AP Econ: 6

A nation's gross domestic product (GDP):

Suppose the total market value of all final goods and services produced in a particular country in 2004 is $500 billion and the total market value of final goods and services sold is $450 billion. We can conclude that:

National income accountants can avoid multiple counting by:

By summing the dollar value of all market transactions in the economy we would:

Which of the following is an intermediate good?

In national income accounting, consumption expenditures include purchases of:

In national income accounting, consumption expenditures include:

Net exports are:

Gross investment refers to:

Net exports are negative when:

Which of the following is not economic investment?

National income accountants define investment to include:

As defined in national income accounting, investment includes

Suppose that inventories were $40 billion in 2003 and $50 billion in 2004. In 2004, accountants would:

Suppose that inventories were $80 billion in 2003 and $70 billion in 2004. In 2004, accountants would

Suppose that GDP was $200 billion in year 1 and that all other components of expenditures remained the same in year 2 except that business inventories increased by $10 billion. GDP in year 2 is:

Suppose that GDP was $200 billion in year 1 and that all other components of expenditures remained the same in year 2 except that business inventories fell by $10 billion. GDP in year 2 is:

If the economy adds to its inventory of goods during some year:

The smallest component of aggregate spending in the United States is:

Government purchases include government spending on:

In national income accounting, government purchases include:

Transfer payments are:

The value of U.S. imports is:

In the treatment of U.S. exports and imports, national income accountants:

In calculating the GDP national income accountants:

The ZZZ Corporation issued $25 million in new common stock in 2004. It used $18 million of the proceeds to replace obsolete equipment in its factory and $7 million to repay bank loans. As a result, investment:

In 2003 Trailblazer Bicycle Company produced a mountain bike that was delivered to a retail outlet in November of 2003. The bicycle was sold to E.Z. Ryder in March of 2004. This bicycle is counted as:

GDP differs from NDP in that:

If depreciation exceeds gross investment:

The concept of net domestic investment refers to:

If depreciation (consumption of fixed capital) exceeds domestic investment, we can conclude that:

When an economy's production capacity is expanding:

In 1933 net private domestic investment was a minus $6.0 billion. This means that:

An economy is enlarging its stock of capital goods:

A nation's stock of capital goods will decline when:

In an economy experiencing a declining production capacity:

If in some year gross investment was $120 billion and net investment was $65 billion, then in that year the country's capital stock:

Consumption of fixed capital (depreciation) can be determined by:

If net foreign factor income earned in the U.S. is zero, the sum of national income, indirect business taxes, and the consumption of fixed capital equals:

NDP is:

Which of the following best defines national income?

The total amount of income earned by U.S. resource suppliers in a year is measured by:

The largest component of national income is:

National income measures:

Personal income is most likely to exceed national income:

If personal income exceeds national income in a particular year, we can conclude that:

Which of the following best defines disposable income?

Which of the following is the largest dollar amount in the United States?

Which of the following is the smallest dollar amount in the United States?

Transfer payments are included in:

The amount of after-tax income received by households is measured by:

In a typical year which of the following measures of aggregate output and income is likely to be the smallest?

Nominal GDP is:

Real GDP refers to:

Real GDP measures:

Nominal GDP is adjusted for price changes through the use of:

In the second quarter (3-month period) of 2001, U.S. nominal GDP increased but U.S. real GDP declined. We can conclude that:

A price index is:

The GDP price index:

If real GDP in a particular year is $80 billion and nominal GDP is $240 billion, the GDP price index for that year is:

Suppose a nation's 2003 nominal GDP was $972 billion and the general price index was 90. To make the 2003 GDP comparable with the base year GDP, the 2003 GDP must be:

Suppose nominal GDP in 2002 was $100 billion and in 2003 it was $260 billion. The general price index in 2002 was 100 and in 2003 it was 180. Between 2002 and 2003 the real GDP rose by:

Historically, real GDP has increased less rapidly than nominal GDP because:

Suppose nominal GDP was $360 billion in 1990 and $450 billion in 2000. The appropriate price index

Real GDP and nominal GDP differ because the real GDP:

Nominal GDP was $130 and $150 in years 1 and 2 respectively. Real GDP was $100 and $110 in years 1 and 2 respectively. On the basis of this information we can conclude that:

If nominal GDP rises:

real GDP is

In comparing GDP data over a period of years, a difference between nominal and real GDP may arise because:

If nominal GDP in some year is $280 and real GDP is $160. The GDP price index for that year is:

In an economy experiencing persistent deflation:

If real GDP rises and the GDP price index has increased:

In determining real GDP economists adjust the nominal GDP by using the:

The fact that nominal GDP has risen faster than real GDP:

The growth of GDP may understate changes in the economy's economic well-being over time if the:

Assume that the size of the underground economy increases both absolutely and relatively over time. As a result:

(Consider This) In terms of a reservoir analogy, the:

(Consider This) In terms of a reservoir analogy, the:

(Consider This) Gross investment is a:

(Consider This) Capital is a: