Deck 4: Measuring Gdp and Economic Growth

Question 1

Which one of the following is an income flow from firms to households?

A)goods and services
B)factor services
C)payments for goods and services
D)payments for factor services
E)loans

Answer 1

payments for factor services

Question 2

Which of the following would be an example of a consumption expenditure?

A)the purchase of a new car by the IPSCO steel company
B)an increase in welfare payments to single mothers
C)the purchase of a new car by the Singh household
D)more spending by the government on children's programs
E)spending on protection services for the prime minister

Answer 2

the purchase of a new car by the Singh household

Question 3

Which one of the following is false?

A)Y = C + I + G + M - X
B)X - M = Y - C - I - G
C)Y = C + I + G + X - M
D)Y + M = C + I + G + X
E)Y - C - I - G - X + M = 0

Answer 3

Y = C + I + G + M - X

Question 4

SaskWidget produces plastic parts.At the beginning of the year, they held $24 million worth of capital.At the end of the year, they held $20 million worth of capital.It must be the case that

A)depreciation exceeded gross investment by $4 million.
B)depreciation equals $4 million.
C)gross investment decreased by $4 million.
D)gross investment increased by $4 million.
E)net investment increased by $4 million.

Question 5

For the aggregate economy, income equals

A)expenditure equals GDP only if there is no depreciation.
B)expenditure, but these are not generally equal to GDP.
C)expenditure equals GDP.
D)expenditure equals GDP only if there is no government or foreign sectors.
E)GDP, but expenditure is generally less than these.

Question 6

Which one of the following is true?

A)Y + M = C + I + G
B)I + G + X = Y + I + M
C)Y = C + I + G + X - M
D)Y = C + S + I
E)Y = C + I + G + M - X

Question 7

The purchasers in the goods markets are

A)households and firms only.
B)households and net exporters only.
C)households, firms, and government only.
D)households and government only.
E)households, firms, government, and those who import our goods.

Question 8

In the circular flow model,

A)firms are sellers of goods and services in goods markets.
B)firms are sellers of the factors in factor markets.
C)households are buyers of goods and services in the factor markets.
D)firms are buyers of goods and services in final markets.
E)households are sellers of factor services in goods markets.

Question 9

In calculating GDP, economists use the value of final goods and services because

A)GDP is underestimated if intermediate goods are used instead.
B)intermediate goods are imported from other countries.
C)final goods can be exported to other countries.
D)final goods and services do not depreciate.
E)by using final goods and services, they avoid double counting.

Question 10

Suppose the economy's capital increases over the year.It must be true that

A)net investment was greater than gross investment.
B)net investment was positive.
C)depreciation is less than zero.
D)depreciation was greater than net investment.
E)depreciation was greater than gross investment.

Question 11

The change in capital from year to year is equal to

A)gross investment minus net investment.
B)net investment minus depreciation
C)savings.
D)gross investment.
E)gross investment minus depreciation.

Question 12

Which of the following statements is true?

A)Final goods and services produced in Canada by foreigners are part of the foreign country's GDP.
B)Final goods and services produced in Canada by foreigners are imports.
C)Final goods and services produced in Canada by foreigners are exports.
D)Final goods and services produced abroad by Canadians are part of Canadian GDP.
E)Final goods and services produced in Canada by foreigners are part of Canada's GDP.

Question 13

Which one of the following flows from firms to households?

A)goods and services
B)factor services
C)payments for goods and services
D)payments for loans
E)loans

Question 14

Which one of the following is an expenditure flow from households to firms?

A)goods and services
B)factor services
C)payments for goods and services
D)payments for factor services
E)loans

Question 15

Gross domestic product is

A)the market value of all the intermediate goods and services produced in a country during a given time period.
B)the average value of output produced in a country in a given time period.
C)the market value of all goods and services produced in a country during a given time period.
D)the market value of all the final goods and services produced in a country during a given time period.
E)the final value of all goods produced in a country in a given time period.

Question 16

The circular flow diagram illustrates the expenditures made by

A)households, firms, governments, and the rest of the world.
B)households and investors only.
C)households and firms only.
D)households only.
E)firms, households, and governments only.

Question 17

Which of the following is not correct?

A)Gross investment is the amount by which the value of capital increases.
B)Investment is the purchase of new plant, equipment, and buildings and the additions to inventories.
C)Gross investment is the total amount spent buying new capital and replacing depreciated capital.
D)Depreciation decreases the value of a firm's capital.
E)Net investment equals gross investment minus depreciation.

