\[\begin{array} { | l | r | } \hline \text { Consumption of Fixed Capital } & \$ 25 \\ \hline \text { Government Purchases } & 315 \\ \hline \text { US imports } & 260 \\ \hline \text { Personal Taxes } & 45 \\ \hline \text { Transfer Payments } & 247 \\ \hline \text { US Exports } & 249 \\ \hline \text { Personal Consumption Expenditures } & 475 \\ \hline \text { Net Foreign Factor Income } & 5 \\ \hline \text { Gross Private Domestic Investment } & 300 \\ \hline \text { Taxes on Production and Imports } & 245 \\ \hline \text { Undistributed Corporate Profits } & 60 \\ \hline \text { Social Security Contributions } & 240 \\ \hline \text { Corporate Income Taxes } & 65 \\ \hline \text { Statistical Discrepancy } & 40 \\ \hline \end{array}\] Refer to the accompanying national income data (in billions of dollars). National income is

A) $804 billion. B) $940 billion. C) $975 billion. D) $1,019 billion. A) $804 billion. B) $940 billion. C) $975 billion. D) $1,019 billion.

\[\begin{array} { | l | r | } \hline \text { Consumption of Fixed Capital } & \$ 25 \\ \hline \text { Government Purchases } & 315 \\ \hline \text { US imports } & 260 \\ \hline \text { Personal Taxes } & 45 \\ \hline \text { Transfer Payments } & 247 \\ \hline \text { US Exports } & 249 \\ \hline \text { Personal Consumption Expenditures } & 475 \\ \hline \text { Net Foreign Factor Income } & 5 \\ \hline \text { Gross Private Domestic Investment } & 300 \\ \hline \text { Taxes on Production and Imports } & 245 \\ \hline \text { Undistributed Corporate Profits } & 60 \\ \hline \text { Social Security Contributions } & 240 \\ \hline \text { Corporate Income Taxes } & 65 \\ \hline \text { Statistical Discrepancy } & 40 \\ \hline \end{array}\] Refer to the accompanying national income data (in billions of dollars). Net domestic product equals

A) $1,039 billion. B) $1,044 billion. C) $1,054 billion. D) $1,076 billion. A) $1,039 billion. B) $1,044 billion. C) $1,054 billion. D) $1,076 billion.

Exam 7: Measuring Domestic Output and National Income

Setup Corporation buys $100,000 of sand, rock, and cement to produce ready-mix concrete. It sells 10,000 cubic yards of concrete at $30 a cubic yard. The value added by Setup Corporation is

(Multiple Choice)

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Question 21

The growth of GDP may understate changes in the economy's economic well-being over time if the

(Multiple Choice)

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Question 22

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 as the base year, in years 1 and 3 the price index Values are

(Multiple Choice)

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Question 23

Consumption of Fixed Capital \ 25 Government Purchases 315 US imports 260 Personal Taxes 45 Transfer Payments 247 US Exports 249 Personal Consumption Expenditures 475 Net Foreign Factor Income 5 Gross Private Domestic Investment 300 Taxes on Production and Imports 245 Undistributed Corporate Profits 60 Social Security Contributions 240 Corporate Income Taxes 65 Statistical Discrepancy 40 Refer to the accompanying national income data (in billions of dollars). National income is

(Multiple Choice)

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Question 24

The "statistical discrepancy" that the NIPA includes in the data is to account for the following, except

(Multiple Choice)

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Question 25

Which of the following is included in the expenditures approach to GDP?

(Multiple Choice)

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Question 26

Consumption of Fixed Capital \ 25 Government Purchases 315 US imports 260 Personal Taxes 45 Transfer Payments 247 US Exports 249 Personal Consumption Expenditures 475 Net Foreign Factor Income 5 Gross Private Domestic Investment 300 Taxes on Production and Imports 245 Undistributed Corporate Profits 60 Social Security Contributions 240 Corporate Income Taxes 65 Statistical Discrepancy 40 Refer to the accompanying national income data (in billions of dollars). Net domestic product equals

(Multiple Choice)

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Question 27

Nominal GDP is adjusted for price changes using

(Multiple Choice)

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Question 28

The simplest way to calculate GDP is to sum the total sales of all business ﬁrms.

(True/False)

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Question 29

If real GDP rises and the GDP price index has increased,

(Multiple Choice)

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Question 30

If inﬂows to the capital stock are greater than outﬂows, then

(Multiple Choice)

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Question 31

National income is the sum of employee compensation, proﬁts, and the following items, except

(Multiple Choice)

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Question 32

Which of the following transactions would be included in GDP?

(Multiple Choice)

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Question 33

The value of corporate stocks and bonds traded in a given year is

(Multiple Choice)

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Question 34

Real GDP accounts for changes in product quality; nominal GDP does not.

(True/False)

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Question 35

All expenditures on new construction are included as investment in calculating GDP.

(True/False)

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Question 36

The following are national income account data for a hypothetical economy in billions of dollars: government purchases ($1,050), personal consumption expenditures ($4,800), imports ($370), Exports ($240), and gross private domestic investment ($1,130). What is GDP for this economy?

(Multiple Choice)

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Question 37

The agency responsible for compiling the National Income and Product Accounts for the U.S. economy is the

(Multiple Choice)

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Question 38

In year 1, Trailblazer Bicycle Company produced a mountain bike that was delivered to a retail outlet in November of that same year. The bicycle was sold to E.Z. Ryder in March of the next year, year 2. This bicycle is counted as

(Multiple Choice)

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Question 39

The following are examples of ﬁnal goods in national income accounting, except

(Multiple Choice)

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Question 40

Setup Corporation buys $100,000 of sand, rock, and cement to produce ready-mix concrete. It sells 10,000 cubic yards of concrete at $30 a cubic yard. The value added by Setup Corporation is

The growth of GDP may understate changes in the economy's economic well-being over time if the

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 as the base year, in years 1 and 3 the price index Values are

The "statistical discrepancy" that the NIPA includes in the data is to account for the following, except

Which of the following is included in the expenditures approach to GDP?

Nominal GDP is adjusted for price changes using

The simplest way to calculate GDP is to sum the total sales of all business ﬁrms.

If real GDP rises and the GDP price index has increased,

If inﬂows to the capital stock are greater than outﬂows, then

National income is the sum of employee compensation, proﬁts, and the following items, except

Which of the following transactions would be included in GDP?

The value of corporate stocks and bonds traded in a given year is

Real GDP accounts for changes in product quality; nominal GDP does not.

All expenditures on new construction are included as investment in calculating GDP.

The following are national income account data for a hypothetical economy in billions of dollars: government purchases ($1,050), personal consumption expenditures ($4,800), imports ($370), Exports ($240), and gross private domestic investment ($1,130). What is GDP for this economy?

The agency responsible for compiling the National Income and Product Accounts for the U.S. economy is the

In year 1, Trailblazer Bicycle Company produced a mountain bike that was delivered to a retail outlet in November of that same year. The bicycle was sold to E.Z. Ryder in March of the next year, year 2. This bicycle is counted as

The following are examples of ﬁnal goods in national income accounting, except

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures Caused by Externalities Asymmetric Information

Public Goods, Public Choice, and Government Failure

An Introduction to Macroeconomics

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

Fiscal Policy, Deficits, and Debt

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

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