Question 1

GDP is the total market value of all final goods and services produced in a given time period within a nation's borders.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is used to measure GDP,according to the income approach?

Accepted Answer

A)  Interest.
B)  Investment.
C)  Personal savings.
D)  Consumption expenditures.E) A) and C)
F) A) and D)

Question 3

If a nation has GDP of $12,500 billion and GDP per capita of $62,500,what is the nation's population?

Accepted Answer

A)  180 million.
B)  200 million.
C)  625 million.
D)  230 million.E) B) and C)
F) A) and D)

Question 4

Which of the following is treated differently in computations of GNP as compared with GDP?

Accepted Answer

A)  Sales in the underground economy.
B)  Goods produced by U.S.firms located in foreign countries.
C)  Intermediate goods.
D)  The value of services performed by housewives.E) A) and B)
F) A) and C)

Question 5

Which of the following is not a final good or service?

Accepted Answer

A)  A refrigerator purchased by a home owner.
B)  Paper purchased by a textbook company.
C)  A computer purchased by a local middle school.
D)  A flu shot purchased by a teacher.E) A) and C)
F) C) and D)

Question 6

In periods of rising prices,percentage increases in nominal GDP will

Accepted Answer

A)  Exceed percentage increases in real GDP.
B)  Equal percentage increases in real GDP.
C)  Be less than percentage increases in real GDP.
D)  Not change in relationship to real GDP.E) B) and C)
F) A) and B)

Question 7

The national income aggregate calculated by subtracting depreciation from GDP is known as

Accepted Answer

A)  Net investment.
B)  Net domestic product.
C)  Gross investment.
D)  Value added.E) All of the above
F) B) and D)

Question 8

Which of the following is directly included in the calculation of GDP?

Accepted Answer

A)  The final sale of a brand new Cadillac.
B)  The appreciation in value of shares of stock.
C)  The sales of sand to a glassmaker.
D)  The sales of land to a builder.E) A) and D)
F) A) and C)

Question 9

If one added up the value of all intermediate goods that went into the production of real GDP,the total value of intermediate goods would be

Accepted Answer

A)  Less than the GDP.
B)  Equal to the GDP.
C)  Greater than the GDP.
D)  None of the choices are correct.E) C) and D)
F) All of the above

Question 10

Which of the following typically purchases the most goods and services in the U.S.economy?

Accepted Answer

A)  Foreigners.
B)  Households.
C)  Federal,state and local governments combined.
D)  Businesses.E) B) and D)
F) B) and C)

Question 11

An economy's production possibilities curve indicates

Accepted Answer

A)  The rate of economic growth.
B)  The prices of any two goods.
C)  The rate of investment.
D)  How much the economy can produce.E) None of the above
F) C) and D)

Question 12

Nominal GDP is not used to determine recessions because inflation can disguise the occurrence of recessions.

Accepted Answer

A) True 
 B)False

Exam 5: National Income Accounting

Nominal GDP is not used to determine recessions because inflation can disguise the occurrence of recessions.

Correct Answer
verified

Which of the following typically purchases the most goods and services in the U.S.economy?

Correct Answer
verified

Which of the following is used to measure GDP,according to the income approach?

Correct Answer
verified

In periods of rising prices,percentage increases in nominal GDP will

Correct Answer
verified

GDP is the total market value of all final goods and services produced in a given time period within a nation's borders.

Correct Answer
verified

If one added up the value of all intermediate goods that went into the production of real GDP,the total value of intermediate goods would be

Correct Answer
verified

An economy's production possibilities curve indicates

Correct Answer
verified

Which of the following is treated differently in computations of GNP as compared with GDP?

Correct Answer
verified

Which of the following is not a final good or service?

Correct Answer
verified

The national income aggregate calculated by subtracting depreciation from GDP is known as

Correct Answer
verified

If a nation has GDP of $12,500 billion and GDP per capita of $62,500,what is the nation's population?

Correct Answer
verified

Which of the following is directly included in the calculation of GDP?

Correct Answer
verified

Exam 5: National Income Accounting

Nominal GDP is not used to determine recessions because inflation can disguise the occurrence of recessions.

Correct AnswerverifiedShow Answer

Which of the following typically purchases the most goods and services in the U.S.economy?

Correct AnswerverifiedShow Answer

Which of the following is used to measure GDP,according to the income approach?

Correct AnswerverifiedShow Answer

In periods of rising prices,percentage increases in nominal GDP will

Correct AnswerverifiedShow Answer

GDP is the total market value of all final goods and services produced in a given time period within a nation's borders.

Correct AnswerverifiedShow Answer

If one added up the value of all intermediate goods that went into the production of real GDP,the total value of intermediate goods would be

Correct AnswerverifiedShow Answer

An economy's production possibilities curve indicates

Correct AnswerverifiedShow Answer

Which of the following is treated differently in computations of GNP as compared with GDP?

Correct AnswerverifiedShow Answer

Which of the following is not a final good or service?

Correct AnswerverifiedShow Answer

The national income aggregate calculated by subtracting depreciation from GDP is known as

Correct AnswerverifiedShow Answer

If a nation has GDP of $12,500 billion and GDP per capita of $62,500,what is the nation's population?

Correct AnswerverifiedShow Answer

Which of the following is directly included in the calculation of GDP?

Correct AnswerverifiedShow Answer

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