Recent Question

Looking at the components of the income approach we see that 1) In the country of Darrowby, net domestic income at factor cost is $2.0 million. Gross domestic product is $3.0 million, and depreciation is $0.5 million. Indirect taxes less subsidies ________. A) are $1 million B) are $0.5 million C) cannot be calculated D) are -$0.5 million 2) The largest component of national income is A) compensation of employees. B) rental income. ...

Other / Other 26 May 2016

The business cycle refers to 1) The business cycle refers to A) fluctuations in the level of real GDP around potential GDP. B) changes in the level of nominal GDP. C) changes in the level of the stock market. D) changes in the level of employment. 2) A business cycle is A) the pattern of short-run upward and downward movements in total output. B) the increase in consumer spending that accompanies an increase in disposable income. C ...

Other / Other 26 May 2016

Real Gross Domestic Product is 1) Of the following, which is correct? A) Nominal GDP does not change when the production of goods and services increases. B) Nominal GDP is not affected by changes in prices of goods and services. C) Nominal GDP increases when the prices of goods and services increase. D) Real GDP changes only when the prices of goods and services really change. 2) Real GDP is A) an increase in the average level of price ...

Other / Other 26 May 2016

To calculate GDP using the expenditure approach, in part it is necessary to 1) Government expenditures included in the expenditure approach to GDP include ________. A) social security and education B) net exports C) buying a new bomber D) Both answers A and C are correct 2) Net exports of goods and services equal the A) exports of goods and services divided by the imports of goods and services. B) exports of goods and services plus ...

Other / Other 26 May 2016

Which of the following is NOT included in the income approach to measuring GDP 1) The income approach measures GDP by adding together compensation of employees, proprietorsʹ income, ________. A) net investment, saving, and farmersʹ income B) net interest, rental income, and corporate profits C) net investment, rental income, and corporate profits D) net saving, investment income, and profits 2) Which of the following items is ...

Other / Other 26 May 2016

The series of ups and downs the economy tends to move in is called 1) In any year, real GDP A) must always be less than potential GDP. B) might be greater or less than potential GDP. C) will always be greater than potential GDP because of the tendency of nations to incur inflation. D) always equals potential GDP. 2) The relationship between real GDP and potential GDP is that A) real GDP always equals potential GDP. B) real GDP neve ...

Other / Other 26 May 2016

When a recession ends, the turning point that immediately follows is called a 1) A recession is commonly defined as occurring when A) real GDP decreases for a period of 12 or more months. B) real GDP decreases for a period of 6 or more months. C) the unemployment rate rises above 7.5 percent for 6 or more months. D) the unemployment rate rises above 5.0 percent for 12 or more months. 2) By common definition, a recession occurs when A ...

Other / Other 26 May 2016

Nominal GDP is the value of final goods and services 1) Two reasons why valuing goods at their market prices is different than valuing them at their factor costs include A) depreciation and investment. B) exports and imports. C) personal taxes and corporate taxes. D) indirect taxes and subsidies. 2) Nominal GDP is A) real GDP adjusted for price changes. B) GDP valued at prices of that year. C) GDP valued at constant prices. D) re ...

Other / Other 26 May 2016

Which of the following is NOT part of GDP calculated using the expenditure approach 1) Which of the following items is NOT part of government expenditure on goods and services in the GDP accounts? A) gasoline purchases for government car pools B) Social Security expenditures C) new computer hardware for use by the IRS D) drapes to brighten up the presidentʹs office 2) Transfer payments are not included in GDP because A) their ma ...

Other / Other 26 May 2016

Which of the following is a component of the incomes approach to GDP 1) Proprietorsʹ income is a component of which approach to measuring GDP? A) incomes approach B) expenditure approach C) cost approach D) output approach 2) The income approach to measuring GDP A) determines the cost of production, then adjusts it to equal the market value of production. B) sums all incomes earned in the United States and makes no other adjustme ...

Other / Other 26 May 2016