Exam 7: Measuring Domestic Output and National Income

GDP can be calculated by summing

Only three goods are produced in an economy in the following amounts: A = 10, B = 30, C = 5. The current year per-unit prices of these three goods are A = $2, B = $3, and C = $1. Nominal GDP in the Current year is

Alejandro Scoobertini owns a store specializing in soccer jerseys. One year, he purchased $150,000 worth of jerseys from manufacturers and later that year, sold the jerseys for $280,000. Based on this Information, what was the value added at Alejandro's store?

Economy A: gross investment equals depreciation Economy B: depreciation exceeds gross investment Economy C: gross investment exceeds depreciation Based on this information, positive net investment is occurring in

The purchase of Walmart stock is a part of gross investment but not of net investment.

Interest on the public debt is included as a part of government purchases in determining GDP by the expenditures method.

1 Consumption of Fixed Capital \ 438 2 Taxes on Production and Imports 326 3 Compensation of Employees 2,347 4 Rents 14 5 Interest 287 6 Proprietors' Income 242 7 Corporate Profits 297 8 Personal Consumption Expenditures 2,582 9 Gross Private Domestic Investment 669 10 Government Purchases 815 11 Net Exports -78 12 Net Foreign Factor Income 46 13 Statistical Discrepancy 50 Refer to the accompanying national income data (in billions of dollars). The national income in this economy can be estimated by adding items

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

Nominal GDP is

Proprietors' Income \ 20 Compensation of Employees 300 Consumption of Fixed Capital 15 Gross Investment 80 Rents 10 Interest 20 Exports 30 Imports 50 Corporate Profits 25 Taxes on Production and Imports 5 Net Foreign Factor Income 0 Statistical Discrepancy 0 Refer to the accompanying data. All ?gures are in billions of dollars. National income is

Value added can be determined by

Year Units of Output Price of Bagel per Unit Price Index (Year 1=100) 1 10 \ 10 100 2 12 20 200 3 15 30 300 4 20 40 400 The table contains data for a hypothetical single-product economy. Nominal GDP in year 4 is

Proprietors' Income \ 20 Compensation of Employees 300 Consumption of Fixed Capital 15 Gross Investment 80 Rents 10 Interest 20 Exports 30 Imports 50 Corporate Profits 25 Taxes on Production and Imports 5 Net Foreign Factor Income 0 Statistical Discrepancy 0 Refer to the accompanying data. All ?gures are in billions of dollars. Gross domestic product is

A business buys $5,000 worth of inputs from other firms in order to produce a product. The business makes 100 units of the product and each of them sells for $65. The value added by the Business to these products is

If intermediate goods and services were included in GDP,

Which of the following do national income accountants consider to be investment?

The largest component of total expenditures in the United States is

Value added refers to

The sale of a used automobile would not be included in GDP of the current year because it is a

An example of final goods in national income accounts would be