Deck 26: an Introduction to National Income and Product Accounts

Question 1

Changes in business inventories will be positive when

A)production exceeds sales.
B)production is less than sales.
C)a trade surplus exists.
D)a budget surplus exists.

Answer 1

A

Question 2

Suppose exports are less than imports.Given this information,we know with certainty that

A)a trade deficit exists.
B)GNP > GDP.
C)GNP < GDP.
D)the change in business inventories is positive.

Answer 2

A

Question 3

Which of the following is included in National Income?

A)indirect taxes
B)consumption of fixed capital
C)proprietors' income
D)all of the above

Answer 3

C

Question 4

Suppose exports are greater than imports.Given this information,we know with certainty that

A)a trade surplus exists.
B)GNP > GDP.
C)GNP < GDP.
D)the change in business inventories is positive.

Question 5

Which of the following is not included in investment?

A)the purchase of new equipment by firms
B)nondurable goods
C)the purchase of a new home
D)none of the above

Question 6

If GDP exceeds GNP,we know with certainty that

A)a budget deficit exists.
B)a trade surplus exists.
C)a trade deficit exists.
D)receipts of factor income from the rest of the world exceed payments of factor income to the rest of the world.

Question 7

Which of the following is NOT included in National Income?

A)indirect taxes
B)wages and salaries
C)net interest
D)rental income of persons

Question 8

Changes in business inventories will be negative when

A)production exceeds sales.
B)production is less than sales.
C)a trade surplus exists.
D)a budget surplus exists.

Question 9

If GDP is more than GNP,we know with certainty that

A)a budget deficit exists.
B)a trade surplus exists.
C)a trade deficit exists.
D)none of the above

Question 10

Net national product (NNP)is equal to

A)personal income minus taxes.
B)GNP minus consumption of fixed capital.
C)GDP plus consumption of fixed capital.
D)national income plus consumption of fixed capital.

Question 11

Which of the following is NOT a component of consumption?

A)nondurable goods
B)purchase of a new condominium
C)education expenses
D)none of the above

Question 12

If GDP is less than GNP,we know with certainty that

A)a budget deficit exists.
B)a trade surplus exists.
C)a trade deficit exists.
D)none of the above