Question 18

Complete the following sentence.Net exports equals

A)exports divided by imports.
B)imports minus exports.
C)exports plus imports.
D)exports minus imports.
E)foreign borrowing by residents of Canada minus domestic borrowing by nonresidents of Canada.

Question 19

Of the following items, which one would be considered as investment in the National Income and Expenditure Accounts?

A)The purchase of a 100- year- old house that was put on the protected historic sites list.
B)Your purchase of a new car.
C)The purchase of 100 shares of Bell Canada stock on the Toronto Stock Exchange.
D)The purchase of a new van by a potter who packs it with his wares and travels to art shows on weekends.
E)The purchase of a Canadian government bond.

Question 20

Capital in year 2018 equals capital in year 2017

A)plus gross investment.
B)plus net investment.
C)minus depreciation.
D)plus net investment plus depreciation.
E)plus net investment minus depreciation.

Question 21

The value of intermediate goods is not counted in GDP

A)to avoid counting their value twice and overstating the value of GDP.
B)because they are sold in factor markets.
C)because they are not consumed in the current year.
D)because intermediate goods reduce society's welfare.
E)because it is difficult to accurately record all the intermediate goods produced in an economy as large as Canada.

Question 22

Which one of the following would not be counted as part of this year's GDP?

A)the lumber you purchase so you can build bookshelves for your room
B)the purchase of wheat that was produced in the current year by a Saskatchewan farmer
C)the purchase of a new personal computer that was produced in Canada in the current year
D)the government bond you buy for your newborn niece
E)the purchase of a house that was built in the current year

Question 23

Intermediate goods are

A)purchased this year but consumed in future years.
B)included directly in the measure of GDP.
C)sold to their ultimate user.
D)not included in the measure of GDP because they are usually imported.
E)produced by one firm, bought by another firm, and used as a component of a final good or service.

Question 24

Use the figure below to answer the following questions.
Figure 4.1.1
Refer to Figure 4.1.1, which shows the circular flow of expenditure and income for Venus.During 2017, A was $100, B was $50, C was $30 and D was $10.How much is net exports?

A)$100
B)$50
C)$30
D)$25
E)$10

Question 25

Which of the following increases Canadian GDP?

A)The production and sale of flour to a bakery
B)I sell my used Honda.
C)I shovel my own driveway.
D)The purchase of a CD made in China
E)The ice cream I buy from my grocery store

Question 26

Use the figure below to answer the following questions.
Figure 4.1.1
Refer to Figure 4.1.1, which shows the circular flow of expenditure and income for Venus.During 2017, A was $100, B was $50, C was $30 and D was $10.How much is GDP?

A)$100
B)$75
C)$50
D)$30
E)$90

Question 27

Use the information below to answer the following questions.
Fact 4.1.1
At the beginning of 2017, Peter's Perfectly Prickly Piercing Parlour had $5,000 worth of bellybutton and eyebrow rings on han computers each worth $1,000), 1 cash register worth $100, electrical equipment worth $500, and one piercing needle worth $5 the end of 2017, they had $5,000 worth of bellybutton and eyebrow rings, a new high speed computer worth $3,000 they had out the old ones), the same cash register, which was now worthless, electrical equipment worth $600, and they had upgraded the needle at a cost of $700 which was valued at $1,000.
Refer to Fact 4.1.1.Peter's net investment in 2017 is

A)$7,800.
B)$1,800.
C)$1,500.
D)$3,800.
E)$2,000.

Question 28

Use the information below to answer the following questions.
Fact 4.1.1
At the beginning of 2017, Peter's Perfectly Prickly Piercing Parlour had $5,000 worth of bellybutton and eyebrow rings on han computers each worth $1,000), 1 cash register worth $100, electrical equipment worth $500, and one piercing needle worth $5 the end of 2017, they had $5,000 worth of bellybutton and eyebrow rings, a new high speed computer worth $3,000 they had out the old ones), the same cash register, which was now worthless, electrical equipment worth $600, and they had upgraded the needle at a cost of $700 which was valued at $1,000.
Refer to Fact 4.1.1.Peter's depreciation in 2017 is

A)$3,000.
B)zero.
C)$1,000.
D)$2,300.
E)$800.

Question 29

Use the information below to answer the following questions.
Fact 4.1.1
At the beginning of 2017, Peter's Perfectly Prickly Piercing Parlour had $5,000 worth of bellybutton and eyebrow rings on han computers each worth $1,000), 1 cash register worth $100, electrical equipment worth $500, and one piercing needle worth $5 the end of 2017, they had $5,000 worth of bellybutton and eyebrow rings, a new high speed computer worth $3,000 they had out the old ones), the same cash register, which was now worthless, electrical equipment worth $600, and they had upgraded the needle at a cost of $700 which was valued at $1,000.
Refer to Fact 4.1.1.Peter's capital at the beginning of 2017 is

A)$8,100.
B)$5,000.
C)$7,000.
D)$7,600.
E)$3,100.

Question 30

Stock and bond sales are not included in GDP because they

A)can be sold online.
B)are not sold in the country in which they are produced.
C)are not goods and services.
D)have volatile prices.
E)represent corporate production.

Question 31

This year, an art collector sold a piece of pottery for $300.He had purchased it for $200 two years earlier.How will the most recent sale affect this year's GDP?

A)GDP will increase by $200.
B)GDP will increase by $100.
C)GDP will increase by $300.
D)GDP 2 years ago must be adjusted downwards by $200, and current GDP will rise by $300.
E)GDP is unaffected.

Question 32

Use the figure below to answer the following questions.
Figure 4.1.1
Refer to Figure 4.1.1, which shows the circular flow of expenditure and income for Venus.During 2017, A was $100, B was $50, C was $30 and D was $10.How much is aggregate expenditure?

A)$100
B)$50
C)$90
D)$75
E)$30

Question 33

From the following list, choose the item that would be included in a current measure of GDP.

A)the purchase of 10 litres of gasoline for your car
B)the purchase of a previously owned house that was built last year
C)a $2,000 cheque from your Aunt Grace
D)income from the sale of your Canadian Snowfun stocks
E)a social security cheque for $500

Question 34

In calculating GDP, all of the following are excluded except

A)purchases of stocks and bonds.
B)the value of all homes built in the year but not sold.
C)the value of intermediate goods.
D)the value of used goods.
E)subsidies from the government.

Question 35

Use the figure below to answer the following questions.
Figure 4.1.1
Refer to Figure 4.1.1, which shows the circular flow of expenditure and income for Venus.During 2017, A was $100, B was $50, C was $30 and D was $10.What is aggregate income?

A)$50
B)$90
C)$75
D)$100
E)$25

Question 36

In the circular flow diagram, aggregate expenditure includes

A)consumption expenditure, investment, government expenditure and net exports.
B)government expenditure, transfer payments, and taxes.
C)consumption expenditure, saving, investment and government expenditure.
D)consumption expenditure, investment, government expenditure, and taxes.
E)saving, investment, and taxes.

Question 37

A bakery uses flour to produce bread.When calculating GDP, we include _______ because when we add the value of the flour to the value of the loaf of bread to calculate GDP, the result is _______.

A)only the value of the flour used to produce the bread; double counting
B)both the value of the bread sold in a store and the value of the flour used to produce the bread; the true value of the economy's output
C)both the value of the bread sold in a store and the value of the flour used to produce the bread; double counting
D)only the value of the bread sold in a store; double counting
E)the value of the bread sold in a store, the value of the flour used to produce the bread, and the wage rate paid to the baker; less than the true value of the economy's output

Question 38

Use the information below to answer the following questions.
Fact 4.1.1
At the beginning of 2017, Peter's Perfectly Prickly Piercing Parlour had $5,000 worth of bellybutton and eyebrow rings on han computers each worth $1,000), 1 cash register worth $100, electrical equipment worth $500, and one piercing needle worth $5 the end of 2017, they had $5,000 worth of bellybutton and eyebrow rings, a new high speed computer worth $3,000 they had out the old ones), the same cash register, which was now worthless, electrical equipment worth $600, and they had upgraded the needle at a cost of $700 which was valued at $1,000.
Refer to Fact 4.1.1.Peter's gross investment in 2017 is

A)$7,800.
B)$5,800.
C)$1,800.
D)$3,800.
E)$2,800.

