Question 1

Exhibit 6-5
  
-In Exhibit 6-5, Disposable Income equals

Accepted Answer

A) $365 billion 
B) $375 billion 
C) $385 billion 
D) $390 billion 
E) $420 billion 
A) $365 billion 
B) $375 billion 
C) $385 billion 
D) $390 billion 
E) $420 billion A

Question 2

The difference between Personal Income and Disposable Income is

Accepted Answer

A) personal taxes (e.g., federal personal income tax) 
B) indirect business taxes 
C) corporate income taxes 
D) payroll taxes paid by employers 
E) Social Security contributions paid by employers 
A) personal taxes (e.g., federal personal income tax) 
B) indirect business taxes 
C) corporate income taxes 
D) payroll taxes paid by employers 
E) Social Security contributions paid by employers A

Question 3

Exhibit 6-4
  
-In Exhibit 6-4, Personal Income equals

Accepted Answer

A) $420 billion 
B) $385 billion 
C) $375 billion 
D) $365 billion 
E) $390 billion 
A) $420 billion 
B) $385 billion 
C) $375 billion 
D) $365 billion 
E) $390 billion B

Question 4

The reason that indirect business taxes are subtracted from NDP to get NI is that they

Accepted Answer

A) represent income received but not earned 
B) do not represent income to any individual 
C) represent income that we earn but do not receive 
D) represent investment undertaken merely to replace worn-out capital 
E) reflect double counting of intermediate goods 
A) represent income received but not earned 
B) do not represent income to any individual 
C) represent income that we earn but do not receive 
D) represent investment undertaken merely to replace worn-out capital 
E) reflect double counting of intermediate goods

Question 5

Exhibit 6-4
  
-In Exhibit 6-4, Gross Domestic Product equals

Accepted Answer

A) $365 billion 
B) $385 billion 
C) $375 billion 
D) $390 billion 
E) $420 billion 
A) $365 billion 
B) $385 billion 
C) $375 billion 
D) $390 billion 
E) $420 billion

Question 6

Given the following data: depreciation = $450; net indirect business taxes = $400; employee compensation = $3,000; proprietor's income = $200; corporate profits = $400; net interest = $300; rental income = $50; national income equals

Accepted Answer

A) $3,100 
B) $3,500 
C) $3,550 
D) $3,950 
E) $4,400 
A) $3,100 
B) $3,500 
C) $3,550 
D) $3,950 
E) $4,400

Question 7

Which of the following does not help account for the difference between GDP and National Income (NI)?

Accepted Answer

A) depreciation 
B) net indirect business taxes 
C) personal income taxes 
D) earnings of American owned resources located abroad 
E) earnings of foreign owned resources located in the U.S. 
A) depreciation 
B) net indirect business taxes 
C) personal income taxes 
D) earnings of American owned resources located abroad 
E) earnings of foreign owned resources located in the U.S.

Question 8

Disposable income is commonly referred to as take home pay.

Accepted Answer

A) True 
 B)False

Question 9

Disposable income is personal income after taxes.

Accepted Answer

A) True 
 B)False

Question 10

Factors that explain the differences between National Income and Personal Income include all of the following, except one. Which is the exception?

Accepted Answer

A) Social Security contributions paid by employers 
B) corporate income taxes 
C) undistributed corporate profits 
D) government and business transfers 
E) indirect business taxes 
A) Social Security contributions paid by employers 
B) corporate income taxes 
C) undistributed corporate profits 
D) government and business transfers 
E) indirect business taxes

Question 11

Disposable Income is Personal Income minus personal taxes.

Accepted Answer

A) True 
 B)False

Question 12

National income is

Accepted Answer

A) GDP minus depreciation 
B) NDP minus depreciation 
C) GDP minus depreciation plus indirect business taxes 
D) GDP plus depreciation minus indirect business taxes 
E) NDP minus indirect business taxes 
A) GDP minus depreciation 
B) NDP minus depreciation 
C) GDP minus depreciation plus indirect business taxes 
D) GDP plus depreciation minus indirect business taxes 
E) NDP minus indirect business taxes

Question 13

Exhibit 6-5
  
-In Exhibit 6-5, Gross private domestic investment is equal to

Accepted Answer

A) $30 billion 
B) $40 billion 
C) $60 billion 
D) $70 billion 
E) $80 billion 
A) $30 billion 
B) $40 billion 
C) $60 billion 
D) $70 billion 
E) $80 billion

Question 14

Personal income equals national income minus personal taxes.

