Exam 26: Measuring Domestic Output and National Income

Answer the question on the basis of the following data.All figures are in billions of dollars: Government Purchases \1 5 Consumption 90 Gross Investment 20 Consumption of Fixed Capital 5 Exports 8 Imports 12 Refer to the data.GDP is:

In the second quarter (three-month period)of 2001,U.S.nominal GDP increased but U.S.real GDP declined.We can conclude that:

NDP can be determined by adding taxes on production and imports to GDP.

When an economy's production capacity is expanding:

GDP excludes:

The largest component of national income is:

The National Income and Product Accounts (NIPA)help economists and policymakers to:

National income accountants can avoid multiple counting by:

Answer the question on the basis of the following data.All figures are in billions of dollars. Gross Private Domestic Investment \4 6 Exports of the U.S. 9 Disposable Income 190 Personal Saving 10 Government Purchases 84 Net Foreign Factor Income 10 Consumption of Fixed Capital 52 Dividends 13 Imports of the U.S. 12 Taxes on Production and Imports 22 Personal Taxes 38 Social Security Contributions 23 Statistical Discrepancy 0 Refer to the data.The national income is:

Answer the question on the basis of the following information: 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. (Advanced analysis)Refer to the information.If the per unit prices of the three goods were each $1 in a base year used to construct a GDP price index,then the GDP price index in the current year is:

Answer the question on the basis of the following national income data for the economy.All figures are in billions of dollars. Personal Consumption Expenditures \ 400 Government Purchases 128 Gross Private Domestic Investment 88 Net Exports 7 Net Foreign Factor Income 0 Consumption of Fixed Capital 43 Taxes on Production and Imports 50 Compensation of Employees 369 Rents 12 Interest 15 Proprietors' Income 52 Corporate Income Taxes 36 Dividends 24 Undistributed Corporate Profits 22 Statistical Discrepancy 0 Refer to the data.The national income is:

If real GDP falls from one period to another,we can conclude that:

Use the following table for a hypothetical single-product economy. 1 2 3 4 Units of 10 12 15 20 Price of Bagel \ 10 20 30 40 Price Index 100 200 300 400 Refer to the data.Nominal GDP in year 3 is:

Answer the question on the basis of the following data.All figures are in billions of dollars. Gross Investment \ 18 National Income 100 Net Exports 2 Personal Income 85 Personal Consumption Expenditures 70 Saving 5 Government Purchases 20 Net Domestic Product 105 Statistical Discrepancy 0 Refer to the data.From this information we can conclude that the net foreign factor income is:

A large underground economy results in an:

Answer the question on the basis of the following data.All figures are in billions of dollars: Government Purchases \1 5 Consumption 90 Gross Investment 20 Consumption of Fixed Capital 5 Exports 8 Imports 12 Refer to the data.NDP (net domestic product)is:

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

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

Which of the following best defines national income?

Tom Atoe grows fruits and vegetables for home consumption.This activity is: