Exam 20: The Measurement of National Income

The table below includes data for a one-year period required to calculate GDP for this economy.All figures are in billions of dollars. TABLE 20-2 -Refer to Table 20-2.What is the value of GDP,as calculated from the income side?

To calculate GDP from the expenditure side,one must add together

In national-income accounting,the concept of net domestic income is useful because it

Gross domestic product is the sum of factor incomes ________ indirect business taxes,________ subsidies,________ depreciation.

Consider a firm producing car parts in Oshawa,Ontario.In determining this firm's value added to national income,we would start with its total revenue and subtract the cost of (among other things) 1)imported plastic molds; 2)labour costs for sales and marketing; 3)computer-aided design (CAD)equipment.

A country's computed GDP deflator 1)excludes the changes in the price of imported goods; 2)is less relevant than the measured CPI for the typical consumer; 3)is set to be equal to 100 in its base year.

The table below includes data for a one-year period required to calculate GDP from the income side for a teeny-tiny economy. TABLE 20-4 -Refer to Table 20-4.When calculating GDP from the income side,we need to add together the following items from the data provided:

Consider the circular flow of expenditure and income in the Canadian economy.Which of the following is a withdrawal from the circular flow?

Consider Canada's national accounts.An example of a transfer payment is

If a firm's depreciation exceeds its gross investment,then its

In national-income accounting,"depreciation" refers to

In national-income accounting,a fall in G_a (other things being equal)will be recorded if

Real GDP is equivalent to

Suppose that nominal national income in some country fell from $100 billion to $95 billion during the year.Over the same period,inflation was 5%.Therefore the real national income in this country

Consider the circular flow of expenditure and income in the Canadian economy.Which of the following is an injection into the circular flow?

Measures of GDP may understate the economic well-being of people in developing countries if those countries tend to

Consider Canada's GDP deflator and Consumer Price Index (CPI).Now suppose the prices of the following goods and services increased.Which is likely to have a larger effect on the GDP deflator than the CPI?

The table below shows total output for an economy over 2 years. TABLE 20-5 -Refer to Table 20-5.Assume the output of all three goods is consumed in the country,and there are no imported goods and services.If 2015 is used as the base year,then the consumer price index (CPI)in 2016 was approximately

Consider a firm producing skateboards in one factory.In determining this firm's value added to national income,we would start with its total revenue and subtract the cost of (among other things) 1)salaries to the firm's cleaning staff; 2)electricity used in the factory; 3)the wood used for the base of the skateboards.

When calculating GDP from the expenditure side,G_a comprises