Accepted Answer

A) True 
 B)False

Question 15

Personal income minus personal taxes equals disposable income.

Accepted Answer

A) True 
 B)False

Question 16

Exhibit 6-4
  
-In Exhibit 6-4, Disposable Income equals

Accepted Answer

A) $365 billion 
B) $375 billion 
C) $385 billion 
D) $390 billion 
E) $420 billion 
A) $365 billion 
B) $375 billion 
C) $385 billion 
D) $390 billion 
E) $420 billion

Question 17

What accounts for the difference between GDP and NDP?

Accepted Answer

A) inventory changes 
B) depreciation 
C) undistributed corporate profits 
D) transfer payments 
E) business taxes 
A) inventory changes 
B) depreciation 
C) undistributed corporate profits 
D) transfer payments 
E) business taxes

Question 18

Income earned but not received refers to

Accepted Answer

A) government transfers, business transfers, and social insurance taxes 
B) government transfers, social insurance taxes, and corporate income taxes 
C) business transfers, net personal interest income, and rental income 
D) social insurance taxes, undistributed corporate profits, and corporate income taxes 
E) business transfers, social insurance taxes, and corporate profits 
A) government transfers, business transfers, and social insurance taxes 
B) government transfers, social insurance taxes, and corporate income taxes 
C) business transfers, net personal interest income, and rental income 
D) social insurance taxes, undistributed corporate profits, and corporate income taxes 
E) business transfers, social insurance taxes, and corporate profits

Question 19

Exhibit 6-4
  
-In Exhibit 6-4, Net Domestic Product equals

Accepted Answer

A) $365 billion 
B) $375 billion 
C) $385 billion 
D) $390 billion 
E) $420 billion 
A) $365 billion 
B) $375 billion 
C) $385 billion 
D) $390 billion 
E) $420 billion

Question 20

Which one of the following is not included in National Income?

Accepted Answer

A) employee compensation 
B) proprietors' income 
C) rental incomes of persons 
D) corporate profits 
E) gross interest income 
A) employee compensation 
B) proprietors' income 
C) rental incomes of persons 
D) corporate profits 
E) gross interest income

Exam 21: National Income Accounts

Exhibit 6-5 -In Exhibit 6-5, Disposable Income equals

The difference between Personal Income and Disposable Income is

Exhibit 6-4 -In Exhibit 6-4, Personal Income equals

The reason that indirect business taxes are subtracted from NDP to get NI is that they

Exhibit 6-4 -In Exhibit 6-4, Gross Domestic Product equals

Given the following data: depreciation = $450; net indirect business taxes = $400; employee compensation = $3,000; proprietor's income = $200; corporate profits = $400; net interest = $300; rental income = $50; national income equals

Which of the following does not help account for the difference between GDP and National Income (NI)?

Disposable income is commonly referred to as take home pay.

Disposable income is personal income after taxes.

Factors that explain the differences between National Income and Personal Income include all of the following, except one. Which is the exception?

Disposable Income is Personal Income minus personal taxes.

National income is

Exhibit 6-5 -In Exhibit 6-5, Gross private domestic investment is equal to

Personal income equals national income minus personal taxes.

Personal income minus personal taxes equals disposable income.

Exhibit 6-4 -In Exhibit 6-4, Disposable Income equals

What accounts for the difference between GDP and NDP?

Income earned but not received refers to

Exhibit 6-4 -In Exhibit 6-4, Net Domestic Product equals

Which one of the following is not included in National Income?

The Art and Science of Economic Analysis

Economic Tools and Economics Systems

Economic Decision Makers

Demand Supply and Markets

Introduction to Macroeconomics

Tracking the Us Economy

Unemployment and Inflation

Productivity and Growth

Aggregate Expenditure

Aggregate Expenditure and Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

The Algebra of Income and Expenditure

Monetary Theory and Policy

Macro Policy Debate: Active or Passive

The Algebra of Demand-Side Equilibrium

International Trade

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Understanding Graphs

Variable Net Exports

Variable Net Exports Revisited

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