Question 39

Use the information below to answer the following questions.
Fact 4.1.1
At the beginning of 2017, Peter's Perfectly Prickly Piercing Parlour had $5,000 worth of bellybutton and eyebrow rings on han computers each worth $1,000), 1 cash register worth $100, electrical equipment worth $500, and one piercing needle worth $5 the end of 2017, they had $5,000 worth of bellybutton and eyebrow rings, a new high speed computer worth $3,000 they had out the old ones), the same cash register, which was now worthless, electrical equipment worth $600, and they had upgraded the needle at a cost of $700 which was valued at $1,000.
Refer to Fact 4.1.1.Peter's capital at the end of 2017 is

A)$9,600.
B)$4,400.
C)$7,600.
D)$4,000.
E)$7,000.

Question 40

The firm that printed your textbook bought the paper from XYZ Paper Mills.This purchase of paper _______ part of GDP because the paper is _______ good.

A)is; a nonrenewable
B)is; a final
C)is not; an intermediate
D)is; an intermediate
E)is not; a final

Question 41

The expenditure approach measures GDP by adding together

A)the total expenditures of consumers and firms.
B)the total expenditures of consumers, firms, net exporters, and by governments at all levels.
C)wages, salaries and supplementary labour income, and other factor incomes.
D)compensation of employees, rental income, corporate profits, net interest, proprietors' income, indirect taxes paid, and capital consumption expenditures, and by subtracting subsidies paid by the government.
E)wages, salaries and supplementary labour income, other factor income, subsidies paid by the government, indirect taxes paid, and income of nonfarm unincorporated businesses.

Question 42

Use the table below to answer the following questions.
Table 4.2.1
Data From Eastland
Refer to Table 4.2.1.Net domestic income at factor cost equals

A)$1,280.
B)$1,050.
C)$1,360.
D)$1,350.
E)$1,060.

Question 43

Suppose the economy of Econoworld produces only two goods, kayaks and birdseed.In 2017, 20 kayaks are produced and sold for $1,000 each and 10 bags of birdseed are produced and sold for $30 each.The value of nominal GDP in 2017 is

A)$20,000.
B)$300.
C)$23,000.
D)$20,300.
E)20 kayaks plus 10 bags of birdseed.

Question 44

A hypothetical economy produced four final goods during the year: plates, TVs, bicycles, and computers.Forty plates were produced and sold for $10 each.Five TVs were produced and sold for $300 each.Fifty bicycles were produced and sold for $100 each.Three computers were produced and sold for $750 each.This information can be used to determine

A)indirect taxes less subsidies.
B)total income.
C)net investment.
D)gross investment.
E)whether factors are fully employed.

Question 45

Suppose Mail Boxes Etc.buys a new copier for its store for $1,000.A year later, when the firm wants to upgrade to a new copier, it finds that the old copier is only worth $750.Over the year the copier was used, _______ has occurred.

A)demarcation
B)devaluation
C)depreciation
D)disparity
E)denouement

Question 46

Which one of the following would be included in the calculation of GDP by the expenditure approach?

A)the cost of new kitchen cupboards when you renovate your house
B)the income you pay to your gardener
C)the purchase of 20 shares of a new issue of IBM stock
D)the purchase of an eighteenth century work of art
E)the value of your brother's services when he mows the lawn for the family

Question 47

The largest component of GDP using the expenditure approach is

A)exports.
B)government expenditure.
C)consumption expenditure.
D)imports.
E)investment.

Question 48

Use the table below to answer the following questions.

Refer to Table 4.2.2.Gross domestic product equals

A)$5,050.
B)$2,950.
C)$3,150.
D)$3,050.
E)$3,250.

Question 49

Use the table below to answer the following questions.

Refer to Table 4.2.2.Net domestic income at market prices equals

A)$3,150.
B)$2,450.
C)$3,250.
D)$3,050.
E)$2,950.

Question 50

Use the information below to answer the following questions.
Fact 4.1.3
The components and robots for Toyota auto assembly lines in Canada are built in Japan.Toyota assembles cars for the Canadi market in Ontario.
Refer to Fact 4.1.3.Choose the correct statement.

A)The assembly line components and robots appear as a negative entry in calculating Japan's GDP.
B)The assembly line components and robots appear as consumption expenditure in Canada's GDP.
C)The assembly line components and robots do not appear in Japan's GDP.
D)The assembly line components and robots appear as exports in Canada's GDP.
E)The assembly line components and robots appear as imports in Canada's GDP.

