Question Details

Which of the following is NOT a component of the incomes approach to GDP 



1) Which of the following is TRUE regarding real GDP?
I. Real GDP is the value of the total production of the countryʹs farms, factories, shops, and
offices.
II. Real GDP rises whenever inflation occurs.
III. Real GDP does not measure all that is produced.
A) I and II
B) I and III
C) II and III
D) I, II and III
2) In years with inflation, nominal GDP increases ________ real GDP.
A) faster than
B) slower than
C) at the same rate as
D) sometimes faster, sometimes slower, and sometimes at the same rate as
3) Suppose an economy has some inflation. Then, after a base year, the value of real GDP will
A) be less than nominal GDP.
B) not be different from nominal GDP.
C) be greater than nominal GDP.
D) will be approximately half the value of nominal GDP.
4) Gross private domestic investment is a component of which approach to measuring GDP?
A) incomes approach
B) expenditure approach
C) linking approach
D) output approach
5) Which of the following is NOT a component of the incomes approach to GDP ?
A) net exports
B) wages and salaries
C) corporate profits
D) proprietorsʹ income



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