Exam 6: Measuring National Output and National Income

Refer to the information provided in Table 6.4 below to answer the questions that follow. Table 6.4 -Refer to Table 6.4.The value for national income in billions of dollars is

If nominal GDP rises,then so must real GDP.

Consumers can spend their entire personal income.

If the value of net exports is negative,then

A farmer buys a new tractor from John Deere to use on her cotton farm.This tractor is included in GDP as

The difference between GNP and GDP is depreciation.

Production in the illegal or underground economy is not reflected in GDP.

Disposable personal income is personal income minus personal taxes.

Gross national income is

Related to the Economics in Practice on p.436: If the effects of pollution on society as a measure of welfare were included in GDP calculations,the measured level of GDP would most likely

What should be subtracted from GDP to calculate national income?

Refer to the information provided in Table 6.1 below to answer the questions that follow. Table 6.1 -Refer to Table 6.1.The value for net exports in billions of dollars is

Dairy Queen opens a branch in Estonia.The sales of the restaurant enter the U.S.GDP and the Estonian GNP.

If net investment in 2013 is $500 billion and gross investment in 2013 is $900 billion,depreciation in 2013 is

If the personal saving rate is 5% and personal saving is $10 billion,the value of personal disposable income

Which of the following is an example of a final good or service?

Personal income

If no foreign companies produce in a country,but many of the country's companies produce abroad,then

If real GDP increased during a year,then output must have increased.

Total income in the economy can sometimes be greater than total spending.