Question 51

Use the information below to answer the following questions.
Fact 4.1.2
Classify each of the following items as a final good or an intermediate good, and identify which is a component of consumptio expenditure, investment, or government expenditure on goods and services:
Item 1.A DVD bought by a household Item 2.A new airplane bought by WestJet Item 3.Aluminum sheets bought by Boeing
Item 4.A new limousine for the prime minister
Refer to Fact 4.1.2.Item 1 is _______ and item 2 is _______.

A)a final good that is consumption expenditure; a final good that is consumption expenditure
B)a final good that is consumption expenditure; a final good that is investment
C)an intermediate good; a final good that is investment
D)an intermediate good; an intermediate good
E)an intermediate good; a final good that is consumption expenditure

Question 52

Use the information below to answer the following questions.
Fact 4.1.3
The components and robots for Toyota auto assembly lines in Canada are built in Japan.Toyota assembles cars for the Canadi market in Ontario.
Refer to Fact 4.1.3.Choose the statement that is incorrect.

A)If any parts for the cars come from Japan, they are recorded as a negative entry in calculating Japan's GDP.
B)Expenditure made by Toyota on building the assembly plant in Ontario is recorded as investment.
C)Expenditure on the cars is part of consumption expenditure in calculating Canada's GDP.
D)The assembly line components and robots appear as exports in Japan's GDP.
E)If any parts for the cars come from Japan, they are Canadian imports.

Question 53

Which of the following relationships is correct?

A)Gross Investment = Net Investment + Depreciation
B)Depreciation = Gross Investment - Consumption expenditure
C)Consumption expenditure = Net Investment - Depreciation
D)Net Investment = Gross Investment + Depreciation
E)Saving = Gross Investment - Taxes

Question 54

Which one of the following is not an example of investment in the expenditure approach to measuring GDP? General Motors

A)buys shares in another company.
B)replaces some worn- out stamping machines.
C)adds 500 new cars to inventories.
D)buys a new auto stamping machine.
E)builds another assembly plant.

Question 55

Use the table below to answer the following questions.
Table 4.2.1
Data From Eastland
Refer to Table 4.2.1.What is aggregate income in Eastland?

A)$1,050
B)$1,120
C)$1,360
D)$1,280
E)$1,350

Question 56

Use the table below to answer the following questions.
Table 4.2.1
Data From Eastland
Refer to Table 4.2.1.From the data in the table, what additional data are needed to compute net domestic income at market prices?

A)statistical discrepancy
B)depreciation
C)subsidies
D)transfer payments
E)net taxes

Question 57

Use the table below to answer the following questions.
Table 4.2.3

Refer to Table 4.2.3.GDP equals

A)$1,000,000.
B)$1,200,000.
C)$1,300,000.
D)$850,000.
E)$1,250,000.

Question 58

Use the table below to answer the following questions.
Table 4.2.1
Data From Eastland
Refer to Table 4.2.1.Gross domestic product equals

A)$1,360.
B)$2,910.
C)$1,150.
D)$1,290.
E)$1,350.

Question 59

Which of the following are equal to one another? I.aggregate production
II.aggregate expenditure
III.aggregate income

A)I equals II equals III.
B)I equals III, but I does not equal II.
C)III equals II, but III does not equal I
D)I equals II, but I does not equal III.
E)II equals III, but II does not equal I.

Question 60

Use the information below to answer the following questions.
Fact 4.1.2
Classify each of the following items as a final good or an intermediate good, and identify which is a component of consumptio expenditure, investment, or government expenditure on goods and services:
Item 1.A DVD bought by a household Item 2.A new airplane bought by WestJet Item 3.Aluminum sheets bought by Boeing
Item 4.A new limousine for the prime minister
Refer to Fact 4.1.2.Item 3 is _______ and item 4 is _______.

A)a final good that is investment; a final good that is government expenditure
B)an intermediate good; a final good that is government expenditure
C)an intermediate good; a final good that is investment
D)a final good that is investment; a final good that is investment
E)a final good that is investment; an intermediate good

Question 61

Net domestic income at market prices equals

A)all incomes minus depreciation.
B)indirect business taxes plus personal income plus net exports.
C)consumption expenditure plus government expenditure plus net exports plus investment.
D)all incomes plus indirect taxes minus subsidies.
E)consumption expenditure plus government expenditure plus exports plus personal taxes.

Question 62

Use the table below to answer the following questions.
Table 4.2.4

Refer to Table 4.2.4.Net domestic income at market prices is equal to

A)$2,150.
B)$1,940.
C)$2,000.
D)$2,250.
E)$2,400.

