Exam 12: Gdp: Measuring Total Production and Income

Table 12-27 National income \ 1,000 Retained earnings not paid as dividends 50 Transfer payments 40 Interest on government bonds 20 Personal taxes 30 The components of national income for an economy are represented in Table 12-27 above.All values are in billions of dollars. -Refer to Table 12-27.What is the level of personal income for this economy?

In the circular flow diagram,________ supply the factors of production,and ________ goods and services.

Table 12-30 Billions of Dollars GDP \ 3,250 Depreciation 300 Retained earnings 1,000 Personal tax payments 500 Transfer payments 80 -Refer to Table 12-30.Based on the table above,what is personal income for this economy?

If a U.S.firm produces cars in Mexico,that production should count towards

Gross national product is defined as

How are intermediate goods treated in the calculation of GDP?

Which of the following would not be included in the expenditure category called investment expenditures?

Table 12-17 Product Quantity Price Quantity Price Movies 20 \ 6.00 30 \ 7.00 Burgers 100 2.00 90 2.50 Bikes 3 1,000.00 6 1,100.00 A very simple economy produces three goods: movies, burgers, and bikes.The quantities produced and their corresponding prices for 2006 and 2013 are shown in the table above. -Refer to Table 12-17.What is real GDP in 2013,using 2006 as the base year?

Which of the following equations correctly measures GDP in an economy?

National income equals gross domestic product

An example of business fixed investment spending is

Presently,GDP is ________ to compensate for the costs of environmental damage.

In the United States in 2013,the Bureau of Economic Analysis began counting spending by firms and individuals on developing entertainment products as investment.This change will

Gross domestic product understates the total production of final goods and services because of the omission of

When consumers are less confident about their jobs or incomes,they are more likely to

Table 12-17 Product Quantity Price Quantity Price Movies 20 \ 6.00 30 \ 7.00 Burgers 100 2.00 90 2.50 Bikes 3 1,000.00 6 1,100.00 A very simple economy produces three goods: movies, burgers, and bikes.The quantities produced and their corresponding prices for 2006 and 2013 are shown in the table above. -Refer to Table 12-17.What is nominal GDP in 2006?

The purchase of a new house is included in

For developed countries like the United States,GDP will always exceed GNP.

If the value added of a firm is positive,will the firm necessarily have positive profits?

The "underground economy" is also referred to as