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

A) $1,049 billion. B) $1,079 billion. C) $1,090 billion. D) $1,101 billion. A) $1,049 billion. B) $1,079 billion. C) $1,090 billion. D) $1,101 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). Personal income is

A) $621 billion. B) $656 billion. C) $705 billion. D) $716 billion. A) $621 billion. B) $656 billion. C) $705 billion. D) $716 billion.

\[\begin{array} { | c | c | c | c | } \hline \text { Year } & \text { Units of Output } & \text { Price of Bagel per Unit } & \text { Price Index } ( \text { Year } 1 = 100 ) \\ \hline 1 & 10 & \$ 10 & 100 \\ \hline 2 & 12 & 20 & 200 \\ \hline 3 & 15 & 30 & 300 \\ \hline 4 & 20 & 40 & 400 \\ \hline \end{array}\] The table contains data for a hypothetical single-product economy. Real GDP in year 4 is

A) $320. B) $450. C) $200. D) $800. A) $320. B) $450. C) $200. D) $800.

\[\begin{array} { | l | c | } \hline \text { Government Purchases } & \$ 15 \\ \hline \text { Consumption } & 90 \\ \hline \text { Gross Investment } & 20 \\ \hline \text { Consumption of Fixed Capital (depreciation) } & 5 \\ \hline \text { Exports } & 8 \\ \hline \text { Imports } & 12 \\ \hline \end{array}\] Refer to the accompanying data (all ?gures in billions of dollars). GDP is

A) $116. B) $121. C) $125. D) $150. A) $116. B) $121. C) $125. D) $150.

A) the price of a market basket in a given year divided by the price of an identical market basket in a reference year. B) a comparison of real GDP in one period relative to another. C) the cost of a market basket of goods and services in a base period divided by the cost of the same market basket in another period. D) a ratio of real GDP to nominal GDP. A) the price of a market basket in a given year divided by the price of an identical market basket in a reference year. B) a comparison of real GDP in one period relative to another. C) the cost of a market basket of goods and services in a base period divided by the cost of the same market basket in another period. D) a ratio of real GDP to nominal GDP.

Exam 7: Measuring Domestic Output and National Income

A nation's capital stock was valued at $500 billion at the start of the year and $575 billion at the end. Consumption of ﬁxed capital in the year was $35 billion. Assuming stable prices, net Investment was

(Multiple Choice)

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Question 101

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). Gross domestic product is

(Multiple Choice)

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Question 102

Suppose that GDP was $200 billion in year 1 and that all other components of expenditures remained the same in year 2 except that business inventories increased by $10 billion. GDP in year 2 is

(Multiple Choice)

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Question 103

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). Personal income is

(Multiple Choice)

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Question 104

Environmental pollution is accounted for in

(Multiple Choice)

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Question 105

Disinvestment occurs when

(Multiple Choice)

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Question 106

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. Real GDP in year 4 is

(Multiple Choice)

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Question 107

The total amount of income earned by U.S. resource suppliers in a year, plus taxes on production and imports, is measured by

(Multiple Choice)

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Question 108

In determining real GDP, economists adjust the nominal GDP by using the

(Multiple Choice)

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Question 109

Government Purchases \ 15 Consumption 90 Gross Investment 20 Consumption of Fixed Capital (depreciation) 5 Exports 8 Imports 12 Refer to the accompanying data (all ?gures in billions of dollars). GDP is

(Multiple Choice)

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Question 110

Suppose that GDP was $200 billion in year 1 and that all other components of expenditures remained the same in year 2 except that business inventories fell by $10 billion. GDP in year 2 is

(Multiple Choice)

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Question 111

Welfare payments to low-income families are included in national income.

(True/False)

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Question 112

Which of the following is not a component of GDP in the expenditures approach?

(Multiple Choice)

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Question 113

A price index is

(Multiple Choice)

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Question 114

"Net foreign factor income" in the national income accounts refers to the difference between

(Multiple Choice)

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Question 115

Which of the following activities is excluded from GDP, causing GDP to understate a nation's production?

(Multiple Choice)

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Question 116

Suppose that inventories were $40 billion in year 1 and $50 billion in year 2. For year 2, national income accountants would

(Multiple Choice)

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Question 117

The value of U.S. imports is

(Multiple Choice)

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Question 118

When gross private domestic investment exceeds depreciation, it can be concluded that

(Multiple Choice)

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Question 119

If net foreign factor income is zero and there are no statistical discrepancies, the sum of national income and the consumption of ﬁxed capital equals

(Multiple Choice)

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Question 120

A nation's capital stock was valued at $500 billion at the start of the year and $575 billion at the end. Consumption of ﬁxed capital in the year was $35 billion. Assuming stable prices, net Investment was

Suppose that GDP was $200 billion in year 1 and that all other components of expenditures remained the same in year 2 except that business inventories increased by $10 billion. GDP in year 2 is

Environmental pollution is accounted for in

Disinvestment occurs when

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. Real GDP in year 4 is

The total amount of income earned by U.S. resource suppliers in a year, plus taxes on production and imports, is measured by

In determining real GDP, economists adjust the nominal GDP by using the

Government Purchases \ 15 Consumption 90 Gross Investment 20 Consumption of Fixed Capital (depreciation) 5 Exports 8 Imports 12 Refer to the accompanying data (all ?gures in billions of dollars). GDP is

Suppose that GDP was $200 billion in year 1 and that all other components of expenditures remained the same in year 2 except that business inventories fell by $10 billion. GDP in year 2 is

Welfare payments to low-income families are included in national income.

Which of the following is not a component of GDP in the expenditures approach?

A price index is

"Net foreign factor income" in the national income accounts refers to the difference between

Which of the following activities is excluded from GDP, causing GDP to understate a nation's production?

Suppose that inventories were $40 billion in year 1 and $50 billion in year 2. For year 2, national income accountants would

The value of U.S. imports is

When gross private domestic investment exceeds depreciation, it can be concluded that

If net foreign factor income is zero and there are no statistical discrepancies, the sum of national income and the consumption of ﬁxed capital equals

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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