Econ 2020 Chapter 7

National income accountants can avoid multiple counting by:

Economy A: gross investment equals depreciation Economy B: depreciation exceeds gross investment Economy C: gross investment exceeds depreciation Refer to the above information. Positive net investment is occurring in:

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

(Consider This) When making a capital stock and reservoir analogy, the:

Economy A: gross investment equals depreciation Economy B: depreciation exceeds gross investment Economy C: gross investment exceeds depreciation Other things equal, the above information suggests that the production capacity in economy:

Suppose a nation's 2010 nominal GDP was $972 billion and the general price index was 90. To make the 2010 GDP comparable with the base year GDP, the 2010 GDP must be:

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

The total amount of income earned by U.S. resource suppliers in a year, plus taxes on production and imports, is measured by:

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

The concept of net domestic investment refers to:

Suppose the total monetary value of all final goods and services produced in a particular country in 2010 is $500 billion and the total monetary value of final goods and services sold is $450 billion. We can conclude that:

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

Environmental pollution is accounted for in:

The ZZZ Corporation issued $25 million in new common stock in 2008. 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:

The purchase of Wal-Mart stock is a part of gross investment, but not of net investment.

Which of the following transactions would be included in GDP?

Real GDP refers to:

If nominal GDP rises:

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

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

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

If net foreign factor income is zero and there are no statistical discrepancies, the sum of national income and the consumption of fixed capital equals:

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

The GDP tends to:

Suppose that inventories were $80 billion in 2007 and $70 billion in 2008. In 2008, accountants would:

Assume that in 2002 the nominal GDP was $350 billion and in 2003 it was $375 billion. On the basis of this information we:

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:

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

Which of the following do national income accountants consider to be investment?

Suppose a nation's 2010 nominal GDP was $972 billion and the general price index was 90. To make the 2010 GDP comparable with the base year GDP, the 2010 GDP must be:

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

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

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

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

In 2007, Trailblazer Bicycle Company produced a mountain bike that was delivered to a retail outlet in November of 2007. The bicycle was sold to E.Z. Ryder in March of 2008. This bicycle is counted as:

The value added of a firm is the market value of:

Setup Corporation buys $100,000 of sand, rock, and cement to produce ready-mix concrete. It sells 10,000 cubic yards of concrete at $30 a cubic yard. The value added by Setup Corporation is:

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

Suppose the total monetary value of all final goods and services produced in a particular country in 2010 is $500 billion and the total monetary value of final goods and services sold is $450 billion. We can conclude that:

The ZZZ Corporation issued $25 million in new common stock in 2008. 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:

(Last Word) Which of the following is a source of data for the consumption component of the U.S. GDP?

Disposable income measures the before-tax income received by resource suppliers.

The GDP tends to:

Transfer payments are included in:

In national income accounting, government purchases include:

If net foreign factor income is zero and there are no statistical discrepancies, the sum of national income and the consumption of fixed capital equals:

In an economy experiencing a persistently falling price level:

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

(Consider This) Capital is a:

Value added refers to:

Which of the following is a final good or service?

Gross domestic product (GDP) measures and reports output:

If nominal GDP is 150 and the GDP price index is 200, real GDP is 75.

In an economy experiencing a persistently falling price level:

Nominal GDP is:

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

The system that measures the economy's overall performance is formally known as:

Transfer payments are:

A price index is:

Personal income usually exceeds disposable income.

NDP can be determined by adding taxes on production and imports to GDP.

The value of U.S. imports is:

National income accountants define investment to include:

Real GDP is:

the nominal value of all goods and services produced in the domestic economy corrected for inflation or deflation.

In national income accounting, consumption expenditures include purchases of:

The largest component of total expenditures in the United States is:

In calculating GDP, governmental transfer payments, such as social security or unemployment compensation, are: