and the total monetary value of final goods and services sold is $450 billion. We can conclude that

The largest component of national income is

Which of the following is an intermediate good?

By summing the dollar value of all monetary transactions in the economy, we would

Year Units of Output Price Per Unit 1 20 \ 4 2 25 4 3 30 6 Assume an economy that is producing only one product. Output and price data for a three-year period are shown in the table. If year 2 is chosen for the base year, in year 3 nominal GDP and real GDP, respectively, are

The following are national income account data for a hypothetical economy in billions of dollars: gross private domestic investment ($320), imports ($35), exports ($22), personal consumption Expenditures ($2,460), and government purchases ($470). What is GDP in this economy?