Question 63

In a given year, nominal GDP increases by approximately 7 percent, but real GDP falls by 2 percent.Which one of the following explanations is most likely?

A)Prices increased by 7 percent.
B)Prices fell by 2 percent.
C)Prices fell by 9 percent.
D)Prices increased by 9 percent.
E)Output rose by 2 percent.

Question 64

If you want to investigate the claim that more goods and services were produced in the economy during 2017 than 2018, what should you study?

A)real GDP
B)GDP calculated using the expenditure approach
C)GDP calculated using the income approach
D)nominal GDP
E)intermediate GDP

Question 65

To derive net domestic income at market prices from GDP income approach),

A)subtract depreciation from GDP.
B)subtract gross investment from GDP.
C)subtract the statistical discrepancy from GDP.
D)add depreciation to GDP.
E)add the statistical discrepancy to GDP.

Question 66

Which approach to measuring GDP is being used when Statistics Canada sums spending on goods and services for consumer goods, government, business investments and net exports?

A)opportunity cost approach
B)factor cost approach
C)income approach
D)expenditure approach
E)value added approach

Question 67

Use the table below to answer the following questions.
Table 4.2.3

Refer to Table 4.2.3.Aggregate income equals

A)$800,000.
B)$850,000.
C)$1,200,000.
D)$1,000,000.
E)$1,300,000.

Question 68

Use the table below to answer the following questions.
Table 4.2.4

Which approach to measuring GDP is being used when Statistics Canada sums wages, salaries and supplementary labour income, and other factor incomes?

A)income approach
B)value- added approach
C)expenditure approach
D)opportunity cost approach
E)factor cost approach

Question 69

Use the table below to answer the following questions.
Table 4.2.4

Refer to Table 4.2.4.Gross investment is equal to

A)$460.
B)$400.
C)$610.
D)$690.
E)$250.

Question 70

Net domestic income at market prices equals GDP income approach) minus

A)consumption expenditure.
B)depreciation.
C)taxes.
D)subsidies.
E)corporate profits.

Question 71

Wages, salaries, and supplementary labour income are components of which approach to measuring GDP?

A)output approach
B)value- added approach
C)income approach
D)injections approach
E)expenditure approach

Question 72

If nominal GDP increased by 11 percent during a year while real GDP increased by only 5 percent, then the

A)price level decreased by 6 percent.
B)unemployment rate fell during the year.
C)price level remained steady but real output fell by 6 percent.
D)price level increased by 16 percent.
E)price level increased by 6 percent.

Question 73

In the Canadian economy, market prices and factor costs would be the same except for

A)depreciation.
B)personal taxes.
C)indirect taxes and subsidies.
D)capital consumption.
E)exports.

Question 74

Use the table below to answer the following questions.
Table 4.2.4

Refer to Table 4.2.4.Gross domestic product is equal to

A)$1,770.
B)$2,250.
C)$1,940.
D)$2,150.
E)$2,400.

Question 75

The sum of wages, salaries, and supplementary labour income, and other factor incomes is

A)net domestic income at market prices.
B)GDP income approach).
C)net domestic income at factor cost.
D)real GDP.
E)GDP expenditure approach).

Question 76

In recent history, real GDP has risen less rapidly than nominal GDP.This is because

A)the goal of zero population growth has been reached.
B)capital increased.
C)the level of population rose.
D)the general price level fell.
E)the general price level rose.

Question 77

Real GDP will increase only if the

A)employment rate rises.
B)average level of prices rises.
C)quantity of goods and services produced increases.
D)unemployment rate rises.
E)employment rate falls.

Question 78

Real GDP equals

A)nominal GDP minus the value of goods exported to foreign countries.
B)nominal GDP adjusted for the depreciation of capital.
C)the value of final goods and services produced in a given year when valued at the prices of a reference base year.
D)nominal GDP minus the value of intermediate goods.
E)nominal GDP minus the rate of inflation.

Question 79

To obtain the factor cost of a good from its market price,

A)subtract depreciation.
B)add both indirect taxes and subsidies.
C)subtract indirect taxes and add subsidies.
D)add indirect taxes and subtract subsidies.
E)subtract both indirect taxes and subsidies.

Question 80

Use the table below to answer the following questions.
Table 4.2.4

Refer to Table 4.2.4.Net investment is equal to

A)$360.
B)$250.
C)$510.
D)$210.
E)$860.